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Bear Stearns Drop

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  • Bear Stearns, a major investment bank, was heavily involved in subprime and other 'innovative' mortgage instruments, and has been pursuing various strategies to stave off insolvency since the summer of 2007. The Federal Reserve Bank and JP Morgan Chase have given assistance to Bear Stearns, and on March 16, 2008, Bear Stearns agreed to be purchased by JP Morgan Chase at a price of $2/share. JP Morgan Chase had previously announced that it would secure Bear Stearns' loans for 28 days.

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