Friday, March 14, 2008

Bailout, pure and simple:

If you're puzzled about today's Fed/JPMorgan/Bear action, here's Barry Ritholtz:
10:33: If you are wondering WTF a non-recourse, back-to-back financing is, pull up a chair:

JPM gets to go the the Discount Window and borrow all the greenbacks they want; Then they loan that to Bear. In the event that Bear defaults, the NY Fed cannot go back to recover from JPM -- hence, non-recourse.
Liveblogging (!) the Bear meltdown.


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