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by arnavs 1962 days ago
Bear Stearns declined to participate in the Fed-organized bailout of LTCM. Ten years later, the Fed declined to participate in any bailout of Bear Stearns.
1 comments

The Fed had no legal authority to bail out Bear Stearns because Bear Stearns was an i-bank.

The only two i-banks that got help from the Fed were Morgan and Goldman, and they only got it by converting to commercial bank holding companies first. So really, no i-banks got help from the Fed.