Bear Stearns Companies

Bear Stearns Companies was a major investment bank and financial firm founded in 1923, known for providing services like trading securities, investment advice, and managing hedge funds. It played a significant role in the financial industry, helping corporations and investors raise money and manage risk. However, during the 2008 financial crisis, Bear Stearns faced severe liquidity problems due to risky mortgage-backed securities, leading to a rapid decline in confidence. The U.S. government intervened, and it was sold to JPMorgan Chase at a discount to prevent broader economic damage. The firm’s collapse highlighted risks in the banking and investment sectors.