Fed funds Bear Stearns on liquidity fears

The Federal Reserve on Friday 14 March agreed to provide emergency funding to Bear Stearns, a troubled investment bank.

The New York Fed will fund the investment bank through its discount window by passing funds to JPMorgan, a bank, which has set up a secured loan facility with Bear Stearns, as the beleaguered bank does not have direct access to discount window funds.

The Federal Reserve said it had "voted unanimously to approve the arrangement announced by JPMorgan Chase and Bear Stearns this