Stocks Sink, Bear Stearns Receives Bailout
U.S. stocks fell on Friday after Bears Stearns needed to be bailed out by JPMorgan Chase and the Federal Reserve. Read Gary Kaltbaum’s article on the BSC debacle here.
The Dow lost -194.65, the Nasdaq Composite -51.12, and the S&P 500 -27.33.
Bear Stearns
(
BSC |
Quote |
Chart |
News |
PowerRating) plunged more than 47% after needing to be bailed out by JPMorgan Chase
(
JPM |
Quote |
Chart |
News |
PowerRating), with a little help from the Fed. BSC was experiencing such difficulty that it couldn’t wait to borrow from the Fed on March 27, instead having to turn to JPMorgan Chase, who borrowed from the Fed.
The news caused widespread selling of financial stocks, including Citigroup
(
C |
Quote |
Chart |
News |
PowerRating), Bank of America
(
BAC |
Quote |
Chart |
News |
PowerRating), Merrill Lynch
(
MER |
Quote |
Chart |
News |
PowerRating), et al.
Lehman Brothers
(
LEH |
Quote |
Chart |
News |
PowerRating) fell nearly 15% and Washington Mutual
(
WM |
Quote |
Chart |
News |
PowerRating) lost more than 12%.
Boeing
(
BA |
Quote |
Chart |
News |
PowerRating) was the only stock in the Dow to close higher, rising 2.8%.
| Market Snapshot | ||||||||||||
|
| Economic News |
|
|