Fears that the bankruptcy of Bear Stearns would cause widespread
uncertainty about the financial conditions of other global investment
banks and further deepen the credit crunch prompted
Federal Reserve officials to engineer the company's rescue plan, New York
Fed Bank President Timothy Geithner said.
Geithner outlined the events leading up to the Fed's rescue plan for
the troubled New York investment company in Thursday's testimony before
the Senate Banking Committee.
"The news that Bear's liquidity position was so dire that a bankruptcy
filing was imminent presented us with...
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