Bear Stearns
Type	Public NYSE: BSC
Founded	1923
Headquarters	New York City, USA
Key people	Alan Schwartz, CEO
Industry	Investment services
Products	Financial Services Investment Banking Investment Management
Revenue	▼ US $16.151 billion (11/2007)
Net income	▼ US $ 233 million (11/2007)[1]
Employees	13,566 (11/2006)
Website	www.bearstearns.com

The Bear Stearns Companies, Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., one of the largest global investment banks and securities trading and brokerage firms in the world. The main business areas, based on 2006 net revenue distributions, are: capital markets (equities, fixed income, investment banking; just under 80%), wealth management (under 10%) and global clearing services (12%). Image File history File links Bear_Stearns_Logo. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Image File history File links This is a lossless scalable vector image. ... New York, New York and NYC redirect here. ... Motto: (traditional) In God We Trust (official, 1956–present) Anthem: The Star-Spangled Banner Capital Washington, D.C. Largest city New York City Official language(s) None at the federal level; English de facto Government Federal Republic  - President George W. Bush (R)  - Vice President Dick Cheney (R) Independence - Declared - Recognized... Alan Schwartz is the President and Co-Chief Operating Officer of The Bear Stearns Companies, Inc. ... Invest redirects here. ... Financial services is a term used to refer to the services provided by the finance industry. ... Investment banks help companies and governments (or their agencies) raise money by issuing and selling securities in the capital markets (both equity and debt). ... Investment management is the professional management of various securities (shares, bonds etc) assets (e. ... For the tax agency in Ireland of the same name, see Revenue Commissioners. ... USD redirects here. ... Net income is equal to the income that a firm has after subtracting costs and expenses from the total revenue. ... USD redirects here. ... This article is about work. ... A website (alternatively, Web site or web site) is a collection of Web pages, images, videos or other digital assets that is hosted on one or several Web server(s), usually accessible via the Internet, cell phone or a LAN. A Web page is a document, typically written in HTML... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... For security (collateral), the legal right given to a creditor by a borrower, see security interest A security is a fungible, negotiable instrument representing financial value. ... A Stock broker sells or buys stock on behalf of a customer. ... The capital market is the market for long-term loans and equity capital. ... Wealth Management is a term that originated in the 1990s in US with the Broker Dealers, Banks, and Insurance Companies. ... In banking and finance, clearing denotes all activities from the time a transaction is made until it is finally settled (see settlement). ...

On March 16, 2008, under the supervision of the Federal Reserve, the company signed a merger agreement with JP Morgan Chase under which JPMorgan Chase would assume the counterparty risk and exercise management control over Bear Stearns pending shareholder approval. The Federal Reserve issued a non-recourse loan of $30 billion which would cover any losses in Bear Stearns' investments in mortgage-backed securities and exotic investment paper,^{[citation needed]} with collateral to be managed by BlackRock.^[2] One week later, JP Morgan Chase increased the value of its purchase stock swap from $2.00/share to $10.00/share and reduced the loan from the Fed by $1 billion. is the 75th day of the year (76th in leap years) in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... The Federal Reserve System is headquartered in the Eccles Building on Constitution Avenue in Washington, DC. The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States. ... J.P. Morgan Chase & Co. ... It has been suggested that Non-recourse debt be merged into this article or section. ... BlackRock Inc. ... A stock swap is a business takeover in which the acquiring company uses its own stock to pay for the acquired company. ...

About

The company was founded in 1923 by Joseph Bear, Robert Stearns, and Harold Mayer as an equity trading house. It serves corporations, institutions, governments and individuals. The company's business includes corporate finance, mergers and acquisitions, institutional equities and fixed income sales, trading and research, private client services, derivatives, foreign exchange and futures sales and trading, asset management and custody services. Through Bear Stearns Securities Corp., it offers global clearing services to broker dealers, prime broker clients and other professional traders, including securities lending. Bear Stearns is also known for one of the most widely read market intelligence pieces on the street, known as the "Early Look at the Market - Bear Stearns Morning View."

