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JAVolatility On Wall Street
March 24, 2008
Stocks rose today a news that JPMorgan Chase & Co's buyout of beleaguered Bear Stearns would be higher than expected. Bear Stearns was in trouble after investing heavily in unstable sub-prime mortgages. When the Federal Reserve bailed out the company recently JPMorgan Chase offered to by it for $2 a share, well below market value. Stockholders at the company were angry and investors worried that that the low offer meant there was still more bad news from the financial sector. With the new offer, however, Wall Street investors took the new offer as a measure of confidence and shares of Bear Stearns rose to around $12 a share.
