(NewsVisual, powered by IntellectSpace) -- Bear Stearns Cos (NYSE: BSC) is on the verge of collapse, and the Federal Reserve's report on the matter could mean more bad news for taxpayers.
Last Thursday the Federal Reserve estimated Bear Stearns' value after accepting JP Morgan's (NYSE: JPM) $28.9 billion loan used to buy the troubled firm as collateral.
However, thanks to falling markets that collateral is now worth only $28.8 billion, meaning that the $1.15 billion that JP Morgan agreed to take on as exposure is already being eaten into.
DealBreaker reported that the collateral has already experienced a 3.7% drop in the last couple months. Unless a major change occurs in the markets, these drops are likely to increase, leaving tax payers to foot the balance of this huge attempt at a turnaround.
NewsVisual created an IntellectSpace Knowledge Map illustrating how leadership links could add value to the firm's renewal efforts. Despite strong ties to major industry players, the huge blows that Bear Stearns has recently experienced may be beyond what the firm can handle on its own, which explains the need for JP Morgan and the Federal Reserve to step in.