Video encyclopedia

16/03/2008 Bear Stearns is saved in a merger with JP Morgan

Bear Stearns signed a merger agreement with JP Morgan Chase in a stock swap worth $2 a share or less than 7 percent of Bear Stearns' market value just two days before. The new company is funded by loans of $29 billion from the New York FRB, and $1 billion from JP Morgan Chase, with no further recourse to JP Morgan Chase.