Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

A thin line between fact-checking and propaganda in Gaza social media coverage

Read more

DEBATE

Gaza: How to Stop the Spiral? Israel Readies For Ground Offensive (part 2)

Read more

DEBATE

Gaza: How to Stop the Spiral? Israel Readies For Ground Offensive

Read more

FOCUS

Ireland's missing babies casting light on a dark history...

Read more

WEB NEWS

World Cup 2014: Germany-Brazil inspires the Web

Read more

THE INTERVIEW

Boutros-Ghali: 'I wanted to reform the UN'

Read more

IN THE PAPERS

57 000 little problems

Read more

IN THE PAPERS

The Sarkozy 'threat'

Read more

BUSINESS DAILY

Budget challenge for India's new government

Read more

  • Hamas rockets reaching deeper into Israel

    Read more

  • French companies will have to accept anonymous CVs

    Read more

  • Ukrainian forces close in on Donetsk

    Read more

  • Germany asks US intelligence station chief to leave country

    Read more

  • Death toll rises in Gaza as militants target Israeli cities

    Read more

  • UN chief Ban Ki-moon appoints new Syria mediator

    Read more

  • Video: Muslims in China confront obstacles to Ramadan fasting

    Read more

  • Tour de France passes WWI Chemin des Dames battlefield

    Read more

  • Senegalese man awarded French visa in gay marriage debate

    Read more

  • Israel steps up airstrikes as diplomacy gets under way

    Read more

  • Argentina beat Netherlands on penalties to reach World Cup final

    Read more

  • Foiled French jihadist ‘targeted Louvre and Eiffel Tower’

    Read more

  • Obama in Texas to urge congressional action on child migrant crisis

    Read more

  • Iraq’s heritage 'in danger' from ISIS militants

    Read more

  • 100 years on, the Tour de France returns to the Western Front

    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

Comments

COMMENT(S)