Sure enough, the Fed's actions Sunday, including lowering the rate it charges banks to lend directly from it and opening its discount window to Wall Street brokerages, didn't save Bear Stearns from collapse.
Speaking at a luncheon in Washington Friday, Fed Chairman Ben Bernanke wouldn't comment on the Bear Stearns situation.
Trading in Bear shares was so frantic that many didn't settle properly, and so Bear Stearns starting showing up on the New York Stock Exchange's daily list of stocks with high incidences of persistent trade settlement failures.
Bear Stearns didn't say how much money it would need to borrow to stop the liquidity drain.
Sitting next to Serge Milman in Broadway's trading room is Steven Girden, 36, a former o-t-c marketmaker at Bear, Stearns' risk arbitrage desk.
But the Fed just felt like they couldn't take the risk of having Bear Stearns, which has hooks in so many corners of the financial market, not just go bankrupt but go bankrupt so quickly.
The 51-year-old Bear Stearns veteran isn't predicting exactly what's ahead for his market.
One thing investors don't have to worry about is Lehman going the way of Bear Stearns.
But according to analysts like Bear Stearns' Joe Yurman, Harley hasn't been able to maintain its market share.
"From a practical standpoint, it just doesn't work, " says Joseph Riccardo, an analyst at Bear Stearns, of the plan.
Bear Stearns analyst Stephen Unger thinks the judge isn't buying IMS' free speech claim.
As the crisis progressed, Treasury errors didn't help, particularly its policy of virtually wiping out the value of Bear Stearns' common stock.
If Bear Stearns were fine by all measures of capital and regulatory adequacy, shouldn't it have survived?
But unlike Bear Stearns at least, Galena had virtually no leverage, so it isn't forced to sell off assets in a fire sale environment.
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