JPMorgan buys Bear Stearns for $236M; Fed backs deal
CBS
Transcript
[Music] the Big Bear Stern's buyout churned up fears on Wall Street JP Morgan Chase is picking up the Street's fifth largest Investment Bank for just $236 million roughly 1% of what the financial giant was worth at the beginning of the month stocks managed to finish the day mix despite investor worries the credit crisis that brought be Sterns to its knees could spread the Dow closed up 21 points the NASDAQ gave back 35 the Federal Reserve is backing the be Sterns deal essentially taking responsibility for any risk JP Morgan takes on in rescuing its rival from bankruptcy ahead of its meeting Tuesday the FED also took the extraordinary step of lowering the rated charges to loan directly to Banks and in yet another move to restore confidence the FED announced a new lending option for big investment Banks to secure short-term loans after meeting with members of his economic President Bush praised the FED for its Swift action Mr Bush admitted uncertain stock markets record high oil prices and a record low dollar postings make these challenging times but said his administration is on top of the situation the president repeated assurances the economy will be fine in the long run that's your money watch log on to cbsnews.com for more in New York I'm Allison Harlin