JP Morgan again tests its mettle as bailout bank of last resort. Or rather, a front for the Fed: JPM extended $87bn of financing to Lehman yesterday.
As Reuters reports:
JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) advanced $87 billion to Lehman on Monday to help clear and facilitate securities transactions with customers and clients of Lehman “to avoid disruption of financial markets,” according to documents filed in U.S. Bankruptcy Court for the Southern District of New York.
There isn’t much more detail. If it wasn’t clear already though, Lehman’s bankruptcy is sending shockwaves through the markets – many of which haven’t even begun to be felt on the surface yet.
That $87bn is a huge amount of money. Who knows what would have happened without it.
Stock market rallies begone.