Bear Stearns provides investment banking and brokerage services to a worldwide client base. Established in 1926, Bear Stearns was entered into a merger agreement with JP Morgan Chase, by the federal reserve in March, 2008.
Fast Facts:
- Stock symbol: BSC, NYSE
- Annual revenue (2007): 16.151 billion U.S.
- Founders: Joseph Bear, Robert Stearns, and Harold Mayer
- Year Established: 1923
- Industry: Banking
- Phone: 1-212-272-2000
- Fax: 1-212-272-4785
- HQ: New York City
- President and CEO: Alan D. Schwartz
- CFO: Samuel L. Molinaro Jr.
- Staff: 13,834
- Other key people: James E. Cayne, Chairman of the Board
- 1929: Survived stock market crash without laying off employees
- 1985: Went public
- 2005-07: "Most Admired Securities Firm" (Forbes)
Merger with JPMorgan Chase
Between June and August 2007, the firm attempted to engineer a bailout of $3.2 billion of debt holdings after its hedge funds collapsed. The attempt proved unsuccessful, and led to controversy and arbitration claims against the company. On March 14, 2008, with its stock price at $30 a share, the firm sought emergency financing to stave off insolvency, and on March 16, agreed to be purchased by JP Morgan Chase for $236 million, or $2 a share. Less than a year earlier, Bear Stearns' stock traded at $150 a share.
Bear Stearns Executives Before Government Committee
Why was Bears Stearns forced to merge with JP Morgan Chase?(1 Answer)
A:
because it would have otherwise filed for bankruptcy which forced it to merge because otherwise the firm would have ceased to operate...they were a top 10 player ...
Why did credit default swaps grow so quickly in 2008?(2 Answers)
A:
It was a combination of factors. First of all, credit default swaps were an extremely lucrative business when everything was going ok. Who would have thought that Lehman ...
