Q3. What activities did Bear Stearns undertake? Was it a commercial bank or an
investment bank?
Bear Stearns undertake three main operating businesses:
1) Capital Markets
It included brokerage services, market-making, and proprietary trading in both
equities and “xed income. In addition, this business also included investment
banking services such as securities issuance and advice on mergers and
acquisitions.
2) Global Clearing Services
It included Bear’s well-regarded prime brokerage business. Bear provided trade
execution and securities clearing, custody, lending, and “nancing to hedge funds
and broker dealers.
3) Wealth Management
It included Bear’s Private Client Services group, which served high-net worth
individuals, and Bear Stearns Asset Management(BSAM), which managed hedge
funds and other investment vehicles.
