1. What values were in conflict for the parties to this transaction? Clue: The parties included, among others, the Federal Reserve, the U.S. Secretary of the Treasury and the Treasury Department, the...

1. What values were in conflict for the parties to this transaction? Clue: The parties included, among others, the Federal Reserve, the U.S. Secretary of the Treasury and the Treasury Department, the SEC, and the president of the United States, as well as employees of Bear Stearns. Chapter 1 discusses the values involved in the answer to this question.

2. Should federal and state “bailouts” of private-sector firms like Bear Stearns take place as a matter of general principle? If so, why? If not, why not? Clue: What values are in conflict for federal and state governments? What about taxpayers—or are they represented? Politicians? Lobbyists?