Head over to New City Agenda, a London-based think tank, for some incredible financial history: the beginning of the 2008 Credit Crisis. On June 7 of 2007, two Bear Stearns hedge funds reported poor performance and the suspension of withdrawals.
"On June 7th 2007, Bear Stearns sent an email to investors in two hedge funds – the High Grade fund and the Enhanced Leverage fund – announcing that it was suspending the ability of investors to withdraw their money. These hedge funds had used high leverage to invest in opaque and illiquid securities backed by toxic sub-prime mortgages. Although, it did not seem so at the time it was the beginning of the credit crunch and the start of a chain of events that would lead to the collapse of Bear Stearns in March 2008."
Read the full investor notice here:
And the full article here: