nhboy
Ubi bene ibi patria
"The Federal Reserve, the US central bank, is leading a desperate struggle to prop up one of Wall Street's largest and most historic investment banks, as the credit crisis threatened to spiral into a full-blown banking crisis.
In a day of developments that rocked the world's financial markets, the Fed said it and rival Wall Street bank JPMorgan Chase had begun funnelling emergency loans to Bear Stearns, whose exposure to the battered credit markets had led to a crisis of confidence in its ability to keep trading.
Clients and trading partners have been pulling their business from Bear Stearns in accelerating numbers since rumors about its solvency began circulating earlier this week, it became clear. And in a rushed conference call with investors yesterday afternoon, the company's management warned that its emergency lending facility with the Fed had so far failed to staunch the bleeding.
"We have been subject to a significant amount of rumour and innuendo in the past week," said Alan Schwartz, its chief executive. "We attempted to provide some facts, but in the market environment the rumors intensified and a lot of people wanted to act to protect themselves first from the possibility that the rumours were true, and wait till later for the facts."
US Federal Reserve bails out Bear Stearns - Business News, Business - Independent.co.uk
In a day of developments that rocked the world's financial markets, the Fed said it and rival Wall Street bank JPMorgan Chase had begun funnelling emergency loans to Bear Stearns, whose exposure to the battered credit markets had led to a crisis of confidence in its ability to keep trading.
Clients and trading partners have been pulling their business from Bear Stearns in accelerating numbers since rumors about its solvency began circulating earlier this week, it became clear. And in a rushed conference call with investors yesterday afternoon, the company's management warned that its emergency lending facility with the Fed had so far failed to staunch the bleeding.
"We have been subject to a significant amount of rumour and innuendo in the past week," said Alan Schwartz, its chief executive. "We attempted to provide some facts, but in the market environment the rumors intensified and a lot of people wanted to act to protect themselves first from the possibility that the rumours were true, and wait till later for the facts."
US Federal Reserve bails out Bear Stearns - Business News, Business - Independent.co.uk
He can't even keep up with what his MPD posts.