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Bear Stearns’ collapse still echoes 10 years on

No regulatory apparatus can be erected against complacency or the normal ebb and flow of the business cycle

A demonstrator holds a sign outside Bear Stearns headquarters in New York, US, on Wednesday, March 26, 2008
A demonstrator holds a sign outside Bear Stearns headquarters in New York, US, on Wednesday, March 26, 2008 Photo: Getty Images

Maiden Lane, a small, winding street in Lower Manhattan, is home to the rear entrance of the headquarters of the Federal Reserve Bank of New York. Its name was lent nearly a decade ago to a lending facility created by the Fed to assist JPMorgan in its emergency acquisition of the fatally wounded broker-dealer Bear Stearns.

The symbolism was rich: The Fed was lending out its back door in an emergency effort to contain the biggest financial crisis since the 1920s.

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