Bear Stearns is toast. They have gotten money from the Fed (via) also JP Morgan Chase (who took them over), sorry, I meant ‘bailed them out‘ Bear Stearns became the financial equivalent of a drunken brother who was a hit and run driver, they fled the scene of their mortgage write downs and now JP is going to have to save their neck. Lehman Brothers is potentially facing the same issue.
If Lehman brothers are not in trouble then why do they need the 2bn dollar credit line? There is a credit crisis, but I think some of the firms out there are now facing a credibility crisis. The Lehman stock fell 40% in the last year. The underlying issue is property and leverage, there is a worldwide fall off in …