The shock continues to the world markets. The deal to save bear Stearns by JPMorgan Chase is worth a mere $2 per share, barely one third the price of the 1985 Bear Stearns IPO.
This very share was selling for over $170 just a year back.
As part of the deal, JPM and the Fed will guarantee the huge trading obligations of the firm.
The agreement ended a day in which bankers and policy makers were racing to complete the takeover agreement before financial markets in Asia opened on Monday, fearing that the financial panic could spread if the 85-year-old investment bank failed to find a buyer.
After continues denials, the housing bubble is claiming its first victim. The effects are visible all over the financial markets, the rumble tumble continues non-stop.
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