Bear Stearns' World Headquarters is located at 383 Madison Avenue, between E. 46th Street and E. 47th Street in Manhattan. The company currently employs more than 15,500 people worldwide. The firm is headquartered in New York City with offices in Atlanta, Boston, Chicago, Dallas, Denver, Houston, Los Angeles, Irvine, San Francisco, San Juan, Whippany, NJ and St. Louis. Internationally the firm has offices in London, Beijing, Dublin, Hong Kong, Lugano, Milan, São Paulo, Mumbai, Shanghai, Singapore, and Tokyo. 383 Madison at night 383 Madison Avenue, or the Bear Stearns Building, is an office building in New York City located between 46th and 47th Streets. ... This article is about the borough of New York City. ... New York, New York and NYC redirect here. ... Atlanta redirects here. ... Boston redirects here. ... For other uses, see Chicago (disambiguation). ... Dallas redirects here. ... Denver redirects here. ... Houston redirects here. ... Flag Seal Nickname: City of Angels Location Location within Los Angeles County in the state of California Coordinates , Government State County California Los Angeles County Mayor Antonio Villaraigosa (D) Geographical characteristics Area     City 1,290. ... Irvine may refer to: // William Irvine (Scotland) (c. ... San Francisco redirects here. ... For other uses, see San Juan. ... Whippany is a town in Morris County, New Jersey. ... Nj can stand for: nj (letter), the 20th letter of the Albanian alphabet Nj, Њ or Nje letter, the 17th letter of the Cyrillic alphabet in Serbian language The two-letter abbreviation for the state of New Jersey, United States Napierville Junction Railway (AAR reporting mark NJ) The pen name of... The Gateway Arch, shown here behind the Old Courthouse, is the most recognizable part of the St. ... This article is about the capital of England and the United Kingdom. ... Peking redirects here. ... For other uses, see Dublin (disambiguation). ... Lake Lugano Lugano (Latin language: Luganum) is a town (130. ... Type Anti-tank Nationality Joint France/Germany Era Cold War, modern Launch platform Individual, Vehicle Target Vehicle, Fortification History Builder MBDA, Bharat Dynamics (under license) Date of design 70s Production period since 1972 Service duration since 1972 Operators 41 countries Variants MILAN 1, MILAN 2, MILAN 2T, MILAN 3, MILAN... This article is about the city. ... , Bombay redirects here. ... For other uses, see Shanghai (disambiguation). ... For other uses, see Tokyo (disambiguation). ...

In 2005-2007, Bear Stearns was recognized as the "Most Admired" securities firm in Fortune’s "America's Most Admired Companies" survey, and second overall in the security firm section. The annual survey is a prestigious ranking of employee talent, quality of management and business innovation. This was the second time in the past three years that Bear Stearns had achieved this "top" distinction. Fortune magazine is Americas second longest-running business magazine after Forbes magazine. ...

Subsidiaries

Bear Stearns also conducts business through other wholly owned subsidiaries, including Bear Stearns Global Lending Limited, Custodial Trust Company, Bear Stearns International Limited, Bear Stearns Bank, Bear Stearns Financial Products Inc., Bear Stearns Capital Markets Inc., EMC Mortgage Corporation, Bear Stearns Mortgage Capital Corporation, Bear Wagner, Bear Stearns Credit Products Inc., Bear Energy LP, Bear Stearns Forex Inc., Bear Stearns Asset Management Inc and Rooftop Mortgages. Bear Stearns also holds an 80% interest in Bear Measurisk.

Financials

As of November 31, 2006, the company had total capital of approximately $66.7 billion and total assets of $350.4 billion. According to the April 2005 issue of Institutional Investor magazine, Bear Stearns was the seventh largest securities firm in terms of total capital.

