Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. discuss the global financial crisis (gfc). you may

Discuss the Global Financial Crisis (GFC). You may focus on particular aspects of the GFC. You...

90.2K

Verified Solution

Question

Finance

Discuss the Global Financial Crisis (GFC). You may focus onparticular aspects of the GFC. You may also mention earliersignificant economic and financial crises, and the extent to whichthey presage the GFC

Answer & Explanation Solved by verified expert
4.2 Ratings (690 Votes)
Traditionally the Investment banking model was like this Partners would bring in money invest it in assets as per their risk appetite and reap the benefits or bear the loss But during 1980s Investments bank went public in the US and now had more money to play with and during that period began the process of deregulation Saving and loan companies were allowed to gamble with public deposits with minimum regulation Wall street lobbied for more financial freedom and Allan Greenspan was appointed as chairman of Americas central bankThe federal Reserve by the then President Ronald Regan and was reappointed by Presidents Clinton and George WBush Consolidation of financial sector was taking place and the financial market was being dominated by few players who were getting bigger day by day and more powerful Banks liked monopoly power and knew when they are too big they will be bailed out in case something adverse happened And during 1990s a financial product called Derivatives was introduced However it made the market more unstable contrary to what bankers and economists believed Now bankers could bet on virtually anything stocks weather crops But the US government did not regulate derivatives under the pressure of lobbying from powerful banks even though Commodity    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Discuss the Global Financial Crisis (GFC). You may focus onparticular aspects of the GFC. You may also mention earliersignificant economic and financial crises, and the extent to whichthey presage the GFC

Other questions asked by students

Q

Use a 5% significance level. In a large city,  200  persons were selected at random and each person was...

Statistics
Q

A sample of 7.5 L of NH3 gas at 22 ∘C and 735 torr is...

Chemistry
Q

Which of the substances below does NOT travel in the blood and act on a receptor to...

Medical Sciences
Q

Kubin Company’s relevant range of production is 22,000 to 27,000 units. When it produces and sells...

Accounting
Q

21 Listen Two plant species live in the same biome but on different continents two...

Biology
Q

Use the Runge Kutta implementation in Matlab ode45 to find a numerical solution y 0...

Calculus
Q

What operation would you use to find the mass of an object given its density...

Algebra
Q

Assume you are working for a tech company. Every month, your company is selling 55...

Accounting
Q

Which of the following statements is true? Multiple Choice When the units produced are less...

Accounting
Q

Problem 1 What is the most important contribution of the Black and Scholes option pricing...

Finance
Q

Suppose a bonds price is expected to increase by 5% in price if its market...

Finance
Q

A project has the following cash flow pattern in years 0 through 5: -50,000; 14,000;...

Accounting