James Rodden Business Ethics Summer 2013 The Goldman Abacus Fund: Ethics You Can Count On Or Ethics That Don’t Add Up Set Up Imagine a physician is on the golf course with one of his colleagues‚ who happens to be a cardiologist. Somewhere on the back nine the cardiologist begins to tell the physician about one of his patients‚ a 52 year old man with blood pressure of 145/99‚ who is 40 lbs. overweight‚ chain smokes‚ and enjoys
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first the factor contributing to the recession was the subprime credit crunch crisis. ‘The credit crunch refers to a sudden shortage of funds for lending‚ leading to a resulting decline in loans available’ (Finance Blog: 2011) this occurred in 2007 when: US mortgages companies and lenders gave out bad loans and sold many inappropriate mortgages to customers with low income and poor credit‚ to sell more profitable subprime mortgages‚ mortgage companies bundled the debt into consolidation packages
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reform after the crisis. Part I is background‚ generally introduces the Wall Street crisis. How it happened? What consequence it has? Part II is mainly about AIG’s CDS business: how AIG got involved in the crisis and why the biggest world insurance company suddenly collapsed. Part III is about credit default swaps: definition‚ construction‚ and problems. Part IV is concerned on the regulation reform after AIG’s failure. Wall Street Crisis Speaking of the Wall Street crisis‚ people all know it
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------------------------------------------------- ------------------------------------------------- RESEARCH REPORT ON ------------------------------------------------- ------------------------------------------------- FINANCIAL CRISIS OF 2007‚ CAUSES AND EFFECT ON INDIAN BANKING SECTOR ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
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Jessica Reupke Case 28 10/9/11 1. Did subprime mortgage loans contribute to the housing bubble? Why did the bubble burst? What were the consequences of the housing bust to borrowers‚ loan originators‚ and MBS and CDO holders? Subprime mortgage loans contributed to the housing bubble as they enabled the expansion of homeownership by offering loans to a wider variety of borrowers‚ particularly those with a low credit score‚ small down payment‚ or high debt-to-income ratio. This expansion increased
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how securitization and structured products work and the value they add to finance‚ and how structured products are constructed‚ their value and how they are used in finance. The 2007 – 2009 financial crisis was a key catalyst for the global liquidity crisis that mutated into a full-blown credit crisis‚ bringing the international financial system to the edge of the abyss. In hindsight‚ the numerous structural shortcomings of the structured- finance securitisation market - particularly in the US - may
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What Causes an Economic Downturn? The financial crisis is still the cause of the economic downturn. Depending on which experts you choose to believe‚ the current state of economy was first cyclical than secular (Leonhardt‚ 2011). This resulted in both crisis being opposing destructive financial forces. The current global financial crisis begins with worthless subprime mortgages and the banking systems cease to cooperate with each other. The failure on Wall Street when the realization those
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of this paper. Fannie Mae (FNM) was created in 1938 as a mortgage association and in 1968 it became a Government Sponsored Enterprise (GSE). Freddie Mac (FM) also known as the federal home loan mortgage association was created as a GSE. Both organizations were in the business for buying mortgages from banks and turning them into mortgage backed securities. The differences of the two GSE’s are that FNM would tend to purchase mortgages from commercial banks while FM would buy from thrift banks
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Jiahui Chen Susan Finnerty BUS101 K 2014/9/11 Moody’s Credit Ratings and the Subprime Mortgage Meltdown 1.What did Moody’s do wrong‚ if anything? Moody’s committed no crime or infraction. Moody’s had decreased its ratings on lots of mortgage-backed bonds causing them to underestimate essential risks in these securities. 2.What stakeholders were helped‚ and which were hurt‚ by Moody’s actions? There are so many stakeholders benefited‚ they are shareholders‚ institution investors‚ and
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Term Capital Management collapse and Russian debt default of 1998. However‚ despite its ability to survive past disasters‚ the collapse of the U.S. housing market ultimately brought Lehman Brothers to its knees‚ as its headlong rush into the subprime mortgage market proved to be a disastrous step. Background and Company’s Growth On September 15‚ 2008‚ Lehman Brothers filed for bankruptcy. With $639 billion in assets and $619 billion in debt‚ Lehman’s bankruptcy filing was the largest in history
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