9ed FIN421 PP_CH001

7 the financial crisis of 2008 dodd frank reform act

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 49 1.7 The Financial Crisis of 2008 • The Shoe Drops • September 7, 2008: Fannie Mae and Freddie Mac put into conservatorship • Lehman Brothers and Merrill Lynch verged on bankruptcy • September 17: Government lends $85 billion to AIG • Money market panic freezes short-term financing market 1-50 1.7 The Financial Crisis of 2008 • Dodd-Frank Reform Act • Called for stricter rules for bank capital, liquidity, risk management • Mandated increased transparency • Clarified regulatory system • Volcker Rule: Limited banks’ ability to trade for own account 1-51 Figure 1.1 Short-Term LIBOR and Treasury-Bill Rates Figure and the TED Spread and 1-52 Figure 1.2 Cumulative Returns Cumulative returns on a $1 investment in the S&P 500 index 1-53 Figure 1.3 Case-Shiller Index of U.S. Housing Figure Prices Prices 1-54 1.8 Text Outline • Part One: Introduction to Financial Markets, Securities, and Trading Methods • Part Two: Modern Portfolio Theory • Part Three: Debt Securities • Part Four: Equity Security Analysis • Part Five: Derivative Markets • Part Six: Active Investment Management Strategies: Performance Evaluation, Global Investing, Taxes, and the Investment Process 1-55...
View Full Document

This document was uploaded on 02/27/2014 for the course FIN Derivative at San Diego State.

Ask a homework question - tutors are online