The Obituary
Founded in 1923, Bear Stearns survived the Great Depression without laying off staff and grew into the fifth-largest U.S. investment bank, its stock near $172 in early 2007. It was also among the most leveraged, deeply exposed to subprime mortgages through funds that began failing in 2007. When confidence evaporated in March 2008, lenders and clients fled within days, draining its liquidity in a classic run. Over one weekend, with Federal Reserve backing, JPMorgan Chase agreed to buy the firm — at first for $2 a share, later $10. It was the opening act of the 2008 financial crisis.
Worth remembering
- It was the fifth-largest U.S. investment bank, with a stock that traded near $172 a year before its sale.
- JPMorgan bought it for $10 a share with a Federal Reserve guarantee, the first domino of the 2008 crisis.
Sources
A graveyard tradition: leave a stone to show you came, and remembered.