To: John Pitera who wrote (9157 ) 3/23/2008 4:10:48 AM From: John Pitera Read Replies (2) | Respond to Goldman, Lehman Rating Outlook Cut to Negative by S&P (Update3) credit-rating outlook cut to negative by Standard & Poor's, which said Wall Street banks' profits may fall as much as 30 percent in the coming year. open a lending facility for brokers and provide financial support for JPMorgan Chase & Co.'s emergency takeover of Bear Stearns Cos. ``mitigates liquidity concerns,'' S&P said. ``Nonetheless, we see some possibility, were there to be persisting capital markets turmoil and sharply weakening economic conditions, that financial performance could deteriorate significantly.'' The collapse of Bear Stearns ranks along with Drexel Burnham Lambert Inc. as the biggest in Wall Street history. $171.51 last year, closed at $30 two days before the firm was forced to accept JPMorgan's terms or face bankruptcy, after customers and lenders abandoned the broker because of concern about a cash shortage. The Fed agreed to provide as much as $30 billion to JPMorgan in order to get the deal done. ``takes the liquidity issue off the table,'' and the company's shares surged 46 percent the next day, when it reported earnings. The Primary Dealer Credit Facility, The Fed decided to become the lender of last resort to the 20 primary dealers of government debt two days after providing emergency financing for Bear Stearns.
