Bear Stearns accepts emergency funding

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

JP Morgan will provide the necessary liquidity for the firm, which owns UK lender Rooftop Mortgages, in the next 28 days.

Only days after issuing a formal denial that it faced liquidity problems, Bear Stearns last week entered into talks with JP Morgan regarding a fi-nance package.

Alan Schwartz, president and chief executive officer of Bear Stearns, says: “This company has been the subject of many market rumours regarding its liquidity recently.

“We tried to confront and dispel these but amid the chatter, our liquidity position deteriorated significantly.”