US stocks fall as Bear Stearns reignites credit fears
17 March 2008
Bear Stearns negotiated an emergency funding deal with the Federal Reserve and JPMorgan Chase Friday, intensifying fears the global credit crisis will claim more victims and driving Bear's shares down by as much as half. It was the Federal Reserve's first rescue of a broker since the Great Depression and its latest effort to soothe financial markets roiled by fallout from rising mortgage defaults. Bear Stearns' chief executive, Alan Schwartz said on Friday: "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".