Question

During the summer and fall of 2008, the U.S. financial system and financial systems around the...

During the summer and fall of 2008, the U.S. financial system and financial systems around the world appeared to be on the verge of collapse. How did we get into this condition? What did we do to get out of it? How can we prevent another such scenario in the future?​

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

During 2008, lehman brothers filed bankrupcy. Lehman brothers was fourth largest US investment bank at that time. The reason for downfall was excessive lending to other financial institutions which had liberal rules regardin loan disbursement. For example if MR A is unable to get loan from Lehman  brothers he will simply take loan from other financial institution who had got loan from  Lehman brothers.

Thus strick credit norms are very essential to prevent such situation in future

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Management of Financial Institutions The Federal Reserve (Fed) System consists of, a. Board of Governors, b....
Management of Financial Institutions The Federal Reserve (Fed) System consists of, a. Board of Governors, b. Federal Reserve Banks and Branches over the country, and c. The Federal Open Market Committee. The Fed has centralized as the U.S. has evolved from a confederation of regional economies to a truly national economy. The 12 Federal Reserve Banks, once largely autonomous in their respective regional districts, remain operationally important but have lost their authority to set monetary policy. They are a minority...
Financial regulations are rules created and imposed by the government on financial institutions, such as banks....
Financial regulations are rules created and imposed by the government on financial institutions, such as banks. The objective of financial regulations is to prevent the abuse of financial services to customers, to protect the savings of the public, and to keep the financial economy stabilized (Rose, Hudgins 2008 p. 31). It is accurate to state that the impact of past financial crises has established and contributed to the amelioration of financial regulation over the decades. In 1929 when the Great...
what are the four stages of the cardiac cycle: Include the Blood Pressure Numbers during the...
what are the four stages of the cardiac cycle: Include the Blood Pressure Numbers during the phases. At what point is hypertension diagnosed? At what phase will we feel the systemic pulse. What does an abnormal ECG look like and what pathology is it indicative of (there are many just select one)? List four risk factors and one comorbidity. Long term hypertension may lead to what structural changes in the heart? I order to maintain my own health and not...
A crisis needs a firewall not a ringfence By Alistair Darling Fortunately I’ve only ever had...
A crisis needs a firewall not a ringfence By Alistair Darling Fortunately I’ve only ever had to take one telephone call that made my blood run cold. On the morning of October 7, 2008, Sir Tom McKillop, the then chairman of Royal Bank of Scotland, called me to say that his bank was fast running out of money. He asked me what I was going to do about it. This was three weeks after the collapse of Lehman Brothers. The...
Answer True or False: 1. Classification criteria for economic system include decision-making systems, mechanisms for information...
Answer True or False: 1. Classification criteria for economic system include decision-making systems, mechanisms for information and coordination, incentive structures, property rights, and mechanisms for public choices. 2. All economic systems can be classified as market capitalism or centrally planned socialism. 3. Generally speaking, transition economies emerging from the former Soviet Union have done least well with transition, while those of Central and Eastern Europe have done the best. 4. Capitalism relies primarily on material incentives, while planned socialism and...
1. In which phase of the business cycle is the U.S. economy currently in? ________________. How...
1. In which phase of the business cycle is the U.S. economy currently in? ________________. How many months has the U.S. economy been in this stage of the business cycle? ___________ months 2. How long has the current expansion/recovery lasted to date? _________________ How does this compare to the average length of U.S. recessions since 1854? ______________________________. 3. What do the last four recoveries/expansions (that is, the current recovery/expansion and the previous three recovery/expansions), suggest about a new trend in...
Comment you thought on this discussion 100 plus words DISCUSSION Red Bull Red bull has been...
Comment you thought on this discussion 100 plus words DISCUSSION Red Bull Red bull has been giving consumers “wings” since 1987. Red Bull is an Austrian company with the highest market share of any energy drink in the world. The company is #76 on the “Forbes Most Powerful Brand List” in 2015 and is continuing to grow. From the beginning, their marketing strategy has centered around brand awareness and word of mouth through viral videos and event marketing. The company’s...
K. Choi, chief financial officer for Petrie Electronics, came early to the quarterly IS Steering Committee...
K. Choi, chief financial officer for Petrie Electronics, came early to the quarterly IS Steering Committee meeting. Choi, who was the chair of the committee, took his seat at the head of the big table in the corporate conference room. He opened the cover on his tablet PC and looked at the agenda for the day’s meeting. There were only a few proposed systems projects to consider today. He was familiar with the details of most of them. He briefly...
Sportswear company O'yeah designs and sells wetsuits to the U.S. market. The designs of the wetsuits...
Sportswear company O'yeah designs and sells wetsuits to the U.S. market. The designs of the wetsuits are updated each year. The process for updating the design typically starts in January the year before the designs are to be released. At this time, the purchasing, design, and sales departments have a two-day meeting to discuss the product portfolio for the upcoming year, including design, functionality, and price. In March, the designs are finalized, and the purchasing department starts negotiating with suppliers...
Government is cleaning up the way companies do business after accounting and governance scandals rocked investor...
Government is cleaning up the way companies do business after accounting and governance scandals rocked investor confidence and damaged the reputation of companies large and small. The Sarbanes-Oxley Act (SOX) of 2002 was enacted in response to the high-profile Enron and World Com financial scandals to protect shareholders and the public from accounting errors and fraudulent practices by organizations. One primary component of the SOX is the definition of which records are to be stored and for how long. For...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT