Bear Stearns Collapse Leads to Global Selloff
U.S. stocks experienced a roller coaster ride on Monday, after a global sell off was triggered by the collapse of Bear Stearns. The Federal Reserve took emergency action, cutting the discount rate by 25bp and offering to lend to securities dealers at the same rates as banks.
The Dow gained +21.16, while the Nasdaq Composite lost -35.48, and the S&P 500 -11.54.
Bear Stearns
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Many analysts felt the price JPMorgan Chase
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The deal, struck over the weekend, sent shockwaves around the world, and led to heavy selling of financial stocks.
Shares of Lehman Brothers
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MF Global
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The dollar sunk to a 12-year low versus the yen, and treasuries rose, sending the yield on 3-month T-bills to the lowest level since the 1950’s.
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