Article: Federal Reserve backs new JPMorgan, Bear Stearns deal

The Federal Reserve is backing JPMorgan Chase & Co.'s revamped offer to buy Bear Stearns Cos.

The Federal Reserve Bank of New York said it will provide financing to facilitate the deal.

"This action is being taken by the Federal Reserve with the support of the Treasury Department to bolster market liquidity and promote orderly market functioning," the Federal Reserve Bank of New York said in a statement on Monday.

The Federal Reserve Bank of New York's $30 billion (19.45 billion) special financing linked to the transaction was changed so that JPMorgan will take on the first $1 billion (0.65 billion) of any losses suffered by Bear Stearns.

The ...

Related newspaper, magazine, and journal articles:

 
 
Newsweek Harper's Magazine The Washington Post Chicago Tribune Crain's Chicago Business PRNewswire Pediatric News The Nation Advertising Age The Economist (US) A FREE trial gives you access to over 80 million articles! Access over 6,500 publications with a FREE trial!