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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.”

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Dear Delia…

Dear Delia, Jason wants to buy a property valued at £300,000 and has a mortgage arranged for £120,000. But with exchange and completion just two weeks away the buyer for his existing property pulled out. Jason has a £70,000 mortgage on his existing property, which is worth £250,000, and was using the equity from the sale as a deposit for the new purchase. He earns £65,000 a year as a management consultant. He wants to buy the house so how should he proceed?

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