Bear Stearns

Bear Stearns

The Bear Stearns Companies, Inc. (former NYSE ticker symbol BSC) based in New York City, was a global investment bank and securities trading and brokerage firm, until its sale to JPMorgan Chase in 2008 during the global financial crisis and recession. Its main business areas, based on 2006 net revenue distributions, were capital markets (equities, fixed income, investment banking; just under 80%), wealth management (under 10%), and global clearing services (12%).

Bear Stearns was involved in securitization and issued large amounts of asset-backed securities, which in the case of mortgages were pioneered by Lewis Ranieri, "the father of mortgage securities". As investor losses mounted in those markets in 2006 and 2007, the company actually increased its exposure, especially the mortgage-backed assets that were central to the subprime mortgage crisis. In March 2008, the Federal Reserve Bank of New York provided an emergency loan to try to avert a sudden collapse of the company. The company could not be saved and was sold to JP Morgan Chase for $10 per share, a price far below its pre-crisis 52-week high of $133.20 per share, but not as low as the $2 per share originally agreed upon by Bear Stearns and JP Morgan Chase.

The collapse of the company was a prelude to the risk management meltdown of the Wall Street investment bank industry in September 2008, and the subsequent global financial crisis and recession. In January 2010, JPMorgan ceased using the Bear Stearns name.

Read more about Bear StearnsOverview, Financials, Subprime Mortgage Hedge Fund Crisis

Other articles related to "bear stearns, bear, bear stearn":

Lehman Brothers - Collapse - Causes - Short-selling Allegations
... attacks followed by false rumors contributed to both the collapse of Bear Stearns and Lehman Brothers ... that naked short selling contributed to the demise of both Lehman and Bear Stearns ... in financial stocks, including Lehman Brothers and Bear Stearns, and found "no evidence that stock price declines were caused by naked short selling" ...
United States Housing Market Correction - Major Downturn and Subprime Mortgage Collapse, 2007 - Subprime Mortgage Industry Collapse
... dollars of this toxic waste and whether or not they're in CDOs or Bear Stearns hedge funds matters only to the extent of the timing of the unwind ... Because while the Bear hedge funds are now primarily history, those millions and millions of homes are not ... in mortgage-backed securities, especially Bear Stearns, Lehman Brothers, Goldman Sachs, Merrill Lynch, and Morgan Stanley ...
Subprime Crisis Impact Timeline - 2008 - January 2008 To August 2008
... March 14 Bear Stearns gets Fed funding as shares plummet ... March 16 Bear Stearns is acquired for $2 a share by JPMorgan Chase in a fire sale avoiding bankruptcy ... The deal is backed by the Federal Reserve, providing up to $30B to cover possible Bear Stearn losses ...
History Of Private Equity And Venture Capital - Early History of Leveraged Buyouts (1955–1981) - KKR and The Pioneers of Private Equity
... Working for Bear Stearns at the time, Kohlberg and Kravis along with Kravis' cousin George Roberts began a series of what they described as "bootstrap" investments ... In the following years, the three Bear Stearns bankers would complete a series of buyouts including Stern Metals (1965), Incom (a division of Rockwood International, 1971), Cobblers Industries (1971) and ... By 1976, tensions had built up between Bear Stearns and Kohlberg, Kravis and Roberts leading to their departure and the formation of Kohlberg Kravis Roberts in ...
List Of Bank Runs - 2000s
... a bank run began on the securities and banking firm Bear Stearns ... While Bear Stearns was not an ordinary deposit-taking bank, it had financed huge long-term investments by selling short-maturity bonds (Asset Backed Commercial Paper), making it ... Credit officers of rival firms began to say that Bear Stearns would not be able to make good on its obligations ...

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