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Investment Banking. Activities of Investment Banks. Size and Structure of Industry. Industry Meltdown. J P Morgan Chase bought Bear Stearns in March 2008 with US $30b government guarantee. September 2008, U.S. government injected US $110b into Fannie Mae and Freddie Mac.
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Industry Meltdown • J P Morgan Chase bought Bear Stearns in March 2008 with US $30b government guarantee. • September 2008, U.S. government injected US $110b into Fannie Mae and Freddie Mac. • September 2008 , Bank of America took over Merrill Lynch for US $50b. • September 2008, the U.S. government allowed Lehman Brothers to collapse. • September 2008, the U.S. government took control of American International Group (AIG), loaning the insurer US $58b in exchange for an 80% equity stake. • September 2008, Goldman Sachs and Morgan Stanley allowed to become bank holding companies, allowing them to accept deposits, borrow from the U.S. Federal Reserve, and so on.