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40-526: In 2007, Bear Stearns reported that TRN was the second-largest provider of nationally syndicated radio talk shows in the country, ahead of competitors ABC Radio and then-CBS-controlled Westwood One . The company thereafter went into decline amid contract disputes with its most successful talents and an ongoing feud with its satellite provider. In December 2017, affiliate radio stations reported that Talk Radio Network's programming feed had ceased without notice. Talk Radio Network originated from Advice Line ,

80-401: A class action suit was filed on behalf of shareholders, challenging the terms of JPMorgan's acquisition of Bear Stearns. That same day, a new agreement was reached that raised JPMorgan Chase's offer to $ 10 a share, up from the initial $ 2 offer, which meant an offer of $ 1.2 billion. The revised deal was aimed to quiet upset investors and was necessitated by what was characterized as loophole in

120-402: A stock swap worth $ 2 a share, or less than 7 percent of Bear Stearns' market value just two days before. This sale price represented a staggering loss as its stock had traded at $ 172 a share as late as January 2007, and $ 93 a share as late as February 2008. Eventually, after renegotiating the purchase of Bear Stearns, Maiden Lane LLC was funded by a $ 29 billion first priority loan from FRBNY and

160-506: A $ 1 billion subordinated loan from JPMorgan Chase, without further recourse to JPMorgan Chase. The structure of the transaction, with both loans collateralized by securitized home mortgages and with the JPMorgan Chase loan bearing losses before the FRBNY loan, meant that FRBNY could not seize or otherwise encumber JPMorgan Chase's assets if the underlying collateral became insufficient to repay

200-522: A $ 25 billion loan to Bear Stearns collateralized by unencumbered assets from Bear Stearns in order to provide Bear Stearns the liquidity for up to 28 days that the market was refusing to provide. Shortly thereafter, FRBNY had a change of heart and told Bear Stearns that the 28-day loan was unavailable to them. The deal was then changed to where FRBNY would create a company (what would become Maiden Lane LLC ) to buy $ 30 billion worth of Bear Stearns' assets, and Bear Stearns would be purchased by JPMorgan Chase in

240-530: A 61 percent drop in net profits due to their hedge fund losses. With Samuel Molinaro's November 15th revelation that Bear Stearns was writing down a further $ 1.2 billion in mortgage-related securities and would face its first loss in 83 years, Standard & Poor's downgraded the company's credit rating from AA to A. Matthew Tannin and Ralph R. Cioffi, both former managers of hedge funds at Bear Stearns, were arrested June 19, 2008. They faced criminal charges and were found not guilty of misleading investors about

280-566: A dispute arose when TRN attempted to exercise a "right to match" provision in Savage's contract at the end of its term. Savage argued against going into arbitration with TRN but was shot down. The American Arbitration Association (AAA) awarded Savage more than $ 1 million, ruling in his favor, and allowing him to sign with Cumulus Media Networks . TRN told the Ninth Circuit Court of Appeals that, through ex parte letters, Savage had threatened

320-713: A focus on investigative reporting and live news and commentary from Washington, D.C. At its launch, AMN was hosted by Melanie Morgan and John McCaslin . TRN rolled out America's Radio News Network (ARNN) in January 2011 as an all news network service for stations, which ran for 15 hours every weekday. TRN (permanently) suspended ARNN operations on September 6, 2013. TRN effectively ceased regular operations on December 22, 2017 when its programming stopped being delivered via satellite to radio stations. Advice Line later moved to Radio America . TRN syndicated The Michael Savage Show from 1999 until 2012. In 2006, Michael Savage

360-527: A guarantee that was open-ended, despite the fact that the deal required shareholder approval. While it was not clear if JPMorgan's lawyers, Wachtell, Lipton, Rosen & Katz , were to blame for the mistake in the hastily written contract, JPMorgan's CEO, Jamie Dimon , was described as being "apoplectic" about the mistake. The Bear Stearns bailout was seen as an extreme-case scenario, and continues to raise significant questions about Fed intervention. On April 8, 2008, former Fed chairman Paul Volcker stated that

400-430: A new federal antitrust lawsuit against Cumulus Media , Westwood One , Compass Media Networks , Ron Hartenbaum's WYD Media Management & WYM Media Management, former Cumulus Media CEO Lew Dickey and Westwood One COO Charles Steinhauer. TRN said in its lawsuit that Westwood One uses its monopoly power to conceal and misrepresent its accounting of advertising revenue allocations and advantage its own programming at

