The Bear Isn't Looking So Bullish

Nearing a financial collapse, the once mighty investment bank Bear Stearns is being purchased by JPMorgan Chase for the paltry amount of $2 per share. And for the first time since the great depression, The Federal Reserve will provide special financing to JPMorgan Chase for the deal. The Fed agreed to fund up to $30 billion of Bear Stearns’ less liquid assets. Bear Stearns shares had once peeked at almost $160, but by Friday were down to $30 per share. What's most surprising about the quick fall of Bear Stearns, established in 1923, is that because it's an investment bank it has been generally detached from the issues affecting subprime lenders. The collapse of one of the world's largest and most historic investment banks would have large implications across the globe.