WASHINGTON - Sen. Charles Grassley, R-Iowa, last week said he plans to look into the Federal Reserve's recent action to extend a $30 billion guaranty of Bear, Stearns & Co.'s assets as part of a deal for the bank to be acquired by JPMorgan Chase & Co.

"I've instructed my staff to delve into the details of the deal," said Grassley, who is the ranking Republican member of the Senate Finance Committee. "I want to understand what the downside risk for the taxpayer is and any upside potential. I've asked staff to compare this action to recent actions by Treasury and/or the Fed to intervene in financial troubles."

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.