Bear Sterns is sold for $2/share. What a collapse - consider that in January 2007 its shares sold for $171.52. Am I being paranoid here? Greenspan says this could be the worst financial crisis since WWII, the President is huddling with the big dogs today to discuss the financial crisis and in a rare weekend move the Fed cut the discount rate:
In an attempt to stem the bleeding on Wall Street, Federal Reserve on Sunday lowered the discount rate to 3.25% from 3.5% — a move “to bolster market liquidity and promote orderly market functioning.”
The discount rate is the rate charged to banks and other depository institutions for borrowing short-term funds directly from their regional Federal Reserve Bank.
Action on the Federal Funds rate is due this week as well.
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Fed Cuts Rate And Mortgage Interest Rates Rise
The Inside Scoop on the Bear Sterns Bailout
Financial Emergency: Fed Cuts Rates by 0.750%
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on Mar 17th, 2008 at 10:58 pm
Yea I still can’t believe they fell apart that badly, and that quickly. from 160 to 2… ouch. Plus with them closing at $30 on friday to sell on sunday for 2 dollars, you just know that things were bad…
Rogan McGillis