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REGION: North America
TOPIC: Business & Economy
Online NewsHour
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Posted: March 24, 2009

The Fall of Bear Stearns

Wall Street bull; Guillaume (Barcelona), Flickr Long before the public learned that AIG and other financial institutions were taking huge risks with billions of dollars, there was some foreshadowing of what was to come on Wall Street.
QUESTIONS
Were all banks playing the money game like AIG and Bear Stearns?
Due to layoffs, aren't there a large number of financial types willing to work for less?
What role did customers pulling cash from their accounts and naked short selling have in Bear's collapse?
Can you share any anecdotes from working on Wall Street that exemplify the culture of "hubris and wretched excess"?
I thought that the stock market was always "publicly" owned. Can you explain?
Why is it that the share holders take all of the losses?
What can be done to prevent this from happening again and restore world confidence in the U.S. market?

In March 2008, the sudden and spectacular collapse of Wall Street titan Bear Stearns shocked the financial world, but also gave an early warning of the economic crisis that would sweep the world in the year to come.

William Cohan, a former award winning investigative newspaper reporter in Raleigh, North Carolina who had worked on Wall Street for 17 years, explores the human causes and effects of collapse.

Cohan, who worked for Lazard Freres in New York for six years and later became the managing director at JP Morgan Chase, explores what he describes as a culture of "hubris and wretched excess" that lead Bear Stearns to create the questionable mortgage investments that contributed to a global meltdown.

He answered your questions on Wall Street's collapse.

Transcript: Author Traces Demise of Bear Stearns in 'House of Cards'


ONLINE NEWSHOUR LINKS

March 19, 2009
Anger at AIG Continues as House Passes Tax on Bonuses


March 19, 2009
In-depth Coverage: The Exchange


March 19, 2009
The Business Desk: Paul Solman Answers Your Financial Questions


March 18, 2009
Author Discusses Bankers' Role in the Great Depression


March 18, 2009
Outcry Over AIG May Pose Challenge to Obama's Agenda




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