Bear Stearns

Extracted Attributes

• Founded

  1923-05-01

• Founders

  Joseph Ainslie Bear, Robert B. Stearns, and Harold Mayer

• Industry

  Investment banking and Financial services

• Headquarters

  New York City, New York, United States

• Stock Symbol

  NYSE: BSC

• Total Assets

  $395 billion USD (at year-end 2007)

• Leverage Ratio

  36 to 1 (at year-end 2007)

• Acquisition Price

  $10 per share (final price paid by JPMorgan Chase)

• Peak Employee Count

  15,500 employees (reported in 2007)

• Pre-crisis High Stock Price

  $133.20 per share

Timeline

• Bear Stearns is founded as an equity trading house in New York City. (Source: Wikipedia)

  1923-05-01

• The firm opens its first branch office in Chicago. (Source: Case Study on Bear Stearns)

  1933-01-01

• Bear Stearns becomes a publicly traded company and opens its first international office in Amsterdam. (Source: Wikipedia)

  1985-01-01

• Fortune Magazine begins naming Bear Stearns the 'Most Admired' securities firm, a title held through 2007. (Source: AABRI)

  2005-01-01

• Bear Stearns notifies the Federal Reserve that it lacks sufficient funding to meet its financial obligations. (Source: Federal Reserve)

  2008-03-13

• The Federal Reserve Bank of New York provides an emergency loan to prevent a sudden collapse. (Source: Wikipedia)

  2008-03-14

• Bear Stearns agrees to be acquired by JPMorgan Chase for an initial price of $2 per share, later raised to $10. (Source: Wikipedia)

  2008-03-16

• JPMorgan Chase officially ceases using the Bear Stearns name. (Source: Wikipedia)

  2010-01-01

Bear Stearns

The Bear Stearns Companies, Inc. was an American investment bank, securities trading, and brokerage firm that famously failed during the 2008 financial crisis and the Great Recession. After its closure, it was subsequently sold to JPMorgan Chase. The company's main business areas before its failure were capital markets, investment banking, wealth management, and global clearing services, and it was heavily involved in the subprime mortgage crisis. In the years leading up to the failure, Bear Stearns was heavily involved in securitization and issued large amounts of asset-backed securities which were, in the case of mortgages, 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 to 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, however, and was sold to JPMorgan 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. The collapse of the company was a prelude to the 2008 financial crisis and the meltdown of the investment banking industry in the United States and elsewhere. In January 2010, JPMorgan ceased using the Bear Stearns name.

Web Search Results

• Bear Stearns - Wikipedia

  The Bear Stearns Companies, Inc. was an American investment bank, securities "Security (finance)") trading, and brokerage firm that famously failed during the 2008 financial crisis and the Great Recession. After its closure, it was subsequently sold to JPMorgan Chase. The company's main business areas before its failure were capital markets, investment banking, wealth management, and global clearing "Clearing (finance)") services, and it was heavily involved in the subprime mortgage crisis. [...] The Bear Stearns Companies, Inc. | Company type | Public | | Traded as | NYSE: BSC | | Industry | Investment services | | Founded | May 1, 1923; 102 years ago (1923-05-01) | | Founders | Joseph Ainslie Bear Robert B. Stearns | | Defunct | March 16, 2008; 17 years ago (2008-03-16) | | Fate | Went out of business as a result of the 2008 financial crisis and the Great Recession Acquired by JPMorgan Chase | | Successor | JPMorgan Chase | | Headquarters | New York City, New York, U.S. | | Key people | Alan Schwartz (former CEO) James Cayne (former chairman and CEO) David Robert Malpass (chief economist for the last six years before its failure) | | Products | Financial services Investment banking Investment management | [...] In 1985, Bear Stearns became a publicly traded company. It served corporations, institutions, governments, and individuals. The company's business included corporate finance, mergers and acquisitions, institutional equities, fixed income sales & risk management, trading and research, private client services, derivatives, foreign exchange and futures sales and trading, asset management, and custody services. Through Bear Stearns Securities Corp., it offered global clearing services to broker dealers, prime broker clients and other professional traders, including securities lending.

• The Fed - Bear Stearns, JPMorgan Chase, and Maiden Lane LLC

  Background In March 2008, The Bear Stearns Companies, Inc. (Bear Stearns) was one of the largest securities firms in the country, with reported total consolidated assets of nearly $400 billion. Bear Stearns engaged in a broad range of activities, including investment banking, securities and derivatives trading and clearing, brokerage services, and originating and securitizing commercial and residential mortgage loans. Financial conditions for the firm deteriorated markedly between mid-January and mid-March 2008. On March 13, 2008, Bear Stearns notified the Federal Reserve that it expected that it would not have enough funding or liquid assets to meet its financial obligations the following day and would not be able to find a private-sector source of alternative financing. [...] The imminent insolvency of Bear Stearns, the large presence of Bear Stearns in several important financial markets (including, in particular, the markets for repo-style transactions, over-the-counter derivative and foreign exchange transactions, mortgage-backed securities, and securities clearing services), and the potential for contagion to similarly situated firms raised significant concern that the stability of financial markets would be seriously disrupted if Bear Stearns were suddenly unable to meet its obligations to counterparties, and the extension of credit allowed for an orderly resolution of the firm.

