Bear Stearns was rescued by JPMorgan Chase in March 2008 before the wider global stock-market crash.
Bear Stearns was a major U.S. investment bank with substantial exposure to mortgage-related securities. In March 2008, concerns about its liquidity intensified and customers and counterparties withdrew support. The Federal Reserve helped arrange emergency financing, and JPMorgan Chase agreed to acquire the firm.
The initial deal valued Bear Stearns at only $2 per share, although the price was later raised to $10 per share. The episode showed how quickly confidence could disappear from financial institutions that relied on short-term funding. It also signaled that the mortgage crisis had become a systemic threat.
Bear Stearns is often confused with Lehman Brothers. Bear Stearns was acquired in March 2008, while Lehman Brothers filed for bankruptcy in September 2008. Their different outcomes made the two collapses important comparisons during the crisis.