Bear Stearns calls on emergency funds

US banking giant Bear Stearns has received emergency funding from JP Morgan Chase and the Federal Reserve.

JP Morgan will provide the necessary liquidity for the next 28 days. Bear Stearns owns UK lender Rooftop Mortgages.

Only four days after a formal denial of liquidity issues the bank has entered into talks with JP Morgan regarding permanent financing.

Alan Schwartz, president and chief executive officer of the Bear Stearns Companies, says: “Bear Stearns has been the subject of a multitude of market rumors regarding our liquidity. We have tried to confront and dispel these rumors and parse fact from fiction.

“Nevertheless, amidst this market chatter, our liquidity position in the last 24 hours had significantly deteriorated.

“We took this important step to restore confidence in us in the marketplace, strengthen our liquidity and allow us to continue normal operations.”

But the company warns that it can make no assurance that any strategic alternatives will be successfully completed.