Chapter 5

Chapter 5

4) The authors make it clear that the main source of market failure with collateralized debt obligations lay almost exclusively with the rating agencies. 5) Credit Default Swaps are highly regulated financial instruments as a result of the Commodity Futures Modernization Act of 2000. 5.3 The Fallout: The Crisis of 2007 and 2008 1) Bear-Stearns is the largest single bankruptcy in U.S. history. 2) The international credit crisis began in full force in September 2008. 3) Near the end of the U.S. housing boom many of the mortgages classified as Alt-A were in fact sub-prime. 4) LIBOR stand for the London Interbank Offered Rate. 5.4 The Remedy: Prescriptions for an Infected Global Financial Organism 1) The authors conclude the chapter with a specific road map for future financial regulation. 2) Baring the (hopefully temporary setback of 2008) capital is more mobile today than ever before. 3) Securitization is likely to be declared illegal in the U.S. though it may still exist elsewhere in the world. The then make it clear that the main source of market for with cold to lay almost exclusively with the rating agencies Credit Default Swaps are highly regulated financial instruments as a result of the rares Modernization Act of 2000. 3 The Fallout: The Crisis of 2007 and 2008 1) Bear Steams is the largest single bankruptcy in U.S. history 2) The international credit crisis began in full force in September 2008 3) Near the end of the U.S. housing boom many of the mortgages classified as Alt-A were in fact sub-prime. LIBOR stand for the London Interbank Offered Rate. SA The Remedy: Prescriptions for an Infected Global Financial Organism 1) The authors conclude the chapter with a specific road map for future financial regulation 2) Baring the hopefully temporary setback of 2008) capital is more mobile today than ever before 3) Securitization is likely to be declared illegal in the U.S. though it may still existelsewhere in the world 4) The authors make it clear that the main source of market failure with collateralized debt obligations lay almost exclusively with the rating agencies. 5) Credit Default Swaps are highly regulated financial instruments as a result of the Commodity Futures Modernization Act of 2000. 5.3 The Fallout: The Crisis of 2007 and 2008 1) Bear-Stearns is the largest single bankruptcy in U.S. history. 2) The international credit crisis began in full force in September 2008. 3) Near the end of the U.S. housing boom many of the mortgages classified as Alt-A were in fact sub-prime. 4) LIBOR stand for the London Interbank Offered Rate. 5.4 The Remedy: Prescriptions for an Infected Global Financial Organism 1) The authors conclude the chapter with a specific road map for future financial regulation. 2) Baring the (hopefully temporary setback of 2008) capital is more mobile today than ever before. 3) Securitization is likely to be declared illegal in the U.S. though it may still exist elsewhere in the world. The then make it clear that the main source of market for with cold to lay almost exclusively with the rating agencies Credit Default Swaps are highly regulated financial instruments as a result of the rares Modernization Act of 2000. 3 The Fallout: The Crisis of 2007 and 2008 1) Bear Steams is the largest single bankruptcy in U.S. history 2) The international credit crisis began in full force in September 2008 3) Near the end of the U.S. housing boom many of the mortgages classified as Alt-A were in fact sub-prime. LIBOR stand for the London Interbank Offered Rate. SA The Remedy: Prescriptions for an Infected Global Financial Organism 1) The authors conclude the chapter with a specific road map for future financial regulation 2) Baring the hopefully temporary setback of 2008) capital is more mobile today than ever before 3) Securitization is likely to be declared illegal in the U.S. though it may still existelsewhere in the world