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**joanasevilyboaz** · 03-23-2008, 12:28 AM

Diversification and risk management varies from firm to firm. Bear was, for the longest time, known as a bond shop. It actually diversified itself significantly during the 90s. And it wasn't the least diversified of the bunch: Lehman had the largest exposure to mortgages.

Bear's collapse is proof that having good hard assets is as important as having good soft assets. As soon as the rumors started spreading, every one of their clients began withdrawing their money. One of my family members works at a private equity firm that withdrew in excess of $20bn early that Friday.

A run on the bank, in the most traditional sense.

03-23-2008, 12:28 AM	#10
joanasevilyboaz Join Date Oct 2005 Posts 394 Senior Member	Diversification and risk management varies from firm to firm. Bear was, for the longest time, known as a bond shop. It actually diversified itself significantly during the 90s. And it wasn't the least diversified of the bunch: Lehman had the largest exposure to mortgages. Bear's collapse is proof that having good hard assets is as important as having good soft assets. As soon as the rumors started spreading, every one of their clients began withdrawing their money. One of my family members works at a private equity firm that withdrew in excess of $20bn early that Friday. A run on the bank, in the most traditional sense.
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