European stocks closed lower on Wednesday after half-hearted attempts to bounce in the green during the day, as fears over the health of the financial markets returned to haunt the markets following yesterday's rally.
Stocks turned mixed Wednesday after an initial jump spurred by news that regulators will provide some much-needed capital relief to Fannie Mae and Freddie Mac. Visa shares surged.
U.S. investment banks are testing a new program set up in conjuction with the rescue of Bear Stearns that allows investment banks to borrow directly from the Federal Reserve, according to people at the banks.
There are reports this morning that Fannie Mae has won the capital relief some have asked for. At 9 am OFHEO (Office of Federal Housing Enterprise Oversight--Fannie's regulator) has scheduled a conference call to discuss alleviating some of the capital constraints on Fannie and Freddie.
Buyers came back to Wall Street in a big way Tuesday, igniting a sharp rally and new debate about whether stocks have bottomed.
Asset manager BlackRock said Monday it expects auction-rate securities auctions to continue to fail, given roiling markets, and said it would explore ways to help its fund shareholders who are suffering due to the lack of liquidity.
Enthusiasm for the Federal Reserve's actions to stem the credit crunch propelled the Dow Jones Industrial Average to a higher close Monday, a day when everyone expected a rout due to weekend fire sale of Bear Stearns.
The Dow Jones Industrial Average pared its losses Monday as the sell-off spurred by the fire sale of Bear Stearns wasn't as bad as expected.
Lehman shares tumbled more than 20 percent Monday as Wall Street speculated whether or not it's the ailing banking system's next casualty.
Stocks plunged at the opening bell Monday as investors were spooked by the cash crisis at Bear Stearns that forced its sale for $2 a share to JP Morgan Chase.
To everyone who called me or emailed me over the weekend saying, "How could this happen? How could Bear Stearns go from $57 to $2 in two days?" I would offer the comment of one astute trader, who said, "When you are levered 30 times and have no access to finance it doesn't take a huge move on $400 billion in assets and $260 billion of debt to wipe out the equity."
Department heads at Bear Stearns met with officials at J.C. Flowers and JPMorgan Chase Saturday afternoon to give an overview of their business divisions, including headcount and profit and loss positions, CNBC has learned.
For the week ending Friday, March 14, 2008 the US Markets ended mixed. Market moving events include the Fed's $200B expansion of its securities lending program and the Bear Stearns bailout, amongst others leading to extreme market volatility. The Dow gained 417 points on Tuesday, only to lose the majority of its gains to close up only 0.48% for the week. The VIX crossed 30 for the first time since January. Next week, the markets will watch for the the FOMC announcement on interest rates Tuesday, the Visa IPO on Wednesday, and a slew of brokerage earnings including Goldman Sachs, Lehman Brothers, Morgan Stanley and possibly Bear Stearns.
The big story of the week is the Fed's meeting Tuesday, but that meeting and all Fed activity takes on a new level of urgency after the central bank helped J.P. Morgan engineer a lifeline to keep Bear Stearns liquid.
Stocks tumbled Friday, after an initial jump, following news that J.P. Morgan Chase and the New York Federal Reserve are jumping in to help Bear Stearns.