Major shareholders

The largest Bear Stearns shareholders as of December 2007 are^[3]:

• Barrow Hanley Mewhinney & Strauss - 9.73% of the company
• Joseph C. Lewis - 9.36%
• Morgan Stanley - 5.37%
• James E. Cayne (Bear Stearns Chairman) - 4.94% (as of 2/14/08)^[4]
• Legg Mason Capital Management - 4.84%*
• Mr. Aglamaz from Switzerland - 0.87% (as of 2/20/08)^[5] The funds were invested in thinly traded collateralized debt obligations found to be worth less than their mark-to-model value. Merrill Lynch seized $850 million worth of the underlying collateral but only was able to auction $100 million of them. The incident sparked concern of contagion as Bear Stearns may be forced to liquidate its CDOs, prompting a mark-down of similar assets in other portfolios.^[6][7] Richard A. Marin, a senior executive at Bear Stearns Asset Management responsible for the two hedge funds, was replaced on June 29 by Jeffrey B. Lane, a former Vice Chairman of rival investment bank, Lehman Brothers.^[8]

During the week of July 16, 2007, Bear Stearns disclosed that the two subprime hedge funds had lost nearly all of their value amid a rapid decline in the market for subprime mortgages. Joe Lewis (born London) is a British billionaire who lives in Lyford Cay, Bahamas. ... Morgan Stanley (NYSE: MS) is one of the largest and the most reputed investment banks headquartered in New York City. ... For other subjects with the same abbreviation, see CDO. In financial markets, collateralized debt obligations (CDOs) are a type of asset-backed security and structured credit product. ... In accounting and finance, mark to market is the act of assigning a value to a position held in a financial instrument based on the current market price for that instrument or similar instruments. ... Richard A. Marin (born ca. ... Lehman Brothers Holdings Inc. ... is the 197th day of the year (198th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ...

On August 1, 2007, investors in the two funds took action against Bear Stearns and its top management. The law firms of Jake Zamansky & Associates and Rich & Intelisano both filed arbitration claims with the National Association of Securities Dealers alleging that Bear Stearns misled investors about its exposure to the funds. This was the first legal action made against Bear Stearns, though there have been several others since then.^[9] Co-President Warren Spector was forced to resign on August 5, 2007, as a result of errant trades that led to the collapse of two hedge funds backed primarily by subprime loans. A September 20 report in the New York Times noted that Bear Stearns posted a 61 percent drop in net profits due to their hedge fund losses.^{[citation needed]} With Samuel Molinaro's November 15 revelation that Bear Stearns were writing down a further $1.2 billion in mortgage-related securities and would face their first loss in 83 years, Standard & Poor's downgraded their credit rating from AA to A.^[10] is the 213th day of the year (214th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... Jacob (Jake) H. Zamansky is a securities arbitration attorney based in New York, NY. After working for both the Federal Trade Commission as a federal prosecutor, and Skadden, Arps, Slate, Meagher & Flom, Zamansky opened his own firm in 1998. ... NASD executive office on K Street in downtown Washington, D.C. The National Association of Securities Dealers, also known as the NASD, is the regulatory body primarily responsible for the regulation of persons involved in the securities industry in the United States. ... is the 217th day of the year (218th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 263rd day of the year (264th in leap years) in the Gregorian calendar. ... The New York Times is an internationally known daily newspaper published in New York City and distributed in the United States and many other nations worldwide. ... is the 319th day of the year (320th in leap years) in the Gregorian calendar. ... Publications Standard & Poors publishes a weekly (48 times a year) stock market analysis newsletter called The Outlook, which is issued both in print and online to subscribers. ... A credit rating assesses the credit worthiness of an individual, corporation, or even a country. ...

On March 14, 2008, JPMorgan Chase, in conjunction with the Federal Reserve Bank of New York, provided a 28 day emergency loan to Bear Stearns in order to prevent the inevitable market crash that would result from Bear Stearns going insolvent.^[11] is the 73rd day of the year (74th in leap years) in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... JPMorgan Chase (NYSE: JPM) is one of the oldest financial services firms in the world. ... The Federal Reserve Bank of New York is the most important of the twelve Federal Reserve Banks of the United States. ...

