The Bear Stearns (BSC) mess is weighing on the dollar and financial exchange traded funds (ETFs).
The investment bank sought and received emergency funding today from the federal government and JPMorgan Chase & Co., reports the Associated Press. The trouble began when the firm realized it wasn’t going to be able to keep up with demand from lenders and others who were trying to get their cash back.
The CEO said the bailout would allow the company to "get back to business as usual."
Does "business as usual" include the impending launch of their actively managed ETF – the first in the industry? It was slated to begin trading on March 18, but we wouldn’t be surprised if it got moved to the back burner while the companies fries some bigger fish.
Meanwhile, The Associated Press reports that the dollar tumbled further amid the trouble, trading at record lows against the euro.
Financial ETFs weren’t faring much better in intraday trading, either:
- iShares Dow Jones US Financial Services (IYG)
- iShares S&P Global Financials (IXG)
- Regional Bank HOLDRS (RKH)
- Financial Select Sector SPDR (XLF)
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.