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JP Morgan Buys Bear Stearns For $2 A Share With Backing From Federal Reserve

(CN) - In moves sure to provoke litigation, JP Morgan Chase agreed to buy Bear Stearns for $270 million in stock, or $2 a share - about 10 percent of the Bear Stearns' market price on Friday.

And the Federal Reserve announced a $30 billion loan to guarantee obligations and facilitate the takeover of Bear Stearns, which drove itself to ruin with sub-prime mortgage investments. A year ago, Bear Stearns shares sold at $170.

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