Bear Stearns was an American investment bank and securities trading and brokerage firm, founded on May 1, 1923, by Joseph Ainslie Bear, Robert B. Stearns, and Harold C. Mayer. Starting as an equity trading house, it grew to become a global firm offering services in capital markets, investment banking, wealth management, and global clearing. The company went public in 1985 and, by 2007, employed over 15,500 people worldwide. Bear Stearns survived the Stock Market Crash of 1929 without laying off employees and continued to expand its operations, becoming a well-known name among investors.
However, Bear Stearns collapsed during the 2008 financial crisis due to its significant exposure to risky mortgage-backed securities. As the subprime mortgage crisis unfolded, the company's involvement in securitization and asset-backed securities led to massive losses. In March 2008, the Federal Reserve Bank of New York intervened with an emergency loan, but the company could not be saved. Ultimately, Bear Stearns was sold to JPMorgan Chase for $10 per share, a fraction of its pre-crisis value. The collapse of Bear Stearns was a key event in the wider financial crisis, leading to increased scrutiny of financial regulations. JPMorgan Chase ceased using the Bear Stearns name in January 2010.
