Many Americans shrugged off the implosion of a pair of overleveraged Bear Stearns hedge funds in 2007. Stocks were at record highs, after all. But later it became apparent that those bankruptcies were among the first shoes to drop in an epic financial meltdown that would impact virtually all Americans.
Wall Street CEO Jamie Dimon rescued Bear Stearns when it nearly collapsed in 2008. Today, he cautions that trouble could be lurking again beneath the red-hot markets.
First, a subprime auto lender and dealer went bust last month in a crash fueled by plenty of risky loans and, allegedly, “pervasive fraud” of “extraordinary proportion,” a lawyer said in court.
Then First Brands, an auto-parts sup
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