Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Search of Air Algerie crash site continues

Read more

MEDIAWATCH

Sarkozy, Hollande and the scooter wars

Read more

MEDIAWATCH

Confusion online over Air Algérie flight

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014

Read more

REPORTERS

Halal tourism on the rise

Read more

ENCORE!

Tunisia's Carthage International Festival turns 50

Read more

FRANCE IN FOCUS

WWI Centenary: the battle for Verdun

Read more

THE BUSINESS INTERVIEW

When big companies want to do good

Read more

  • Limited 12-hour humanitarian truce takes effect in Gaza

    Read more

  • Video: No investigation apparent at MH17 crash site

    Read more

  • In pictures: Devastation, debris at Air Algérie crash site

    Read more

  • Paris march for Gaza to go ahead Saturday despite police ban

    Read more

  • Kerry due in Paris for new round of Gaza ceasefire talks

    Read more

  • Washington Post reporter and his wife arrested in Iran

    Read more

  • French families grieve for Algerian plane crash victims

    Read more

  • Lithuania’s Navardauskas wins 19th stage of Tour de France

    Read more

  • LA Times wipes France off the map in air crash infographic

    Read more

  • Fans electrify the mood as Tour de France crosses the Pyrenees

    Read more

  • French lawyer files complaint against Israel at ICC

    Read more

  • Protest against Gaza offensive turns deadly in West Bank

    Read more

  • Halal tourism on the rise

    Read more

  • Ukraine names acting PM after Yatseniuk's shock resignation

    Read more

  • BNP to pay $80 million for defrauding Dept of Agriculture

    Read more

  • Deadly strike on UN shelter in Gaza Strip

    Read more

  • Pope meets Christian woman sentenced to death in Sudan

    Read more

Fed approves JPMorgan buyout of Bear Stearns

Latest update : 2008-04-02

The US Federal Reserve on Tuesday said it had approved JPMorgan Chase's proposed takeover of Bear Stearns and acknowledged the "emergency" of the situation. (Report: P. Hall)

The US Federal Reserve on Tuesday said it has approved JPMorgan Chase's proposed takeover of Bear Stearns, two weeks after it was announced, explaining the exceptionally short delay was due to the "emergency" of the situation.
   
"The Board has determined that an emergency exists requiring expeditious action on the proposal," the Fed said in a statement.
   
In a Fed-backed move last month, JPMorgan Chase rescued investment bank Bear Stears from collapse under mounting losses from soured real estate-related investments.
   
The Fed said that JPMorgan Chase had requested the central bank board's approval to acquire indirect control of Bear Stearns Bank & Trust (BSB&T), a subsidiary of The Bear Stearns Companies Inc.
   
JPMC proposes to acquire more than 25 percent of the voting shares of Bear Stearns and then merge Bear Stearns with a newly formed subsidiary of JPMC, with Bear Stearns as the surviving entity, it said.
   
The Fed board said it had provided notice to the primary federal and state supervisors of BSB&T and the Department of Justice and that none had objected to the transaction.
   
Fed chairman Ben Bernanke and other officials are set to testify at a US Senate panel hearing Wednesday on the Bear Stearns takeover that has raised concern among lawmakers about the government's unusual role in the rescue.
   
JPMorgan Chase hiked its offer for Bear Stearns on March 24 to 10 dollars per share, or over one billion dollars, quintupling a fire-sale price agreed a week earlier for the distressed investment bank.
   
The Federal Reserve Bank of New York has pledged 29 billion dollars of taxpayer money to finance the deal in return for 30 billion dollars' worth of Bear Stearns assets, including ailing mortgage-backed securities.
   
The portfolio of distressed Bear Stearns assets will be managed by BlackRock Financial Management on behalf of the Fed which will accrue any gains or losses from the portfolio.
   

Date created : 2008-04-02

COMMENT(S)