BREAKING NEWS: Senate Banking Committee Hearing Looks for Answers in Bear Stearns Deal
Members of the Senate Banking Committee today are looking for answers in the Fed's role in the Bear Stearns bailout. They want to know among other things did the Fed go too far in his role in the Bear Stearns deal, how the players came up with the $2 per share amount, and did any other financial institutions have the opportunity to buy Bear Stearns. Fed Chief Ben Bernanke and JPMorgan Chairman and CEO Jamie Dimon, and Alan Schwartz of President and CEO of Bear Stearns are among those scheduled to testify.
Treasury Undersecretary for Domestic Finance Robert Steel is scheduled to say that U.S. regulators acted to save the company with the broader market in mind.
In the days before the Wall Street giant was bought by JPMorgan Chase "regulators were continuously communicating with one another, working collaboratively, and keeping each other appraised of the changing circumstances," Robert Steel will tell the Senate Banking Committee, according to prepared remarks.
"Our focus was not on this specific institution, but on the more strategic concern of the implications of a bankruptcy," he said. "The failure of a firm that was connected to so many corners of our markets would have caused financial disruptions beyond Wall Street."
Published on April 3, 2008
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