17 Mar
How the Bear Stearns Deal Happened
Here’s all you need to know about what your government is doing for you……..as taxpayer.
From CNN:
JPMorgan (JPM, Fortune 500) executives initially decided to pass on a purchase of Bear Stearns this past weekend, Bear execs said, largely because of the risks tied to Bear’s mortgage portfolios. They changed their minds after the Fed agreed to pony up $30 billion in so-called nonrecourse loans - agreements that transfer the risk of Bear’s bad mortgage bets to U.S. taxpayers. The Fed’s decision paved the way for the Sunday evening deal that put Bear in JPMorgan’s hands for $2 a share, a 93% discount to Friday’s closing price.
