Bear Stearns: A timeline of decline
So what ultimately led to the demise of one of Wall Street's top banks? While CEO Alan Scwartz is taking a lot of heat for the freefall of Bear Stearns, few can argue he was a sitting duck when he replaced embattled former CEO Jimmy Cayne in January. Below is a look at the company's last six months.
Sept. 27 – Bear Stearns in talks with Buffett
Oct. 17 – China bank to bid for Bear Stearns
Oct. 17 – Behind the Bear Stearns hedge fund fiasco
Oct. 24 – Is Citic the answer for Bear Stearns?
Nov. 15 – Who’s next? Jimmy Cayne, perhaps?
Nov. 29 – Bear Stearns joins the layoff parade
Dec. 19 – Feds looking at inside action at Bear Stearns fund
Dec. 20 – Rumor: Bear Stearns looking to replace Cayne
Jan. 8 – Cayne joins rogues list
Jan. 9 – The future of Bear Stearns
Jan. 10 – Can Bear Stearns be salvaged?
Jan. 11 – Fortress and Bear Stearns deal talks to revive soon?
Jan. 24 – No spate of outright bank failures expected
Feb. 15 – The credit outlook for banks
Feb. 21 – ALSO NOTED: Bear Stearns faces legal action over hedge funds
March 12 – ALSO NOTED: Rumors about Bear Stearns liquidity heat up
March 14 – What’s up with Bear Stearns
March 17 – Update: Bear Stearns finally falls
March 18 – JP Morgan bets big on Bear Stearns
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By Anonymous | Posted 10:34am | May 8, 2008
Ironic that a firm known for its clearing operations and due dilligence would fail to inform its hedge funds of a gathering storm. (And who couldn't see a massive real estate bubble stretching to the breaking point? Gives one pause.)
Perhaps it's a bit like the brilliant doctor who maldiagnosis himself - or the lawyer who represent himself in court. All the same, how could such a canny, savvy trading house get so overextended?
Perhaps they fell in love with overblown real estate operations and just went in too deeply -much like LTC Partners overextended themselves with alien issue gov't bond arbitrage.