by Calculated Risk on 3/14/2008 09:38:00 AM

From the WSJ: Bear Stearns to Get Backing From J.P. Morgan, N.Y. Fed

J.P. Morgan Chase & Co. and the Federal Reserve Bank of New York have agreed to provide, as necessary, secured funding to Bear Stearns Cos. for an initial period of up to 28 days.

J.P. Morgan is also "working closely with Bear Stearns on securing permanent financing or other alternatives for the company."

It was just last Monday that former Bear Stearns CEO "Ace" Greenberg responded on CNBC to the rumor that Bear faced a liquidity crisis:

"It's ridiculous, totally ridiculous."

Not so ridiculous. The rumors were true.