Updated from 8:54 a.m. EDTJPMorgan Chase ( JPM) announced Sunday that it will buy Bear Stearns ( BSC) in a stock swap that values the troubled investment bank at $2 a share. JPMorgan Chase will exchange 0.05473 shares of its common stock for each share of Bear Stearns. News of the deal, and subsequent moves by the Federal Reserve to address the liquidity problems facing the credit market were greeted with heavy selling overseas, as Asian markets fell across the board and early trading in Europe also saw losses. The Fed's cutting of the discount rate led to heavy selling of the dollar also, as the greenback traded as low as $1.5905 vs the euro, before dropping back to 1.5761. The purchase ends 85-year-old Bear Stearns' run as an independent investment bank.
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