The internationally active U.S. investment bank Bear Stearns, headquartered in Neuyork, faced a run in connection with the subprime crisis. The U.S. central bank propped up the floundering institution, which was then taken over by rival JP Morgan Chase in March 2008. At that time, Bear Stearns had 14,000 employees worldwide and also a branch in Frankfurt am Main. – Despite its position as a broker, Bear Stearns also maintained a deposit-taking business. The institution was a service provider for several hedge funds. It lent them capital and used the collateral deposited by the funds to reinvest itself. – Shortly after the Bear Stearns bankruptcy, the New York bank Lehman Brothers, which operates internationally and also has branches in Germany, was refused assistance; it went bankrupt in September 2008 with far-reaching consequences for German investors as well. – See individual case decision, Lehman bankruptcy, debt bomb, too big to fail principle.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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