Bear Stearns

1
Bear Stearns

• Wendy Hsieh
• Tony Chang
• Wenqian Wu
• Vasanth Subramaniam

November 7th, 2006
2
Overview

• Bear Stearns Companies Inc. NYSE BSC is the
  parent company of Bear, Stearns Co. Inc. and is
  one of the largest and best-known global
  investment banks and securities trading and
  brokerage firms in the world.
• The company was founded in 1923 and serves
  corporations, institutions, governments and
  individuals.
• Bear Stearns focuses on three core areas Capital
  Markets, Wealth Management, and Global Clearing
  Services.
• Bear Stearns currently employs approximately
  11,000 people worldwide. The firm has offices in
  New York City, Atlanta, Boston, Chicago, Dallas,
  Denver, Los Angeles, San Francisco and San Juan.
  Internationally, it holds offices in London,
  Beijing, Dublin, Herzliya, Hong Kong, Lugano,
  Milan, São Paulo, Shanghai, Singapore, and Tokyo.
• In 2005, Bear Stearns has been recognized as the
  Most Admired securities firm in Fortunes
  Americas Most Admired Companies survey. This
  marks the second time in the past three years
  that Bear Stearns has achieved this top
  distinction.

3
Company Profile

• Strengths
• Media
• Acquisition finance
• Transportation
• Gaming
• Real Estate
• Expansion phase

• Limitations
• Smaller balance sheet
• Less debt underwriting

Bear Stearns is one of the three pure play
investment banks
4
Company Culture and Internship Experience

• Culture
• Company culture of frugality
• Older, more conservative bank (not flashy)
• Encourages individualism

• Internship Experience
• Summer internships are generalists
• Choose top 3 or 4 groups and rotate during 10
  week internship
• First week is training
• Interesting projects
• Comfortable, teamwork atmosphere

5
League Table Rankings

• 1 US Residential Mortgage-Backed Securities
• 2 US Mortgage-Backed Securities
• 3 Global Mortgage-Backed Securities
• 5 US Completed MA Adviser
• 5 Global Collateralized Debt Obligations
• 6 US Commercial Mortgage-Backed Securities
• 8 US Asset-Backed Securities
• 10 Global High-Yield Debt
• 11 Global Completed MA Adviser

6
Financial Snapshot FY2005
7
BSC Stock Price

• BSC Stock Price 1-Year (151.35 as of 10/31/2006)
• BSC Stock Price 5-Year

8
Recent News

• November 1, 2006
• Bear Stearns Co.'s unit Arroyo Energy LP agreed
  to acquire privately held Delta Power Co. LLC for
  undisclosed financial terms.
• The New York-based investment banking and
  securities trading and brokerage firm said
  interests in 19 power projects are included in
  the sale of the Morristown, N.J., owner and
  manager of power generation projects.
• Bear Stearns' revenue last year was 7.4 billion.
  
• October 27, 2006
• Standard Poor's on October 27, 2006 raised its
  ratings on Bear Stearns Cos., citing the
  company's stable profits and conservative
  management.
• Bear Stearns in September said strong
  mortgage-backed bond activity helped boost
  third-quarter net income nearly 16 percent,
  topping Wall Street expectations, amid some
  worries a cooling U.S. housing market will hurt
  the investment bank's bread-and-butter business.
• October 10, 2006
• Bear Stearns beefs up Europe real estate lending.
  Bear Stearns International has expanded its
  commercial real estate lending business in Europe
  with the appointments of Stephen Haskin and Steve
  Williams as co-heads, the bank said on October
  10, 2006. Haskin and Williams, both managing
  directors, will develop both securitized and
  non-securitized lending as well as other
  principal activities related to commercial real
  estate in Europe. They plan to make additional
  hires as the business expands.
• October 10, 2006
• Bear Stearns agrees to buy subprime origination
  unit. Bear Stearns Companies Inc.said on Tuesday
  it had agreed to acquire ECC Capital Corp.'s
  mortgage origination unit.
• Under the agreement, Bear Stearns' mortgage bank
  subsidiary, Bear Stearns Residential Mortgage
  Corp., will purchase the subprime mortgage
  origination platform of ECC Capital's subsidiary,
  Encore Credit Corp.
• Encore Credit specializes in originating
  mortgages for borrowers with less than stellar
  credit ratings.

9
Recent News

• October 4, 2006
• Bear Sterns continues expansion in Asia with
  three hires in structured equity products.
• Bear, Stearns Asia Limited has broadened its
  structured equity product offering in Asia with
  three new hires in Hong Kong. New services
  include synthetic equity finance, such as equity
  swaps and other derivative-based instruments, and
  a synthetic prime brokerage service to handle
  financing and execution. Bear Stearns now offers
  these services to clients worldwide.
• September 14, 2006
• Bear Sterns reports third quarter earnings per
  share of 3.02 net income rises 16 to 438
  million
• Highest Ever Net Revenues, Net Income And
  Earnings Per Share For The First Nine Months Of
  2006
• Fixed Income Net Revenues Up 19Institutional
  Equities Net Revenues Up 31Wealth Management
  Net Revenues Up 36
• August 17, 2006
• Bear Stearns announced today that the
  Japanese-based rating agency Rating Investment
  Information Inc. ("RI"), has upgraded the issuer
  rating of The Bear Stearns Companies Inc.to "AA-"
  from "A" with "Stable Outlook". RI cited the
  firms continued dominant market position in the
  prime brokerage area of its global clearing
  services segment in the face of increasing global
  competition and the successful diversification of
  Bear Stearns revenue sources.