Liquidity Problems Slaughter Bear

Stock quotes in this article: BSC , JPM , MS , GS , LEH , FNM , FRE  

Thursday

Despite the denials from Greenberg and Schwarz, the rumors persist and traders are seeking permission before acting in long-term transactions with Bear. A Wall Street Journal story says there is no actual proof that Bear faces a liquidity crisis, and executives insist that it isn't. Nonetheless, one analyst points out the mere fear of a crisis can be enough to overrun a firm.

Bear's CEO Didn't Lie

Friday

In today's premarket, JPMorgan and the New York Fed stun the market with a Bear Stearns bailout. In a press release Bear Stearns CEO Schwartz says in part "...our liquidity position in the last 24 hours had significantly deteriorated. We took this important step to restore confidence in us in the marketplace, strengthen our liquidity and allow us to continue normal operations."
  • Loading Comments...
  •  
1 2
Next >

SHARE:

  • email
  • print
  • comment
  • digg
  • delicious
  • linkedin
This article was written by a staff member of TheStreet.com.

Recent Comments





Connect with TheStreet

Dow Jones S&P 500 NASDAQ 10-Year Note
10,456.92 1,109.26 2,209.68 35.96
Oil *
72.11
DOWN
44.13
DOWN
4.85
DOWN
2.42
UP
0.50
10 Yr
3.60%
SPDR Gold
110.11
-0.42%
-0.44%
-0.11%
+1.41%
Data delayed 20 minutes

Brokerage Partners

TheStreet Premium Services

All Services