Bear Stearns

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Dictionary Says

Definition of 'Bear Stearns '

An investment bank located in New York City that collapsed during the subprime crisis in 2008. The collapse of Bear Stearns was the result of the company's exposure to collateralized debt obligations (CDOs) and other securitized debt markets, which it had become overleveraged in. The company was subsequently sold to JP Morgan Chase at a fraction of its previous market capitalization.
Investopedia Says

Investopedia explains 'Bear Stearns '

The illiquidity that Bear Stearns faced due to its exposure to securitized debt also exposed troubles at other investment banks. Many of the biggest banks were also heavily-exposed to this sort of investment. Financial portfolios heavy with toxic debt were one cause of the global financial crisis of 2008.

Articles Of Interest

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    Investing In Securitized Products

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  2. CDOs And The Mortgage Market

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  3. These Financial Products Are Too Complex For The Average Joe

    Structured financial products are so elaborate that investors are unable to assess costs and risk.

  4. The Fall Of The Market In The Fall Of 2008

    How did America's strong economy tumble so quickly? Find out here.

  5. Collateralized Debt Obligations: From Boon To Burden

    CDOs were to be Wall Street's boon - instead they went bust. Find out what went wrong.

  6. Subprime Lending: Helping Hand Or Underhanded?

    These loans can spell disaster for borrowers, but that doesn't mean they should be condemned.

  7. Subprime Is Often Subpar

    Proceed with caution when considering these short-term, high-interest mortgages.

  8. Who Is To Blame For The Subprime Crisis?

    From lenders to buyers to hedge funds, it appears everyone has blood on their hands.

  9. How Will The Subprime Mess Impact You?

    The subprime collapse could mean doom and gloom for housing, equities and the overall economy.

  10. The Fuel That Fed The Subprime Meltdown

    Take a look at the factors that caused this market to flare up and burn out.
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