440-429: A syndicated program hosted by Roy Masters . TRN was established and operated by Masters's sons and carried Advice Line throughout its existence. Among the network's earliest offerings was Art Bell 's Coast to Coast AM produced by David Masters from 1994 through 1998 which had reached record station affiliates of over 500 during that time. In 1998, the original Talk Radio Network Inc. company and all of its programs

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480-527: The National Association of Securities Dealers alleging that Bear Stearns misled investors about its exposure to the funds. This was the first legal action made against Bear Stearns. Co-President Warren Spector was asked to resign on August 5, 2007, as a result of the collapse of two hedge funds tied to subprime mortgages. A September 21 report in The New York Times noted that Bear Stearns posted

520-490: The AAA with a negative public relations campaign during proceedings, which interfered with the arbitrator's decision-making. The Ninth Circuit refused to allow the evidence. The Supreme Court later denied TRN's request for writ of certiorari in 2016. The Laura Ingraham Show moved from Westwood One to Talk Radio Network in 2004. In June 2008, Ingraham walked away from the program in a contract dispute. She eventually returned to

560-513: The Bear Stearns High-Grade Structured Credit Enhanced Leveraged Fund. Bear Stearns had originally put up just $ 25 million, so they were hesitant about the bailout; nonetheless, CEO James Cayne and other senior executives worried about the damage to the company's reputation. The funds were invested in thinly traded collateralized debt obligations (CDOs). Merrill Lynch seized $ 850 million worth of

600-532: The Enhanced Fund as a repository for risky, poor-quality investments". The lawsuit said Bear Stearns told Barclays that the enhanced fund was up almost 6% through June 2007—when "in reality, the portfolio's asset values were plummeting." Other investors in the fund included Jeffrey E. Epstein 's Financial Trust Company. On March 14, 2008, the Federal Reserve Bank of New York ("FRBNY") agreed to provide

640-521: The FRBNY loan. Federal Reserve Chairman Ben Bernanke defended the bailout by stating that a bankruptcy of Bear Stearns would have affected the real economy and could have caused a "chaotic unwinding" of investments across US markets. On March 20, SEC Chairman Christopher Cox said the collapse of Bear Stearns was due to a lack of confidence, not a lack of capital. Cox noted that Bear Stearns' problems escalated when rumors spread about its liquidity crisis which in turn eroded investor confidence in

680-561: The Fed had taken actions that "extend to the very edge of its lawful and implied powers." See his remarks at a luncheon of the Economic Club of New York. On May 29, Bear Stearns shareholders approved the sale to JPMorgan Chase at the $ 10-per-share price. An article by journalist Matt Taibbi for Rolling Stone contended that naked short selling had a role in the demise of both Bear Stearns and Lehman Brothers. A study by finance researchers at

720-522: The New York-based court cancelled the stay, allowing TRN's appeal to proceed. In a two-page filing on August, 10, 2018, TRN made a plaintiff’s motion for “voluntary dismissal.” It stated, “Plaintiffs hereby respectfully move to dismiss the appeal in this matter with prejudice, with an order that each party bear its own costs and attorney’s fees.” And added, “Defendants have authorized us to represent that they consent to this Motion.” The court record reflects

760-656: The University of Oklahoma Price College of Business studied trading in financial stocks, including Bear Stearns and Lehman Brothers, and found "no evidence that stock price declines were caused by naked short selling." Time magazine also labelled former Bear Sterns head James Cayne as the CEO most responsible out of all the CEOs who "screwed up Wall Street" during the Financial crisis of 2007–2008 , even reporting that "none seemed more asleep at

800-564: The company was a prelude to the 2007–2008 financial crisis and the meltdown of the investment banking industry in the United States and elsewhere. In January 2010, JPMorgan ceased using the Bear Stearns name. Bear Stearns was founded as an equity trading house on May 1, 1923, by Joseph Ainslie Bear , Robert B. Stearns and Harold C. Mayer with $ 500,000 in capital (equivalent to $ 8,941,406 in 2023). Internal tensions quickly arose among

