A Bear market

JPMorgan’s move to help sacked staff has merit, but Wall Street and the City may find that the normal levels of business brutality still work best
The collapse of one of Wall Street’s most powerful banks has deepened concerns about the stability of the financial system
The Federal Reserve said it had suffered a $2.7bn paper loss on the $29bn portfolio of toxic assets it took over from Bear Stearns in March, news which could fuel the backlash over the use of government funds to rescue financial institutions
Bear Stearns Private Equity to become JPEL
Securities fraud indictments over failed funds
Anticipated decline fails to materialise
Two ex-hedge fund executives probed

JPMorgan’s move to help sacked staff has merit, but Wall Street and the City may find that the normal levels of business brutality still work best

The rescue of Bear Stearns helped avert a disaster for financial markets already suffering a crisis of confidence. But now that the crisis has passed some of the banks fear that the price of continued access to support from the Fed may come in the form of severe restrictions

Pure investment banks have been hit hardest by the credit crunch and will be further diminished by the US regulatory response. But broader-based institutions may suffer most

Unless you argue that banks should face no capital adequacy regulation, the spread of securitisation demands new liquidity standards and higher capital ratios. Whether you call that ‘stricter regulation’ or ‘keeping regulation up to date’ is semantic, writes Clive Crook
More than 5,000 to lose jobs when merger closes
Dimon urges clients and rivals to hire workers
Cost is half as much again as estimate
Wall St bank reports 50% fall in profits
Quarterly income falls 79% to $115m
Hiring of BlackRock scrutinised
Israel’s Fischer sees start of containment
Investment banking tie-up
Rumours about bank ‘too big to miss’
Bank alleges short-selling of its stock
Sale occurred one day after offer was raised
Survey gives high ranking to Bear Stearns business
$500,000 bonuses offered to prevent exodus
Backing of higher bid for Bear at issue
Legal snags hit original offer
Surprising climbdown one week after $2 offer
Bear had no friends when it needed them
Rivals hold out large bonus offers
Planned group to assess risk management measures
Funding model of smaller lenders vulnerable