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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.”


Crisis will leave UK brokers £625m worse off

Edeus’ managing director Alan Cleary has warned that the ongoing liquidity crisis could wipe £625m off the total income potential for advisers in the UK mortgage market.

Savills unveils strong 2007 results

Savills Private Finance has revealed a 16% increase in pre-tax profit in 2007. The brokerage also announced its revenue increased by 11% to £29.8m last year despite the market downturn. Mark Harris, managing director of SPF, says: “We continue to expand our business and now operate from 25 locations, including offices in Cardiff and Windsor.”

Bids reach £23.6bn for BoE’s £5bn offer

The Bank of England has seen bids totalling £23.6bn today for its offer of £5bn three-day funding to banks. The central bank offered the facility at the current interest rate of 5.25% to help bring down the overnight LIBOR rate. A Bank of England statement says: “This action is being taken in response to conditions […]

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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