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Bear Stearns Bailout

Investment bank Bear Stearns, sinking in liquidity problems, received a lifeline today from the Federal Reserve. Working with JPMorgan Chase, the Fed began pumping cash into Bear Stearns to keep its problems from damaging the broader financial markets. NBR correspondent Suzanne Pratt looks at the market impact of the deal, and NBR Washington bureau chief Darren Gersh examines the Fed's historic action.

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Related NBR Stories & Links

• 02-11-08: The Federal Reserve's $200 B Injection
• 01-08-08: Bear Stearns Braces for a Management Shake Up
• 11-05-07: The Shake Up at Citi Sends Shockwaves through the Financial World
• 10-15-07: The Big Bank Rescue Fund
• 08-03-07: Bear Stearns Scares Up the Bears on Wall Street

External Links/Articles*

• Bear Stearns
  This links to a March 14, 2008 press release issued by Bear Stearns. The release is titled, "Bear Stearns Agrees to Secured Loan Facility with JPMorgan Chase.
• Federal Reserve - Press Release
  The Federal Reserve is the central bank of the United States. This links to a brief press release issued by the Fed on March 14, 2008. The release indicates the Federal Reserve Board's vote to provide liquidity to Bear Stearns was unanimous.
• Federal Reserve - Remarks
  The Federal Reserve is the central bank of the United States. This links to remarks made by Fed Governor Ben Bernanke on March 2, 2004. The remarks are titled, "Money, Gold, and the Great Depression." Bernanke's remarks examine how the Fed handled liquidity issues during the Great Depression.
• Hoover Institution
  The Hoover Institution is "a public policy research center devoted to advanced study of politics, economics, and political economy—both domestic and foreign—as well as international affairs." This links to a 2001 feature in the Hoover Institution's Policy Review. The feature is titled, "The Fed's 'Depression' and the Birth of the New Deal." The paper sheds some light on how the Federal Reserve acted during the liquidity crisis of the 1930's.
• JPMorgan Chase
  This links to a March 14, 2008 press release issued by JPMorgan Chase. The release is titled, "JP Morgan Chase and Federal Reserve Bank of New York to Provide Fianancing to Bear Stearns."
• U.S. House of Representatives (PDF Document)
  This links to a Joint Economic Committee Report titled, "The Importance of the Federal Reserve." Though published in 1997, the report offers a good point-by-point explanation of how the Federal Reserve can act to stabilize the financial system.

*Clicking these external links will take you off the NBR web site on PBS.org. NBR has no affiliation with these sites.