CNBC: Federal Reserve cuts Discount Rate to 3.25% -- Effectively Immediately
- Thread starter Cowlesy
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IChooseLiberty
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Considering it was at 3.00%.... that doesn't sound like much of a cut.
Perhaps you meant 2.25%? That would make it a 75 bps rate cut.
Perhaps you meant 2.25%? That would make it a 75 bps rate cut.
Cowlesy
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Please note in my post above I distinguished between the Discount Rate and the Fed Funds Rate which are two completely separate animals.
IChooseLiberty
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O. I did not know that. I thought they were 2 names for the same thing.
ItsTime
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mtmedlin
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Can you clear this up a littel for me. I am closing on a large SBA loan shortly and am paying 2.75 over the WSJ Prime Rate. Will this have any short term effect. (like in the next week or so)
Dr.3D
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JPMorgan Acts to Buy Ailing Bear Stearns at Huge Discount
Looks to be a dun deal!
http://www.nytimes.com/2008/03/16/business/16cnd-bear.html?_r=1&hp&o
Looks to be a dun deal!
http://www.nytimes.com/2008/03/16/business/16cnd-bear.html?_r=1&hp&o
PatriotG
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Isnt The Fed Generous!
Yes The JP Morgan - Bear Stearns Deal is done.
NEW YORK (Reuters) - JP Morgan Chase & Co said on Sunday it would buy stricken rival Bear Stearns for just $2 a share in an all-stock deal valuing the fifth largest investment bank at about $236 million.
Under the deal, the Federal Reserve will provide special financing and has agreed to fund up to $30 billion of Bear Stearns' less liquid assets.
In a statement, JP Morgan said it would exchange 0.05473 shares of its stock for one share of Bear Stearns' stock. It is guaranteeing the trading obligations of Bear Stearns and its subsidiaries.
Bear Stearns' cash reserves were drained by fleeing customers on Thursday, and on Friday the bank secured emergency funding from the Federal Reserve, extended through JP Morgan.
Bear Stearns' chief executive, Alan Schwartz, said in a statement the deal represented the "best outcome for all of our constituencies based upon the current circumstances."
JP Morgan's chief executive Jamie Dimon said in a statement: "Bear Stearns' clients and counter parties should feel secure that JP Morgan is guaranteeing Bear Stearns' counter party risk."
The bank said the deal was expected to close by the end of the second quarter and would be accretive to JP Morgan's annual earnings.
Yes The JP Morgan - Bear Stearns Deal is done.
NEW YORK (Reuters) - JP Morgan Chase & Co said on Sunday it would buy stricken rival Bear Stearns for just $2 a share in an all-stock deal valuing the fifth largest investment bank at about $236 million.
Under the deal, the Federal Reserve will provide special financing and has agreed to fund up to $30 billion of Bear Stearns' less liquid assets.
In a statement, JP Morgan said it would exchange 0.05473 shares of its stock for one share of Bear Stearns' stock. It is guaranteeing the trading obligations of Bear Stearns and its subsidiaries.
Bear Stearns' cash reserves were drained by fleeing customers on Thursday, and on Friday the bank secured emergency funding from the Federal Reserve, extended through JP Morgan.
Bear Stearns' chief executive, Alan Schwartz, said in a statement the deal represented the "best outcome for all of our constituencies based upon the current circumstances."
JP Morgan's chief executive Jamie Dimon said in a statement: "Bear Stearns' clients and counter parties should feel secure that JP Morgan is guaranteeing Bear Stearns' counter party risk."
The bank said the deal was expected to close by the end of the second quarter and would be accretive to JP Morgan's annual earnings.
Thomas_Chippendale
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Bloomberg Articles
Bear Stearns:
http://www.bloomberg.com/apps/news?pid=20601103&sid=aWbXzzlzNAnw&refer=news
Fed:
http://www.bloomberg.com/apps/news?pid=20601103&sid=abD97qEA5E_Q&refer=news
Covers the story, combined with other Fed actions. I believe we're in the group the writer aptly describe as "dollar doomsayers."
Text of the Federal Reserve's statement issued today:
http://www.bloomberg.com/apps/news?pid=20601103&sid=aUJpMnL7Beu8&refer=news
The direct rate is down to 3.25%
The target rate is 'likely' to be reduced tomorrow from 3% to 2.25%.
The Fed is covering 30 billion of Bear Stearns' "less-liquid" assets. They are also financing the transaction for JPMorgan. Hard to go bad on that deal if you're JPMorgan, Bear Stearns ' office building in Manhattan is worth $1.2 billion by itelf.
I wish Ben Bernake was MY friend... I'd get a loan for that Ferrari Enzo I've always wanted.
Dollar dropped to $1.58 against Euro in Asian trading, back up to $1.57.
http://free.charts.xe.com/misc/xe.asp
Bear Stearns:
http://www.bloomberg.com/apps/news?pid=20601103&sid=aWbXzzlzNAnw&refer=news
Fed:
http://www.bloomberg.com/apps/news?pid=20601103&sid=abD97qEA5E_Q&refer=news
Covers the story, combined with other Fed actions. I believe we're in the group the writer aptly describe as "dollar doomsayers."
Text of the Federal Reserve's statement issued today:
http://www.bloomberg.com/apps/news?pid=20601103&sid=aUJpMnL7Beu8&refer=news
The direct rate is down to 3.25%
The target rate is 'likely' to be reduced tomorrow from 3% to 2.25%.
The Fed is covering 30 billion of Bear Stearns' "less-liquid" assets. They are also financing the transaction for JPMorgan. Hard to go bad on that deal if you're JPMorgan, Bear Stearns ' office building in Manhattan is worth $1.2 billion by itelf.
I wish Ben Bernake was MY friend... I'd get a loan for that Ferrari Enzo I've always wanted.
Dollar dropped to $1.58 against Euro in Asian trading, back up to $1.57.
http://free.charts.xe.com/misc/xe.asp
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