Federal Reserve Bank of New York

Bear Stearns Collapse and Federal Reserve-Facilitated Fire Sale to JPMorgan with $29 Billion Taxpayer Guarantee Establishes 'Too Big to Fail' Precedent with Zero Criminal Prosecutions Despite Fraud-Driven Collapse

2008-03-16 00:00:00 +0000 UTC | Importance: 10/10

Bear Stearns, the fifth-largest investment bank in the United States with $400 billion in reported consolidated assets, collapsed in March 2008 after its liquidity pool plummeted from $18.1 billion on March 10 to just $2 billion on March 13. The firm had leveraged its capital up to 35 …

Bear Stearns JPMorgan Chase Federal Reserve Bank of New York Ben Bernanke Timothy Geithner +2 more financial-crisis regulatory-capture too-big-to-fail bailout accountability-crisis

Federal Reserve Orchestrates $3.6 Billion Bailout of Long-Term Capital Management to Prevent Systemic Collapse

1998-09-23 00:00:00 +0000 UTC | Importance: 10/10

On September 23, 1998, Federal Reserve Bank of New York President William McDonough orchestrated a $3.6 billion bailout of hedge fund Long-Term Capital Management (LTCM) by convincing 14 major banks and brokerage firms to inject capital in exchange for 90% ownership of the failing fund. Founded by …

William McDonough Alan Greenspan John Meriwether Long-Term Capital Management Federal Reserve Bank of New York financial-crime regulatory-capture federal reserve bailout systemic-risk +3 more