Bear Stearns Case Study
NBS-3A8Y INTERNATIONAL FINANCIAL SERVICES
Coursework: Bear Stearns Case Study
Student number: 6176194 Word count: 2381
Introduction
Bear Stearns is an investment bank that was formed in 1923 by three partners namely: Robert Sterns, Joseph Bear and Harold Mayer. During its early stages, the bank depended on core business of trading in government securities; which enabled it to survive serious economic depressions such as the Great depression and several credit crises. The bank conducted private business until 1985 when it went public (Stowell, 2008). It diversified its business operations in investment banking and had divisions such as fixed-income securities, institutional equities, mortgage-related products, and individual investor services. Bear Sterns enjoyed profitable business operations for many decades until its downfall in 2008 (Madura, 2012).
The Role Bear Stearns’ Culture Played in Its Positioning
Stowell (2008) explains that Bear Stearns was formed at an era when both the local and global economy was experiencing serious difficulties. Despite the challenges, the firm managed to come up with strategies that enabled it to grow rapidly. The firm started with seven employees in 1925 and by 1933 the firm had seventy-five employees. Sooner than expected, the company started external expansion by acquiring Brennan, A Chicago-based Stein.
According to Stowell (2008), moved very fast to create constructive culture that enabled it to attain good and profitable reputation in the New York investment Banking. Other established firms in the investment banking industry that worked for some of the world’s rich companies and received a lot of revenue from advisory services and equity underwriting did not see the essence of creating good
Coursework: Bear Stearns Case Study
Student number: 6176194 Word count: 2381
Introduction
Bear Stearns is an investment bank that was formed in 1923 by three partners namely: Robert Sterns, Joseph Bear and Harold Mayer. During its early stages, the bank depended on core business of trading in government securities; which enabled it to survive serious economic depressions such as the Great depression and several credit crises. The bank conducted private business until 1985 when it went public (Stowell, 2008). It diversified its business operations in investment banking and had divisions such as fixed-income securities, institutional equities, mortgage-related products, and individual investor services. Bear Sterns enjoyed profitable business operations for many decades until its downfall in 2008 (Madura, 2012).
The Role Bear Stearns’ Culture Played in Its Positioning
Stowell (2008) explains that Bear Stearns was formed at an era when both the local and global economy was experiencing serious difficulties. Despite the challenges, the firm managed to come up with strategies that enabled it to grow rapidly. The firm started with seven employees in 1925 and by 1933 the firm had seventy-five employees. Sooner than expected, the company started external expansion by acquiring Brennan, A Chicago-based Stein.
According to Stowell (2008), moved very fast to create constructive culture that enabled it to attain good and profitable reputation in the New York investment Banking. Other established firms in the investment banking industry that worked for some of the world’s rich companies and received a lot of revenue from advisory services and equity underwriting did not see the essence of creating good
References: Dehesa, G 2007, How to Avoid Further Credit and Liquidity Confidence Crises, [Online], Available from: http://www.voxeu.org/article/avoiding-future-credit-crises, [Accessed 9 January 2015]. Madura, J 2012, Financial Markets and Institutions. Centage Learning Stowellll, D 2008, Investment Bankin in 2008 (A): The Rise and Fall of Bear. Kellog School of Management.