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JPMorgan Chase agreed Sunday to buy Bear Stearns for about $236m in shares, as the Fed cut its discount rate for direct loans to banks 25bp to 3.25% and created a special lending facility for primary dealers – two emergency moves aimed at stabilising financial markets. JPM’s deal, which had the backing of the Fed and US Treasury, ends Bear’s 85 years of independence and highlights the risks faced by banks in the credit crunch. JPMorgan said that on top of the loans extended to Bear on Friday, the Fed agreed to fund up to $30bn of Bear’s less liquid assets – alleviating the need for a fire-sale of mortgage-backed securities. Bear said Sunday it would not announce Q1 earnings on Monday, as scheduled, due to the JPMorgan deal. For more news and analysis, see FT.com’s in-depth report.