Bear Stearns failed in March 2008, six months before Lehman Brothers filed for bankruptcy. The investment bank faced a sudden loss of confidence after two of its hedge funds collapsed in 2007 and mortgage-related assets lost value.
JPMorgan Chase agreed to acquire Bear Stearns with assistance from the U.S. Federal Reserve. The rescue showed that authorities feared a disorderly failure could spread through the financial system. It also signaled that mortgage and credit-market problems were broader than a few isolated funds.
Bear Stearns and Lehman Brothers had different outcomes: Bear Stearns was sold, while Lehman filed for bankruptcy on September 15, 2008. The distinction matters because public discussions sometimes describe both as “bailouts,” even though the transactions and government support were not identical. The crisis later led to further interventions, including the Troubled Asset Relief Program.