The Academic Analysis of the 2008 Financial Crisis: Round 1 1. Matthew Spiegel + Author Affiliations 1. Yale School of Management 1. Send correspondence to Matthew Spiegel‚ Yale School of Management‚ P.O. Box 208200‚ New Haven‚ CT 06880-8200‚ telephone: 203-432-6017‚ email: matthew.spiegel@yale.edu. Next Section Abstract Academics responded to the challenges posed by the 2008 financial crisis with a flurry of studies. This collection of articles is just the academic community’s
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SHEILA BAIR ... FDIC [Federal Deposit Insurance Corp.]‚ established 75 years ago in the Great Depression. ... How does it feel being head of FDIC during another grand crisis? It ’s a very important place to be right now. We ’re getting a lot of media attention‚ and I think that ’s positive because I think the FDIC is all about public confidence. That ’s how we maintain the stability with people having confidence in our brand and our insurance guarantee‚ and I think we ’ve done that fairly successfully
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This was until a bill by the name of Dodd-Frank was signed into law in 2010. This well intentioned piece of legislation clamped down on banks’ ability to invest in subprime mortgages and offered increased protections to consumers. However the un-foreseen consequences was a little piece of regulation that limits the amount of personal loans out at one time to ten. My grandfather had funded his company with the majority of
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We believe that everyone should be able to understand how the financial crisis came about‚ what it means for all of us‚ and what our options are for getting out of it. Unfortunately‚ the vast majority of all writing about the crisis – including this blog – assumes some familiarity with the world of mortgage-backed securities‚ collateralized debt obligations‚ credit default swaps‚ and so on. You’ve probably heard dozens of journalists use these terms without explaining what they mean. If you’re confused
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Federal Reserve’s Response to the Financial Crisis Emily Gibson ECON 315 Money‚ Banking‚ and Monetary Economics Fall 2012 The Beginnings of the United States Financial Crisis The world financial crisis began in 2006 in the United States housing and related mortgage markets. Soon it spread to the entire U.S. economy and then to the rest of the world. In August 2007‚ the turmoil moved from the securitized U.S. mortgage markets to the interbank lending market
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these ‘bad’ or ‘sub-prime’ mortgages under the mentality that if the new home owners were to foreclose‚ the property would have a higher value than what it originally was due to the climbing real estate market‚ meaning that the bank would not lose money but make a profit! What actually happened was that the real estate market crashed‚ and banks were out of pocket due to the massive numbers of foreclosures on mortgages occurring. This set off the global financial crisis‚ which led to a global economic
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merger. This oversight created the terrifying specter of Morgan failing to acquire Bear but nonetheless remaining on the hook for billions in potential losses from Bear trades gone awry. Holding negotiating leverage for the first time since the crisis began‚ newly minted Bear CEO Alan Schwartz pushed JP Morgan CEO James Dimon to up the final offer price from $2. In the ensuing week-long fracas‚ Bear once again appeared headed for bankruptcy‚ this time via a Chapter 7 liquidation that would have
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Global: Globalization trend started in 2002 ‚Global Transaction Service was created to integrate Cash ‚Trade and Treasury Services and Global securities Services .It offered integrated cash management ‚fund services ‚ securities services ‚ trade services and finance to MNC’s ‚ financial institutions and the public sector around the world. Their objective was to help corporate customers gain greater control over financial positions both locally and globally‚ increase efficiency and reduce costs
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operating globally with headquarters in New York. The firm had been in operation for 85 years when its outsized position in subprime mortgages raised questions from investors‚ clients‚ and counterparties about the bank’s balance sheet and the quality of its assets. A failed hedge fund sponsored by a subsidiary of the bank in 2007 had brought unwanted questions about subprime loans in general in an increasingly wary market. Bear Stearns had a reputation as an aggressive trading bank willing to take
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ADMAP REVIEW OF THE MOVIE – INSIDE JOB Rohan Rambhia | PGP-10-155 Inside Job is an exemplary recount of how administrator’s role when exploited to form risky administrative strategies by means of faulty processes lead to a crisis of the stature of the recession of 2008. It is a comprehensive documentary which narrates the history of the collapse‚ not only going into great‚ informative depth about the risk-based strategies that put the global economy on the line‚ but looks back to the rise
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