Bear Stearns was facing bankruptcy on March 14 without a major liquidity injection and U.S. regulators acted to save the company with the broader market in mind, a senior Treasury official will say on Thursday to Senate Banking Committee at Capitol Hill.
In the days before the Wall Street giant was bought by JP Morgan Chase "regulators were continuously communicating with one another, working collaboratively, and keeping each other apprised of the changing circumstances," Treasury Undersecretary for Domestic Finance Robert Steel will tell the Committee.
"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."
Story contributed by Reuters: Read More
In the days before the Wall Street giant was bought by JP Morgan Chase "regulators were continuously communicating with one another, working collaboratively, and keeping each other apprised of the changing circumstances," Treasury Undersecretary for Domestic Finance Robert Steel will tell the Committee.
"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."
Story contributed by Reuters: Read More
