The Fed will help the bank, caught in the center of the mortgage crisis

Fed dollars (Fed) and JP Morgan provide financial assistance to leading U.S. banks Bear Stearns. It raised fears that the credit crisis will not go unnoticed by even the largest banks on Wall Street.

According to the BBC, funding will be provided to the bank for 28 days.

Bear Stearns was in the center erupted in the U.S. mortgage crisis, prompting talk of a shortage of liquidity at the bank.

"The operation to rescue Bear Stearns shows that the worst phase of the global credit crisis has not passed", - said the editor of the Economic Department, Robert Peston BBC.

After becoming aware of the allocation of aid, Bear Stearns shares fell 53%, their price was $ 28 per share.

In the Bear Stearns says he tried to dispel the disturbing market rumors and restore confidence in its ability to continue normal operation.

Topic: BBC