Didn't see it posted, but it's an important piece that deserves to be read. This was a successful trial run of liquidity-based ("run on the bank") attack on financial system, which was repeated in stages, with other institutions, culminating in September's fall of Lehman.
Related article (excerpt from the same book) that fills the gaps on financial condition of Bear Stearns at the time of collapse: Diary of a Bear Stearns Executive - WSJ (public), May 8, 2009, by Kate Kelly.
"In office," wrote Mr. Friedman. "Rp isn't the problem, free credits, cp and bank lines are," he explained, referring to client cash that had flown out the door, commercial paper, and loans from banks that were now looking like an endangered species. Where are you?" replied Mr. Geismar [Bear's head of operations], who had gone home earlier. "Were repo lines pulled?" he asked, referring to the type of short-term loans on which Bear was heavily reliant.
That was a description of a "giant sucking sound" of cash withdrawals and credit not being available to fund operations.
So, Who did the run? Was it another country?
mark
Interesting. BTTT!