Question

Lehman Brothers and Bank of America (B of A) were hoping to receive the same treatment from the Treasury Department as Bear Stearns and JP Morgan Chase had received. What had the Treasury Dept. done for "Bear" and JP Morgan

Answer 1

In the clarification paragraph following, the definition of the concern is mentioned.

Step-by-step explanation:

• Bear Stearns, which collapsed in 2008, was indeed a financial institution. The business has been active in the financial and investment markets and global clearing systems and has been currently participating throughout the subprime crisis.
• Bear Sterns wasn't a big bank, but it has been recognized quite well. It had been found too massive to fail. The Federal Reserve felt that perhaps the bank's collapse would have had a significant effect on consumers' trust in the financial system. The treasury department borrowed JPMorgan Chase $30 billion throughout March 2008 to purchase the struggling investment bank.
• In the deal between some of the two, FED played a significant part. In connection to something like the lending to JPMorgan Chase, the Fed is now taking on an extra $30 billion worth with mortgage-related securities held by Bear Stearns against collateral.