[Capt. Tom]

JPMorgan has been balking at the deal in the absence of guarantees from the Federal Reserve that its liabilities would be limited, people involved in the talks said. JPMorgan was working with the Federal Reserve on Sunday afternoon to hash out exactly what liabilities would be guaranteed, said these people, who insisted on anonymity because they were not authorized to speak publicly about the talks.

Does this mean Joe taxpayer is taking a chance on the buyout? - tom

[Vince Ferrer]

Does this mean Joe taxpayer is taking a chance on the buyout? - tom

Here's your answer:

In addition to the financing the Federal Reserve ordinarily provides through its Discount Window, the Fed will provide special financing in connection with this transaction. The Fed has agreed to fund up to $30 billion of Bear Stearns’ less liquid assets.

JPMorgan Chase To Acquire Bear Stearns