Bear Stearns Bailout

The Bear Stearns bailout occurred in March 2008 during the financial crisis when the investment bank faced bankruptcy due to heavy losses from subprime mortgages. To prevent a collapse that could destabilize the financial system, the U.S. government, through the Federal Reserve, facilitated the sale of Bear Stearns to JPMorgan Chase at a deeply discounted price. The government also provided a loan to help cover potential losses, effectively shielding investors and maintaining financial stability. This event marked a significant step in the government's efforts to address the mounting crises in the banking and financial sectors.