Facts on Stocks

B1. Stock close at 62.30--11% plunge Alan Schwartz=BS, Liq, and Cap hefty Last form had to defend because 2 internal hedge funds insolvent -3.4B in MV Option vocationrs-right to sell bear at low prices apostrophize against default rising Lowered ratings by Moodys Originator of residential mortgages/pack into securities B2 keep going share=47% decline in one day Dow -195 points JP Morgan will borrow from Fed and lend to Bear--first period since Great Depression--risk by JPMorgan Paulson-Banks are very strong and will come out of it Buyers embarrass JPMorgan and Citadel Investment Group (bought E*trade) -response-cut 1.25points fed prise in 10 days, fiscal stimulus from congress Employees could not trade shares because of longstanding lockups weeks prior to the companys earnings announcements.

2 hedge funds failed in july Much of bear invested in mortgages and not as diverse as other IBs -fears of descent caused investors to stop trading with Bear -further caused problems -Schwartz called Dimon -JPMorgan was clearing agent for Bear trades -7:30 pm no deal yet-Fed discrete to step in -Fed decided a bailout using a legal clause-since 3 of governors on vacation-remaining 4 would have to agree on bailout -did not compliments to encourage future risky behaviors -offered add via JPMorgan (Commercial bank)àhas access to sack window. -besides being Bears creditors, JPMorgan is regular trading follower with Bear-so can face huge losses -JPMorgan wants Bears PB business-because it makes a lot of money and JPMorgan does not have it. - B3 bring up of financial troubles -major writedowns -economic downturn and stimulus plan by Bush -March 10--rumors that Bear doesnt have cashàbear claims no justness to rumors about liquidity probs -March14-bear announces bailout by JPMorgan and Fed -March 16- $2 a share -Fed change JP money Stock value of 3.5Billionà 236 million sale on Monday every take $2/share or go bankrupt -the loan from Fed-to JP for purchase-is based... If you want to get a full essay, order it on our website: Orderessay

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