Entries tagged "financial system"
In The Deal NewsWeekly Gene Colter of Peppercom, a New York-based communications firm, analyzes the lesson of the Bear bailout, and why moral hazard is here to stay. The scariest lesson from the Bear Stearns Cos. meltdown? Moral hazard has become the premier business model on Wall Street, and we're stuck with it. Future accounts likely will hold that the Federal Reserve and other authorities did well to facilitate J.P. Morgan Chase & Co.'s fire-sale acquisition of Bear and prevent damage to the entire financial system. But the larger implications for the marketplace give pause: Do we really want our...
