INSTANT VIEW: JPMorgan provides Bear Stearns funding

NEW YORK (Reuters) - JPMorgan Chase & Co on Friday said it, along with the Federal Reserve Bank of New York, agreed to provide secured funding to Bear Stearns, as necessary, for up to 28 days.

KEY POINTS: * The Fed, through its discount window, will provide non-recourse, back-to-back financing to JPMorgan Chase, the commercial bank said. JPMorgan said it does not believe this transaction exposes its shareholders to any material risk. * JPMorgan Chase also said it is working with Bear Stearns on securing permanent financing or other alternatives for the company. * Alan Schwartz, president and chief executive officer of Bear Stearns, said: "Bear Stearns has been the subject of a multitude of market rumors regarding our liquidity. We have tried to confront and dispel these rumors and parse fact from fiction. * "Amidst this market chatter, our liquidity position in the last 24 hours had significantly deteriorated. We took this important step to restore confidence in us in the marketplace, strengthen our liquidity and allow us to continue normal operations." COMMENTS:

JUSTIN URQUHART STEWART, DIRECTOR AT 7 INVESTMENT

MANAGEMENT, LONDON:

"The Fed and everyone are taking action to make sure this one doesn't fail. Here is a big difference with Britain ... on how to handle a bank in difficulties. You actually organize your support before you actually go public, unlike Northern Rock.

"They are very keen to make sure this one doesn't go. Bear Stearns is too big an international name."

"There is obviously the concern (of more banks in trouble) but ... they will make sure there is a package to make sure this one is OK. I think they will let smaller one goes but big name like this internationally will absolutely not."

STEPHEN DOWDS, HEAD OF INTERNATIONAL EQUITIES, NORTHERN

TRUST:

This tells you we're not over the worst yet, and there are still some players out there who are vulnerable. We expect more transparency next week when we get results from the U.S. financial sector.

I don't think the central banks see themselves as there to support anyone and everyone who gets into trouble -- they're there to support the system."

MEHERNOSH ENGINEER, CREDIT STRATEGIST, BNP PARIBAS:

"This is not good. It seems all the counterparties to Bear may have pulled all the liquidity lines and therefore they were forced to go to the Fed. Therefore JP Morgan is a kind of a ghost intermediate entity."

"We're now back to 154 basis points on the iTraxx Europe index as markets have realized this is very bad news."

JAMES MCGLYNN, PORTFOLIO MANAGER, SUMMIT INVESTMENT

PARTNERS, SOUTHLAKE, TEXAS: