Bear Sells for $2 a Share; Fed Cuts Discount Rate
Bear Stearns reached a deal to sell itself to J.P. Morgan for $2 a share, or $236 million, amid fears that failing to find a buyer could deepen Wall Street's crisis of confidence. Many investors have seen the value of their stakes in Bear plummet. The pain could be most acute for the firm's employees, who hold about a third of the firm's shares outstanding. Meanwhile, the Fed expanded its discount-window lending to securities dealers and cut its rate to 3.25% from 3.5% as the steepening credit crunch threatens the economy.
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