• [PDF] SA19007 Bear Stearns—the Decline and Fall of the Storied ... - aabri

  SA19007 Bear Stearns—the Decline and Fall of the Storied Investment Bank Michael Hughes Rachel Gaster Alex Warr Bear Stearns & Company was a titan of Wall Street until its sudden demise in 2008. After nearly 85 years in business, the financial crisis of 2006-2008 finally struck the death knell for the storied firm. Established in 1923, Bearn Stearns grew to employ over 15,500 people, worldwide by 2007. Fortune Magazine selected Bearn Stearns as the "Most Admired" securities firm in its 2005–2007 "America's Most Admired Companies" survey. Fortune also ranked Bearn Stearns as the second overall in the securities firm category. The company was unique in that it consisted of primarily Jewish traders who loved to play bridge. They developed the Bear Stearns mission to simply making money, which

• [PDF] Case Study on BEAR STEARNS - Repository CRMS Indonesia

  This document is based on information that was in the public domain at the times mentioned or which became public after the resolution of the issues. It does not include information confidential to the financial institution involved. BEAR STEARNS William Ryback 2 TABLE OF CONTENTS 1. INTRODUCTION a. Overview 3 b Key Issues 4 c Learning Objectives 4 d Core Principles 4 2. CASE NARRATIVE a The Company 5 b The culture 5 c The Problem 7 d The Regulators 8 e The Last Week 9 BEAR STEARNS William Ryback 3 INTRODUCTION Overview Bear Stearns was a large investment bank, securities trader, and brokerage firm operating globally with headquarters in New York. The firm had been in operation for 85 years when its outsized position in subprime mortgages raised questions from investors, clients, and [...] exchange futures and trading, asset management and custody services. Through a major subsidiary, Bear Stearns Securities Corporation, it conducted global clearing services to broker dealers and professional traders and was a major security lender. By year-end 2007 its balance sheet showed $395 billion in assets supported by $11.1 billion in equity – a leverage ratio of around 36 to 1. Notional contracts amounted to around $13.4 trillion in derivative financial instruments of which around 14% were in listed futures and option contracts. Bear Stearns was the fifth largest investment bank in the United States. THE CULTURE Bear Stearns had a history of aggressive market behavior. In the early days, Bear was a heavy investor in equities taking advantage of the thriving investment climate in [...] Headcount exceeded 15,000. The company was founded as an equity trading house in 1923 by Joseph Bear, Robert Stearns, and Harold Mayer. The firm survived the Wall Street crash of 1929 and opened its first branch office in Chicago in 1933 and later established itself in 10 other U.S. cities. It opened an overseas office in 1985 in Amsterdam and eventually expanded to 12 locations covering Europe, Asia, and South America. Its primary customers included corporations, financial institutions, hedge funds, governments, and individuals. The company’s business included corporate finance, mergers and acquisitions, institutional equities and fixed income sales, trading and research, private wealth management services, derivatives, foreign exchange futures and trading, asset management and custody

• About Us - Bear Stearns Companies

  The firm has been revitalized by a partnership with a group of influential investment bankers and a select group of private investors. The New Bear Stearns continues the legacy of forward thinking and global investment banking reach across most major financial markets of the world. We provide specialized financial services for exclusive corporations, governments, financial institutions and select private individuals across a wide range asset of management and investment banking products. The New Bear Stearns is committed to leading change initiatives to improve economic practices. Bear Stearns will be at the forefront of restructuring those practices for the benefit of humanity and the environment. The New Bear Stearns maintains regional offices on five continents. [...] By 1948 international expansion began and through the 50’s became one of the originators of block trading strategies. Throughout the 1960’s Bear Stearns became a household name among investors and was highly successful in pioneering the retail business model we know today developing into a financial powerhouse that continued to make history in the trendsetting strategies and key investments that they developed. By the 1980’s Bear Stearns had become a billion dollar powerhouse and grew into a publicly traded company in 1985 becoming globally recognized as a dominant full service investment brokerage and investment banking firm specializing in capital markets, securities trading and lending, wealth management and global clearing services until it was acquired by a global Investment Bank and [...] +1 (888) 819-0989 info@bearstearnscompanies.com ## ABOUT US ### Bear Stearns Is The New Leader In Sustainable Growth The original Bear Stearns was started on May 1, 1923 as a US based Equity Trading house with a partnership between Joseph A. Bear, Robert B. Stearns and Harold C. Mayer. The company thrived in the booming post war capital expansion surge bringing investment options to the masses. Bear Stearns showed its depth and resolve by not only surviving the Great Depression but avoiding the devastating layoffs and closures that were so common during that period. Bear Stearns was instrumental in making history by

• Image

  

• Country

  United States

• Employees

  13,500

• Instance Of

  Q4830453

• Headquarters

  New York City

• Inception Date

  1/1/1923