Bear Stearns Case Study:
Write a report analysing the collapse of Bear Stearns after reading the “Rise and Fall of the Bear” case study. Your report must consist of six separate sections, one for each of the following specific questions:
1. What role did Bear Stearns’ culture play in its positioning vis-à-vis its competitors, and what role might that culture have played in its demise?
2. What could Bear Stearns have done differently to avoid its fate:
i) In the early 2000s?
ii) During the summer of 2007?
iii) During the week of 10 March, 2008?
3. Is market perception of liquidity more important for an investment bank than it is for a traditional manufacturing or distribution business? If so, why?
4. How could Bear Stearns have addressed perceptions of its illiquidity? Could it have stopped the run on the bank, and if so, how?
5. Did Bear Stearns’ failure undermine the viability of so-called “pure-play” investment banks?
6. What role should the Federal Reserve play in maintaining order in world securities’ markets??00?