Federal Reserve Funding For Bear Stearns Challenged

Law360, New York (March 17, 2008, 12:00 AM EDT) -- In a challenge filed Saturday, fair-lending group Inner City Press/Community on the Move argued that the U.S. Federal Reserve Board's move to shore up beleaguered brokerage house Bear Stearns with J.P. Morgan Chase & Co. was illegal.

ICP submitted a challenge and Freedom of Information Act petition to the Board of Governors of the Federal Reserve on Saturday.

The Federal Reserve's speedy approval of a Bear Stearns bailout was “anti-competitive, contrary to the public interest, and a violation of the FRB's duties, and, by the way,...
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