UPDATE: Bear Stearns (BSC) Slammed 49% On Severe Liquidity Crunch

UPDATE: Shares of Bear Stearns (NYSE: BSC) are now down 49% following news of a bailout from the New York Fed and JPMorgan. In its release, Bear Stearns noted their liquidity position in the last 24 hours had significantly deteriorated. The company cited a multitude of market rumors regarding the liquidity, which the company said it was unable to dispel.

Bear Stearns also announced that it is talking with JPMorgan Chase & Co. regarding permanent financing or other alternatives, but said it can make no assurance that any strategic alternatives will be successfully completed.

In a statement on the news, the Federal Reserve said, "The Federal Reserve is monitoring market developments closely and will continue to provide liquidity as necessary to promote the orderly functioning of the financial system. The Board voted unanimously to approve the arrangement announced by JPMorgan Chase and Bear Stearns this morning."

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