840-656: The dismissal with prejudice on August 23, 2018. Meanwhile, TRN ceased operations in December 2017. Bear Stearns The Bear Stearns Companies, Inc. was an American investment bank , securities trading, and brokerage firm that failed in 2008 during the 2007–2008 financial crisis and the Great Recession . After its closure it was subsequently sold to JPMorgan Chase . The company's main business areas before its failure were capital markets , investment banking, wealth management , and global clearing services, and it

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880-481: The expense of programs of independent radio syndicators. The lawsuit was dismissed on September 11, 2016, but TRN immediately appealed the decision. While Cumulus Media sorted through its bankruptcy, an automatic stay of the TRN appeal was in effect. Upon Cumulus Media's exit from bankruptcy on June 4, 2018, TRN asked the bankruptcy judge to terminate the automatic stay and allow it to proceed with its appeal. On July 3, 2018,

920-575: The firm had offices in London , Beijing , Dublin , Frankfurt , Hong Kong , Lugano , Milan , São Paulo , Mumbai , Shanghai , Singapore and Tokyo . In 2005–2007, Bear Stearns was recognized as the "Most Admired" securities firm in Fortune 's "America's Most Admired Companies" survey, and second overall in the securities firm section. The annual survey is a prestigious ranking of employee talent, quality of risk management and business innovation. This

960-473: The firm. "Notwithstanding that Bear Stearns continued to have high quality collateral to provide as security for borrowings, market counterparties became less willing to enter into collateralized funding arrangements with Bear Stearns", said Cox. Bear Stearns' liquidity pool started at $ 18.1 billion on March 10 and then plummeted to $ 2 billion on March 13. Ultimately market rumors about Bear Stearns' difficulties became self-fulfilling, Cox said. On March 24, 2008,

1000-510: The mortgage-backed assets that were central to the subprime mortgage crisis . In March 2008, the Federal Reserve Bank of New York provided an emergency loan to try to avert a sudden collapse of the company. The company could not be saved, however, and was sold to JPMorgan Chase for $ 10 per share, a price far below its pre-crisis 52-week high of $ 133.20 per share, but not as low as the $ 2 per share originally agreed upon. The collapse of

1040-656: The network in a mutual decision. After years of rebuilding Hendrie's affiliate base, it abruptly switched the affiliates to Roy Masters's Advice Line . In August 2011, TRN, representing the three largest privately held syndicators, filed an antitrust lawsuit against Dial Global after it merged with Westwood One . TRN also said that "Dial Global/Westwood One has been collecting our advertising revenues, but refusing to pay them over to us or to account for them." In 2013, Cumulus Media acquired Dial Global (renamed Westwood One ) for $ 260 million, to which TRN publicly opposed. Shortly after, TRN scaled back its operations resulting in

1080-759: The risks involved in the subprime market. Tannin and Cioffi were also named in lawsuits brought by Barclays Bank , which claimed they were one of the many investors misled by the executives. They were also named in civil lawsuits brought in 2007 by investors, including Barclays, who claimed they had been misled. Barclays claimed that Bear Stearns knew that certain assets in the Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund were worth much less than their professed values. The suit claimed that Bear Stearns managers devised "a plan to make more money for themselves and further to use

1120-407: The show a month later. Immediately after Savage won his case against the network, Ingraham's contract also expired; in addition to leaving the network, she also won rights to her entire show's archive from TRN. Ingraham joined Norman Pattiz 's Courtside Entertainment Group in January 2013. In June 2013, shortly after both Savage and Ingraham left TRN, Phil Hendrie terminated his relationship with

1160-465: The sudden suspension of America's Radio News Network . In March 2014, TRN and Cumulus Media announced a settlement of TRN's lawsuit over claims of unpaid advertising revenues and unfair competition against Dial Global. Regarding the settlement, Cumulus Media President/CEO Lew Dickey said, "While Cumulus Media had no role in the lawsuits filed by TRN Companies, we are pleased to resolve these claims and move forward together." In April 2016, TRN launched

1200-1024: The three founders. The firm survived the Wall Street Crash of 1929 without laying off any employees and by 1933 opened its first branch office in Chicago . In 1955 the firm opened its first international office in Amsterdam . In 1985, Bear Stearns became a publicly traded company. It served corporations, institutions, governments, and individuals. The company's business included corporate finance, mergers and acquisitions, institutional equities, fixed income sales & risk management, trading and research, private client services, derivatives, foreign exchange and futures sales and trading, asset management, and custody services. Through Bear Stearns Securities Corp., it offered global clearing services to broker dealers, prime broker clients and other professional traders, including securities lending . Bear Stearns' World Headquarters

