ABSTRACT
Bear Stearns never ran short of capital. It just could not meet its obligations. At least that is the view from Washington, where regulators never stepped in to force the investment bank to reduce its high leverage even after it became clear Bear was struggling last summer. Instead, the regulators issued repeated reassurances that all was well. Does it sound a little like a doctor emerging from a funeral to proclaim that he did an excellent job of treating the late patient?
