New York – Jews Hit Hard by Bear Stearns collapse

New York – The UJA-Federation of New York is bracing for potential fallout from the collapse of Bear Stearns.

A cloud of uncertainty is hanging over the company after a run on its bank led to its controversial sale to JPMorgan Chase for pennies on the dollar.

The collapse could have a broad-ranging negative effect in New York, as Bear Stearns is among the 25 largest employers in the city. Many of its 14,000 employees are Jewish.

The loss of salaries and the potential for mass layoffs could put a strain on the local nonprofit world here, the New York federation’s senior vice president, Paul Kane, said.

The federation garnered about $40 million through its Wall Street division last year-a number that has soared in recent years as Wall Street recovered from the post-9/11 recession.

Bear Stearns was at the center of that advance. Its chairman, Alan “Ace” Greenberg, famously would act as the ringleader of the federation’s annual Wall Street dinner, standing on the dais, calling out names and publicly soliciting six- or seven-figure contributions. [CJN]