"Bear Stearns Co. executives realized late afternoon of March 13 that the firm wouldn't be able to withstand what was effectively a ``run on the bank,'' the Wall Street Journal reported, citing unidentified people familiar with the events.The article then reports that a 5 AM conference call eventually let to the bail out by 7AM.
At about 4:30 p.m. local time that day Chief Executive Officer Alan Schwartz became ``convinced'' Bear Stearns was facing a ``desperate situation'' after securities firms began insisting on cash instead of accepting collateral and hedge funds started withdrawing cash, the newspaper said.
Bear Stearns and officials from the Securities and Exchange Commission told the Federal Reserve on a conference call at 7:30 p.m. that the bank had lost ``far more'' of its liquidity that day."
Bloomberg has several interesting articles on the Bear situation and the historic proportions this is. This one is a definite must read for any money and banking or Financial Institutions class! It is on the precedence breaking Fed move.