The US Federal Reserve has cleared the way for JP Morgan Chase & Co to acquire troubled Bear Stearns’ bank holdings.

Worldwide markets recorded heavy losses today following the emergency bail-out of US investment bank Bear Stearns.

Stocks tumbled today after a plan to alleviate a liquidity crisis at Bear Stearns touched off concerns about the severity of credit troubles.

Wall Street showed signs of confidence in the credit markets today, surging higher in response to a pullback in Treasurys and an increase in borrowing by banks.

THE CAC 40 Index gained 27.35, or 0.5%, to 5692.45 in Paris. The SBF 120 Index also added 0.5%.

BANKS and brokerage firms in New Orleans say they’re faring better than before Hurricane Katrina caused a record $80 billion (€62.5bn) of damages along America’s Gulf Coast a year ago.

Oil prices reached a new high in New York and sent US stocks lower today, pushing the Dow Jones industrials back below 10,000.

Wall Street ended an erratic session with a minuscule loss today as investors were torn between concerns over rising interest rates and optimism about generally strong corporate earnings.

The dollar fell against the euro in New York yesterday after the Federal Reserve kept its target interest rate at a 45-year low and said it can be patient in keeping the rate slow to spur US job growth.

EUROPEAN stocks climbed after BNP Paribas SA agreed to buy Community First Bankshares Inc for $1.2 billion in cash.

Strong bank earnings pushed the Dow Jones industrial average and the Standard & Poor's 500 index to new 22-month highs.

BANK OF AMERICA has agreed to buy FleetBoston Financial Corp for $47 billion in stock, creating the second-biggest US bank and signalling a revival in corporate acquisitions.

Share prices closed moderately lower after a session that was unusually tranquil by recent standards and caused some optimists to ponder whether the recently chaotic market could be approaching a sustainable bottom, dealers said.

Four executives for a group of New Jersey metal trading companies have been charged with stealing more than $600m (€664) from banks worldwide.

Nine investment banks financed lucrative schemes that helped Enron, the failed US energy giant, appear to be a profit powerhouse up to its collapse, said lawyers who plan to add the banks to a shareholder lawsuit today.

Share prices were higher in early trade after changing direction several times in uncertain price action, as investors reviewed a new set of technology sector research notes and a defense industry takeover offer, dealers said.

Trading opened flat on the Nasdaq composite and slightly lower on the DJIA.

A federal judge has ordered Motorola Inc to pay a $300m guaranty that was collateral for an $800m loan granted to Iridium LLC, according to reports.

Net income fell 40% at JP Morgan Chase & Co in the first quarter compared with the same period a year earlier, but the results soundly beat analysts' expectations.