Bear Stearns: The Horrors of an Institutional Panic

3/13 - "Despite its billions of dollars, the firm has had a tremendous break-down with its clients and counterparties. According to Bear's CEO, Alan Schwartz, the liquidity position "deteriorated" in a matter of about 24 hours (yes, it's something you never want someone like him to say). As a result, the firm has received secured loan facilities from JPMorgan Chase & Co. (NYSE: JPM) and even the Federal Reserve Bank of New York.

This action is vital. After all, a collapse of a massive financial institution is poison for all the other players (if history is any indication). What's more, firms like Bear have extremely complicated operations and structure highly leveraged transactions and derivatives. In other words, the "house of cards" seems like the right analogy. More importantly, what other firms are stretched like Bear?"