Bear Stearns did close down a hedge fund. The Feds gave 'em the money to open.
Bear Stearns didn't have enough cash to let folks cash out from the fund, they couldn't borrow enough because the securities weren't worth it.
The Feds loaned Bear Stearns the money with those same securities as collateral, in effect bailing out the wealthy with your tax dollars and reducing the US to the subprime mortgage standard.
Arf