1240-466: The underlying collateral but only was able to auction $ 100 million of them. The incident sparked concern of contagion as Bear Stearns might be forced to liquidate its CDOs, prompting a mark-down of similar assets in other portfolios. Richard A. Marin , a senior executive at Bear Stearns Asset Management responsible for the two hedge funds, was replaced on June 29 by Jeffrey B. Lane, a former vice chairman of rival investment bank Lehman Brothers . During

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1280-430: The week of July 16, 2007, Bear Stearns disclosed that the two subprime hedge funds had lost nearly all of their value amid a rapid decline in the market for subprime mortgages. On August 1, 2007, investors in the two funds took action against Bear Stearns and its top board and risk management managers and officers. The law firms of Jake Zamansky & Associates and Rich & Intelisano both filed arbitration claims with

1320-419: Was accused of Islamophobia based on comments he made on-air. Mark Masters defended Savage's free speech rights and said, " CAIR threw the kitchen sink at us with the goal of getting Savage fired, but we weren't intimidated. His audience supports him and so do his sponsors who have renewed... [Savage is] just a guy with an opinion venting his heartfelt feelings to his audience, and they support him." In 2010,

1360-433: Was acquired by Premiere Radio Networks for the syndication rights of Coast to Coast AM . At that time, TRN's programs were broadcast nationally by more than 300 radio stations. Actor Jerry Doyle was introduced to TRN by Mancow Muller , who at the time hosted The Mancow Experience on TRN. Before starting his own show, Doyle was invited to guest-host for Rusty Humphries ' TRN-syndicated Saturday Night America , which

1400-598: Was broadcast to over two hundred stations. Based on the broadcast, TRN offered Doyle a regular show that became The Jerry Doyle Show . Doyle hosted the show for TRN until his sudden death in 2016. TRN has been responsible for syndicating and producing other notable talk radio programs including The Sam Sorbo Show , Science Fantastic with Michio Kaku , The Laura Ingraham Show (from 2004 to 2012), The Andrea Tantaros Show , Monica Crowley , and The Phil Hendrie Show . In June 2009, TRN partnered with The Washington Times to debut America's Morning News (AMN) with

1440-441: Was carrying more than $ 28 billion in 'level 3' assets on its books at the end of fiscal 2007 versus a net equity position of only $ 11.1 billion. This $ 11.1 billion supported $ 395 billion in assets, which means a leverage ratio of 35.6 to 1. This highly leveraged balance sheet, consisting of many illiquid and potentially worthless assets, led to the rapid diminution of investor and lender confidence, which finally evaporated as Bear

1480-556: Was forced to call the New York Federal Reserve to stave off the looming cascade of counterparty risk which would ensue from forced liquidation. On June 22, 2007, Bear Stearns pledged a collateralized loan of up to $ 3.2 billion to "bail out" one of its funds, the Bear Stearns High-Grade Structured Credit Fund, while negotiating with other banks to loan money against collateral to another fund,

1520-432: Was heavily involved in the subprime mortgage crisis . In the years leading up to the failure, Bear Stearns was heavily involved in securitization and issued large amounts of asset-backed securities which were, in the case of mortgages, pioneered by Lewis Ranieri , "the father of mortgage securities." As investor losses mounted in those markets in 2006 and 2007, the company actually increased its exposure, especially to

1560-565: Was located at 383 Madison Avenue , between East 46th Street and East 47th Street in Manhattan . By 2007, the company employed more than 15,500 people worldwide. The firm was headquartered in New York City with offices in Atlanta , Boston , Chicago, Dallas , Denver , Houston , Los Angeles , Irvine , San Francisco , St. Louis ; Whippany, New Jersey ; and San Juan, Puerto Rico . Internationally

1600-635: Was the second time in three years that Bear Stearns had achieved this "top" distinction. By November 2006, the company had total capital of approximately $ 66.7 billion and total assets of $ 350.4 billion and according to the April 2005 issue of Institutional Investor magazine, Bear Stearns was the seventh-largest securities firm in terms of total capital. A year later Bear Stearns had notional contract amounts of approximately $ 13.40 trillion in derivative financial instruments, of which $ 1.85 trillion were listed futures and option contracts. In addition, Bear Stearns

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