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May 11, 2008 8:28:27 PM CDT

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2 Probes Launched Into Bear Stearns Deal  

Posted Mar 27, 08 4:40 AM CDT in Politics,  Business    Most Covered

(newser) – The controversial acquisition of Bear Stearns by rival JP Morgan Chase, aided by billions of dollars of government credit, is about to become one of the most scrutinized deals in Wall Street history. Two separate Senate investigations will soon be under way, one by the Banking Committee and another by the Finance Committee, reports the New York Times.

The tone of the investigations already threatens to be testy. The Finance Committee chair vowed his panel will probe “just how the government decided to front $30 billion in taxpayer dollars for the Bear Stearns deal." The chairman of the the Banking Committee has called on government architects of the deal to testify next week.

Source New York Times

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    Mar 24, 08 4:00 AM CDT
    JPMorgan in Talks to Boost Bear Stearns Bid JPMorgan Chase was in negotiations last night to quintuple its bid for Bear Stearns following a storm of angry protests by Bear shareholders over the initial bargain-basement deal for the investment banking giant, reports the New York Times. Under the new deal, JPMorgan Chase would pay $1 billion—$10 a share, up from the initial offer of $2 a share, which represented just one-fifteenth of Bear’s market price.
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2 Probes Launched Into Bear Stearns Deal
Senate Finance Committee Chairman Max Baucus. His committee is investigating the Federal government's role in the Bear Stearms acquisition by JP Morgan.   (AP Photo)
2 Probes Launched Into Bear Stearns Deal
The acquisition of Bear Stearns by JP Morgan Chase is being scrutinized by two Senate panels.   (AP Photo/Mark Lennihan)
2 Probes Launched Into Bear Stearns Deal
Senate Banking Committee chairman Christopher Dodd and ranking Republican Richard Shelby. The committee is investigating the controversial Bear Stearns takeover.   (AP Photo/Dennis Cook)
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Tags

Federal Reserve  • Bear Stearns  • JP Morgan Chase  • Christopher Dodd  • Treasury Department  • Senate Finance Committee  • Charles Grassley  • Max Baucus  • Senate Banking Committee  • Securities and Exchange Commission


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