Wall Street Journal – In March 2008, the investment bank Bear Stearns Cos. was teetering on the brink of collapse. To help prevent the firm’s disorderly implosion, the Fed arranged for a cash infusion, via J.P. Morgan Chase & Co., to keep Bear Stearns afloat. While the Fed’s loan was keeping the flailing bank alive, the hunt was on for a potential buyer. From the Wall Street Journal story on March 15, 2008:
The Fed, not J.P. Morgan, is bearing the risk of the loan. It is the first time since the Great Depression that the Fed has lent in this fashion to any entity other than a bank.
