what exactly happened?
Does anyone know what exactly happened to Bear? Everything's still ok two days ago but the last I heard, the bank is collapsing. It seems totally surreal. Events just moved too quickly for me.
Basically an old fashioned run on the bank.
Think: "It's A Wonderful Life" w/Jimmy Stewart when they count the seconds until 4pm close in order to remain solvent during a run on the bank. The only difference is that, in this case, Bear is an I-bank whose 'depositors' are counterparties, or those with whom they trade (and thus rely on short term financing.) HF's, other BB's, etc. got spooked this week and began making margin calls. When this happens, Bear faces a squeeze on cash from depositors and can no longer finance their long term holdings.
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