Bear Stearns

Bear Stearns was a major global investment bank and securities trading firm based in New York City. Founded in 1923, it became a key player in mortgage-backed securities and other financial products. However, during the 2007-2008 financial crisis, it faced severe liquidity problems due to heavy exposure to subprime mortgages. In March 2008, it was acquired by JPMorgan Chase in a government-backed deal to prevent its collapse. Bear Stearns' failure highlighted vulnerabilities in the financial system and contributed to the broader crisis, leading to significant regulatory changes in the financial industry.