Sunday, July 06, 2008

Bear Sterns

I thought this article on the demise of Bear Sterns was fascinating. The conspiracy aspects seem a bit far-fetched, and if actually true means that virtually the same thing could happen to any significantly leveraged investment bank. But the story of how it all came about it pretty amazing.


On Monday, March 10, the rumor started: Bear Stearns was having liquidity problems. In fact, the maverick investment bank had around $18 billion in cash reserves. But soon the speculation created its own reality, and the race was on to keep Bear’s crisis from ravaging Wall Street. With the blow-by-blow from insiders, Bryan Burrough follows the players—Bear’s stunned executives, trigger-happy reporters at CNBC, a nervous Fed, a shadowy group of short-sellers—in what some believe was the greatest financial scandal in history.


No comments: