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For Teachers: Lessons on the Financial Sector and Liquidity

Stock quotes in this article: JPM , BSC , LEH , GS , MS , V , C , BAC  

The Week in Review is provided by The Stock Market Game, which is a curriculum-based teaching tool that allows students to invest a hypothetical $100,000 online stock portfolio to learn about long-term saving and investing.

The Stock Market Game Week in Review: March 17-20

It was a wild week on Wall Street. The markets tumbled on Monday, Mar. 17 after JP Morgan Chase & Co. (JPM Quote) agreed to pay just $2 per share to buy Bear Stearns (BSC Quote), the country's fifth-largest investment bank investment-bank.

Last week, Bear endured Wall Street's version of a run-on-the-bank. Investors feared the firm was experiencing liquidity liquidity problems and began withdrawing their money in droves. Unable to remain solvent without assistance, Bear Stearns sought help from the Fed federal-reserve-system as well as JP Morgan to save it from certain demise. A loan deal was worked out so the Fed would, in effect, loan Bear money through JPMorgan. ...

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