Fed Pledges to Supply Cash - Martin Crutsinger

Bad news is steadily creeping closer home. Today the fifth largest bank lost more than half its listed quote on the Wall Street and ended by losing nearing 41%. President Bush came on air but did not use the dreaded "r" word. JP Morgan backed by the Feds supported Bear Stearns. "The plan announced Friday will supply secured funding to Bear Stearns for an initial period of 28 days, seeking to provide short-term relief for Bear Stearns." t

The Federal Reserve invoked a rarely used Depression-era procedure Friday to bolster troubled Bear Stearns Cos. and said it will provide even more help to combat a serious credit crisis.

The action won praise from the administration, with President Bush saying that Fed Chairman Ben Bernanke was "doing a good job under tough circumstances."

The Fed announcement came in a brief two-sentence statement that was issued as stocks were plunging on Wall Street over worries that a plan to ease a liquidity crisis at Bear Stearns Cos. might not work.

The plan announced Friday will supply secured funding to Bear Stearns for an initial period of 28 days, seeking to provide short-term relief for Bear Stearns. [for more click on the heading]