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What is sternness?

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Anonymous

14y ago
Updated: 7/8/2023

Bear Sterns Companies Inc. was one of the "Big Five" investment banks / brokerages on Wall Street. It leveraged itself 40 to 1 (ie borrowed $40 for every $1 of its own) to play the derivatives market, and got caught in the financial collapse of 2008. Rather than allow Bear Sterns to declare bankruptcy (and possibly drag the rest of the country into depression), then-Treasury Secretary Henry Paulson arranged a shotgun wedding with JPMorgan Chase. Chase paid $250 million for Bear, its vault full of toxic paper, $30 billion in Federal loan guarantees, and first place in line for TARP boodle the next spring.

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Jessie Zieme

Lvl 10
2y ago

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