Lessons from the abyss: the credit market meltdown and risk management; As the subprime mortgage malaise and related woes continue to roil the credit markets, issues of risk management and regulation are getting new attention. Hard lessons will be learned, many of which are just now beginning to be understood.(Cover story)(Company overview)

Financial Executive,  May, 2008  by Marshall, Jeffrey; Millman, Gregory J.

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Stocks fell sharply on Friday morning, March 14, as they often have in recent months. But the cause of the tumble wasn't another snowball in the avalanche of bad news from the mortgage and credit markets. It was that venerable Wall Street firm Bear, Stearns & Co. found that its cash position had cratered in the previous 24 hours and it needed emergency financing.

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That quickly came when JPMorgan Chase & Co. and the Federal Reserve Bank of New York stepped in to provide a financial life raft to Bear Stearns, the fifth-largest U.S. investment bank. ...

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