Panel's Wallison says Bear Stearns' rescue sent the wrong signal:

09/1/2010 | Bloomberg

Peter Wallison of the Financial Crisis Inquiry Commission said JPMorgan Chase's rescue of Bear Stearns, a move that was facilitated by the government, signaled that regulators would not allow other companies to fail. "Participants in the market thought that all large firms, at least larger than Bear Stearns, would be rescued," Wallison said. "Companies probably didn't believe they had to raise as much capital as they might have needed because the government would ultimately rescue them, and fewer creditors were going to be worried about their capitalization."

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