The Bear Stearns Companies Inc. has reached an agreement with JPMorgan Chase & Co. to provide a secured loan facility for an initial period of up to 28 days allowing Bear Stearns to access liquidity as needed.
Bear Stearns is talking with JPMorgan Chase & Co., regarding permanent financing or other alternatives.
“Bear Stearns has been the subject of a multitude of market rumors regarding our liquidity. We have tried to confront and dispel these rumors and parse fact from fiction. Nevertheless, amidst this market chatter, our liquidity position in the last 24 hours had significantly deteriorated. We took this important step to restore confidence in us in the marketplace, strengthen our liquidity and allow us to continue normal operations,” says Alan Schwartz, president and CEO, The Bear Stearns Companies Inc.
The company can make no assurance that any strategic alternatives will be successfully completed.