MONDAY:
NEW YORK (Reuters) - Bear Stearns Cos (BSC.N: Quote, Profile, Research) Chief Executive Alan Schwartz on Wednesday dismissed recurring speculation that the investment bank faces a cash crunch, saying it has hefty cash reserves that have remained little changed this year.
FRIDAY:
NEW YORK (AP) -- JPMorgan Chase says that in conjunction with the Federal Reserve Bank of New York it will provide temporary funding for Bear Stearns.
Bear Stearns says its liquidity significantly deteriorated over the past day and the temporary funding will help it continue operating normally. The investment bank added there is no guarantee any permanent strategic alternatives will be successful.
And when they aren't lying, they are simply incompetent:
Subprime lending and the securitization of debt was an innovation that, it was believed, offered the prospect of increasing homeownership. But "risk management" was out of its depth here: It had no past data from which to estimate needed valuations on the novel assets, it did not allow for possible macroeconomic dynamics, and it took inadequate account of the system effects of unknown numbers of entrants into the new business all at nearly the same.
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