On March 16, 2008, Bear Stearns signed a merger agreement with JP Morgan Chase in a stock swap worth $2 a share, through which both the shareholders and employees were decimated at the expense of maintaining an orderly market for the greater good. In addition, the Federal Reserve agreed issue a non-recourse loan to JP Morgan Chase thereby assuming the risk of Bear Stearns less liquid assets. This represents a staggering loss, in league with that of now infamous Enron, as its stock had once traded at $172 a share as late as January 2007, and $93 a share as late as February 2008. J.P. Morgan Chase & Co. ... A stock swap is a business takeover in which the acquiring company uses its own stock to pay for the acquired company. ... J.P. Morgan Chase & Co. ... Enron Creditors Recovery Corporation (formerly Enron Corporation) (former NYSE ticker symbol: ENE) was an American energy company based in Houston, Texas. ...

On March 20, 2008, Securities and Exchange Commission Chairman Christopher Cox said the collapse of Bear Stearns was due to a lack of confidence, not a lack of capital. Cox noted that Bear Stearns's problems escalated when rumors spread about its liquidity crisis which in turn eroded investor confidence in the firm. "Notwithstanding that Bear Stearns continued to have high quality collateral to provide as security for borrowings, market counterparties became less willing to enter into collateralized funding arrangements with Bear Stearns," said Cox. Bear Stearns' liquidity pool started at $18.1 billion on March 10 and then plummeted to $2 billion on March 13. Ultimately market rumors about Bear Stearns' difficulties became self-fulfilling, Cox said. The Securities and Exchange Commission, commonly referred to as the SEC, is the United States governing body which has primary responsibility for overseeing the regulation of the securities industry. ... Charles Christopher Cox (born October 16, American politician, Republican member of the United States House of Representatives since 1989, representing the 48th District of California. ...

^[12]

On March 24 2008, a class action lawsuit was filed on behalf of shareholders, challenging the terms of JPMorgan’s recently announced acquisition of Bear Stearns. ^[13] In law, a class action is an equitable procedural device used in litigation for determining the rights of and remedies, if any, for large numbers of people whose cases involve common questions of law and fact. ...

Notable current and former employees

Business

• Jeffrey Epstein—private investor
• John D. Howard—private equity manager
• Jerome Kohlberg, Jr., Henry Kravis and George R. Roberts—founders of Kohlberg Kravis Roberts & Co.
• Sanford I. Weill—former chairman and CEO of Citigroup
• Jay P. Trevor— President and CEO of J&T Development LLC, an influential real estate development firm providing affording housing in New Orleans post-Hurricane Katrina.
• Gerald Schwartz—Chairman and CEO of Onex Corporation
• Christopher Gardner—CEO of the brokerage firm Gardner Rich & Co, and author of the memoir The Pursuit of Happyness, being the basis for a 2006 film of the same name.
• John A. Mulheren—financier and philanthropist, CEO of Bear Wagner Specialists (acquired by Bear Stearns in 2001) from 1991 until his death in 2003.
• Carleton A. Holstrom —CFO from 1977 to 1987, took Bear Stearns public in 1985.
• Dana Telsey—former Bear Stearns Sr. Managing Director, Retail Analyst, and regular CNBC guest retail commentator; now CEO of Telsey Advisory Group^[14]

