Earlier this year the US investment bank, Bear Stearns, suffered a massive collapse of confidence and was taken over by J P Morgan. At the time Bear Stearns was the 5th largest US investment bank.
There has been a knock on effect, compounding the sub-prime debacle. Indeed, this failure led in my view to Lehmann’s failure and to where we are today.
It is written by Bryan Burrough author of Barbarians at the Gate the absorbing tale of the takeover of R J Reynolds.