Question: Why would making CDSs an exchange-listed product have avoided the collapse of AIG and averted the 2008-9 financial crisis?

Why would making CDSs an exchange-listed product have avoided the collapse of AIG and averted the 2008-9 financial crisis?

Step by Step Solution

★★★★★

3.43 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To normalize the risk there is a push to co... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1343-B-F-A-F-V(693).docx

120 KBs Word File

Students Have Also Explored These Related Financial Accounting Questions!

Q:

In August 1982, a hog confinement building owned by Charles Ridenour collapsed and was rendered a total loss. Some of Ridenour's hogs were killed as a further result of the collapse. Ridenour made a...

Q:

Reinventing Nissan The 1 990s, however, were disastrous for many Japanese firms. The collapse of Japan's so-called bubble economy at the end of the 1980s condemned Japan to a decade of slow growth,...

Q:

1. Why did the European Commission bail out banks in Ireland and Greece? Why not let them default? 2. Investors demanded that Portugals José Sócrates and other leaders make...

Q:

THIS QUESTION IS DUE IN EXACTLY 1 HOUR AND 45 MINUTES. I WILL PAY EXTRA 10 DOLLARS IN TIP IF SOMEONE TYPES THE EXACT ANSWER REQUESTED. PLEASE RESPOND TO THE EACH AND EVERY QUESTION IN A TOTAL OF 3-4...

Q:

All views expressed in this paper are those of the authors and do not necessarily represent the views of the Hellenic Observatory or the LSE George Alogoskoufis Greeces Sovereign Debt Crisis:...

Q:

3. Read the following WSJ article and comment on some basic rules to mitigate risk: Risky Securities. Bankrupt in Just Two WeeksIndividual Investors Get Burned by Collapse of Complex Securities...

Q:

3. Read the following WSJ article and comment on some basic rules to mitigate risk: Risky Securities. Bankrupt in Just Two WeeksIndividual Investors Get Burned by Collapse of Complex Securities...

Q:

Please provide a comprehensive Bill Analysis for AB 839, as introduced, Addis. Residential care facilities for the elderly: financing. Here is the Link for the AB 839:...

Q:

The financial crisis in 2008 involved two financial innovations. These were the securitization of mortgages and other debts such as credit card debts and credit default swaps. Fannie Mae and Freddie...

Q:

Reply the article's abstract posed with a single phrase in ALL CAPS from the list below and then explain why you chose that word. The word is to reflect about the contents of the article. WOW...

Q:

Write store procedure called factorial that gets an integer number n and calculates and displays its factorial. You must use RECURSION to calculate the results. Example: 0! = 1 1! = fact(1) = 1 2! =...

Q:

A diesel engine working on dual combustion cycle has a compression ratio 10 and cut off ratio 1.5. The pressure at the beginning of the compression is 2 bar and the maximum pressure in the cycle is...

Q:

write out the form of the partial fractions 1 over x ^ 2 + x ^ 4

Q:

A market is described by the following supply and demand curves: QS = 2P QD = 300 P a Solve for the equilibrium price and quantity. b If the government imposes a price ceiling of $90, does a...

Q:

Omars business purchased several pieces of machinery some time ago for $25,000. At the beginning of the current year, this pool of assets had a UCC of $15,000. During the year, Omar decided to sell...

Q:

Suppose firms A and B have identical revenues and operating expenses, so that each has earnings before amortization and taxes of exactly $1 million. Both firms will report amortization of $200,000 on...

Q:

What is the apparent tax rate (tax paid as a percentage of net income) for firms A and B in Practice Problem 49?

Q:

Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): rRF=4%;rM=9%;RPM=5%, and beta =1.4 What is WCE's required rate of return? Do not round intermediate...

Q:

Bourdon Software has 9 percent coupon bonds on the market with 20 years to maturity. The bonds make semiannual payments and currently sell for 107.3 percent of par. What is the current yield on the...

Q:

H\&S Industries is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions): Required: 1-a. Calculate the inventory turnover ratio...