JPMorgan Chase arranged the 2008 rescue of Bear Stearns during the Global Financial Crisis.
Bear Stearns was a major investment bank with extensive exposure to mortgage-related securities and a large short-term funding requirement. In March 2008, confidence in the firm collapsed, creating the danger that it could not meet obligations as counterparties withdrew funding.
The Federal Reserve provided emergency support for a transaction in which JPMorgan Chase initially agreed to acquire Bear Stearns. The deal was announced on March 16, 2008, and the price was later increased from the original proposal. The rescue was intended to prevent a disorderly failure and wider contagion.
Bear Stearns is often confused with Lehman Brothers, which filed for bankruptcy in September 2008. It is also distinct from AIG, which received direct government assistance. The Bear Stearns episode showed that the crisis was already severe months before Lehman’s collapse.