JPMorgan Chase and Federal Reserve Bank of New York agreed to provide emergency financing to cash-strapped brokerage Bear Stearns, for up to 28 days.
Bear Stearns said the move would allow it to continue normal operations. Bear Stearns is Wall Street’s 5th largest investment bank.
Bear Stearns news scattered investors, pushing the Dow Jones industrial average down more than 250 points at one point in the morning.
J.P. Morgan is also helping Bear find sources of long-term permanent financing.