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Bear Stearns Calls for Bailout



14 March 2008 @ 12:35 pm EST

BAILOUT: JPMorgan Chase will lend Bear Stearns money for 28 days, with a backup guarantee from the Federal Reserve Bank of New York. No one has disclosed how large the financing is.

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NO CASH: Bear Stearns says it ran into problems within 24 hours amid a spike in demand from people trying to get their cash out of the firm. Earlier in the week Bear denied rampant market speculation that it had cash problems.

PLUNGING VALUE: As of midday Friday, Bear Stearns had lost more than $5 billion in market value and was trading at its lowest point in nine and a half years. The company said it hired Lazard to help it explore alternatives.

Copyright 2008 The Associated Press. All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

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