Mary Posted March 17, 2008 Report Share Posted March 17, 2008 Shares across the world have dived after the dramatic rescue of US investment bank Bear Stearns caused severe worries in the stock markets. The FTSE 100 Index lost more than 100 points, or around 2%, within moments of the start of trading, mirroring the major slides elsewhere. Bank stocks, including Barclays, Alliance & Leicester, Royal Bank of Scotland and HBOS were among the worst affected. Japan's Nikkei stock index had already fallen by almost 4% and Hong Kong's Hang Seng lost a similar amount in the wake of the news. France's CAC 40 fell by around 2% and Germany's Xetra Dax lost about 3%. The Bank of England pumped an extra ?5bn into the money markets to ease a freeze in overnight lending between banks and thus boost the economy - it was the Bank's first such emergency operation since the start of the credit crunch six months ago. JPMorgan Chase is buying its big rival for just $2 a share - a small fraction of its previous value. The deal values Bear Stearns, one of those at the centre of the US mortgage crisis, at about $236m (?116m). Sky News Business Editor Michael Wilson says the worrying aspect of the whole affair is that Bear Stearns' debts were supposedly "good" ones and not from the risky sub-prime market. Hang on to your behinds folks Quote Link to comment Share on other sites More sharing options...
observer Posted March 17, 2008 Report Share Posted March 17, 2008 The joys of capitalism?! Quote Link to comment Share on other sites More sharing options...
Paul Kennedy Posted March 17, 2008 Report Share Posted March 17, 2008 JP Morgan have done alright it seems......pity they didn't fancy buying Northern Rock. PS You've got to laugh though..well maybe not....banks not prepared to lend to other banks, because......... they don't consider them a good credit risk. [ 17.03.2008, 14:19: Message edited by: Paul Kennedy ] Quote Link to comment Share on other sites More sharing options...
asperity Posted March 18, 2008 Report Share Posted March 18, 2008 At least in the US it was the other banks that did the rescue job and not the taxpayers. Mind you I think that's probably because the politicians in the US are more accountable to their electorate than here in the UK and wouldn't dare to pull off a stunt like Northern Rock. Quote Link to comment Share on other sites More sharing options...
observer Posted March 19, 2008 Report Share Posted March 19, 2008 What's the US Fed? :confused: Quote Link to comment Share on other sites More sharing options...
asperity Posted March 19, 2008 Report Share Posted March 19, 2008 Mainly burgers with fries and a diet coke Well you did ask Quote Link to comment Share on other sites More sharing options...
Paul Kennedy Posted March 19, 2008 Report Share Posted March 19, 2008 Must admit that the US response to their banking problem has been very impressive...a real no nonsense approach and sorted in a matter of days. Pity our Government didn't sort NR out so quickly...Lloyds TSB were interested....but I guess Mr Brown and his crew had other things on their minds. Quote Link to comment Share on other sites More sharing options...
Mary Posted March 19, 2008 Author Report Share Posted March 19, 2008 In the end we will end up paying some how - but the Federal Reserve Bank finally realized that our economy could get really rocky if they didn't do something soon! The dollar is not worth much and that has a ripple effect globally! Oh how the mighty will fall. Quote Link to comment Share on other sites More sharing options...
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