During the credit crisis, the Fed provided funding that allowed Bear Stearns, a large securities firm, to avoid bankruptcy even though Bear Stearns was not a depository institution.

Question

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During the credit crisis in 2008, the Federal Reserve facilitated a deal in which JPMorgan Chase acquired Bear Stearns, providing emergency funding to avoid Bear Stearns' bankruptcy, despite it being a securities firm and not a depository institution. This was part of broader efforts to stabilize the financial system.

During the Credit Crisis, the Fed Provided Funding That Allowed