The federal government lent JPMorgan Chase the $240 million to buy Bear Stearns, the fifth largest Wall Street firm, after its spectacular plunge last week. The feds’ tender mercies will allow Bear Stearns to wind down its collapse in a more orderly fashion. In theory.
The rescue suggests to Blawgletter’s mind a delicacy that we don’t often associate with the federal government, especially when it deals with ordinary people. Small fry get to battle their creditors in court. If the problems grow too dire, they have to resort to the ugliest and messiest court of all, the bankruptcy one.
Why not Bear Stearns, too?