Jeffrey Epstein (born 1953 in Coney Island, New York) is a reclusive American billionaire financier and philanthropist. ... John D. Howard is CEO of Bear Stearns Merchant Banking Group and Senior Managing Director of Bear Stearns and Company. ... Jerome Kohlberg, Jr. ... Henry R. Kravis (born 1944) is an American business financier and investor, notable for co-founding and heading the leading private equity firm, Kohlberg Kravis Roberts & Co. ... George R. Roberts (1945-) is a financier and was one of the founders of Kohlberg Kravis Roberts & Co. ... Kohlberg Kravis Roberts & Co (commonly referred to as KKR) is a New York City-based private equity firm that focuses primarily on late stage leveraged buyouts. ... Sanford I. Weill, commonly known as Sandy Weill (born March 16, 1933) is a banker, financier and philanthropist. ... Citigroup Inc. ... NOLA redirects here. ... This article is about the Atlantic hurricane of 2005. ... Gerald Schwartz, born c. ... Onex Corporation is a Toronto based investment firm. ... Christopher Gardner Christopher Gardner (born February 9, 1954 in Louisiana) is a self-made millionaire and entrepreneur. ... Gardner Rich & Co LLC is a private stock brokerage firm founded by Chris Gardner in 1987 after he was homeless for several years. ... For the famous phrase from which the title derives, see Life, liberty and the pursuit of happiness. ... John A. Mulheren, Jr. ... Financier (IPA: /ˌfi nãn ˈsjei/) is an elegant term for a person who handles large sums of money, usually involving money lending, financing projects, large-scale investing, or large-scale money management. ... A philanthropist is someone who engages in philanthropy; that is, someone who donates his or her time, money, or reputation to a charitable cause. ... “Chief executive” redirects here. ... “Chief executive” redirects here. ... IPO redirects here. ... This article is about CNBC U.S., the business news channel in the U.S.. For other uses, see CNBC (disambiguation). ...

Politics and public service

• Aída Álvarez—Administrator of the U.S. Small Business Administration (1997–2001)
• Carol Bellamy—Executive Director of the United Nations Children's Fund (1995–2005)
• Raymond W. Kelly—Commissioner of the New York City Police Department (1992–1994; 2002–present)

Aída Álvarez (born 1950 in Aguadilla, Puerto Rico) is the first Hispanic woman and Puerto Rican to hold a position in a Presidents Cabinet. ... The Small Business Administration (SBA) is a United States government agency that provides support to small businesses. ... Carol Bellamy, (born January 14, 1942), is the President and CEO of World Learning, and President of its School for International Training. ... UNICEF Flag The United Nations Childrens Fund (or UNICEF) was created by the United Nations General Assembly on December 11, 1946 to provide emergency food and healthcare to children in countries that had been devastated by World War II. In 1953, UNICEF became a permanent part of the United... Raymond Walter Kelly (born September 4, 1941) is the current Commissioner of the New York City Police Department (NYPD) and the first person to hold the post for two nonconsecutive tenures. ... NYPD redirects here. ...

Other

• Jon Favreau—comedian/actor/director
• Sidney Hertzberg—basketball player
• Lawrence Kudlow—economic commentator
• Bill Fischetti—investment banker

Jonathan K. Favreau (born on October 19, 1966) is an American actor and director. ... Sidney Sonny Hertzberg (born July 29, 1922 in Brooklyn, New York - died July 24, 2005 in Woodmere, New York) was a former pro basketball player. ... Lawrence (Larry) Kudlow (born August 19, 1947), is an American conservative, supply-side economics enthusiast and television personality. ... William Fischetti a. ...

Controversy

On March 16, 2008, the company signed a merger agreement with JP Morgan Chase for $2 per share of its own stock. is the 75th day of the year (76th in leap years) in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... J.P. Morgan Chase & Co. ...

The merger agreement, which refers to JPMorgan as "Parent," contained certain clauses designed to lock the agreement in, preventing any decision by the shareholders to the contrary. Notably, clause 6.10 provides that if the shareholders of Bear Stearns ("Company") vote against this two-dollar deal, "each of the parties shall in good faith use its reasonable best efforts to negotiate a restructuring of the transaction provided for herein ... and to resubmit the transaction to Company's shareholders for approval, with the timing of such resubmission to be determined at the reasonable request of Parent."^{[citation needed]}

See also

• Primary dealers

Primary dealers are banks or brokerage firms who may trade directly with the Federal Reserve System. ...

References

External links

• Bear Stearns Home Page

Data

• Bear Stearns Companies Inc. Summary
• Bear Stearns Companies Inc. Company Profile