Crisis: Need for Reforms Jason Khan – 212857264 Yiwen Shen – 212828810 Alexander Grynszpan – 212811618 Xueyan wu - 212828380 INTRODUCTION Mortgage Backed Securities Lack of Regulations in the Banking System Lack of Regulations in the Credit Rating Agencies Subprime Mortgages Financial Crisis of 2007-2009 Lack of Regulations of over-thecounter derivatives Introduction to the Financial Crisis Causes of the Financial Crisis Reforms introduced International response Conclusion
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chapter three. While the stock market was intensely regulated and mostly transparent, the bond market consisted of primarily large institutions and escaped serious regulation. This lack of legislative control played a great part in allowing the credit default swaps on subprime mortgage bonds, CDO’s, and the eventual collapse of the subprime market. Following the subprime mortgage crisis, the Department of the Treasury released a new regulatory plan, The Department of the Treasury Blueprint for
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deposit ratings of four Philippine banks after announcing the same decision on the country’s credit rating. These banks are the Sy-led Banco de Oro Unibank (BDO), Ayala-led Bank of the Philippine Island (BPI), government financial institution Land Bank of the Philippines (Landbank) and Ty-led Metropolitan Bank & Trust Company (Metrobank). These banks local and foreign currency deposits are rated ‘Ba1/Not Prime’. Also under review is BDO’s foreign currency senior unsecured debt rating of ‘Ba1’
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Leo Kee Chye Tutorial Day / Time: Monday / 2pm Table of Contents Abstract The Tech Bubble Introduction Lowering of Interest Rates Adjustable Rate Mortgage Securitization Mortgage Backed Securities Collateralized Debt Obligation Credit Default Swap Government Reaction and Policies Emergency TARP Repercussions Basel Disadvantages Future Policy Requirements Controversy Conclusion Reference List Review of the causes of the 2008 Financial Crisis in US. Abstract
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pertinent to this crisis included: the adjustable-rate mortgage; the bundling of subprime mortgages into mortgage-backed securities (MBS) or collateralized debt obligations (CDO) for sale to investors, a type of securitization; and a form of credit insurance called credit default swaps(CDS). These products vary in complexity and the ease with which they can be valued on the books of financial institutions. Another financial innovation is the growth of securitization was lauded by most financial industry
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A Treasurer's Guide to Money Market Funds 2012 The World Behind Fitch’s MMF Ratings by Charlotte Quiniou, CFA, Director in Fitch Ratings Fund and Asset Manager Rating Group Fitch money market fund (MMF) rating is far more than just a stamp on a fund. Its value for investors comes from the depth and breadth of the underpinning rating analysis and process. A key component of a Fitch MMF rating is also the regular, independent surveillance performed by Fitch’s analysts, which supports ongoing dialogue
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residential loans are single-family, performing (one-to-four family) mortgage loans that conform to Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) guidelines and/or standards. In 1997, these agencies had more than $3 trillion of outstanding mortgage securities backed by conforming residential loans. Nonconforming Residential Loans Nonconforming residential loans are single-family, performing (one-to-four family) mortgage loans that do not conform
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The Credit Crunch of 2007: What Went Wrong? Why? What Lessons Can Be Learned? First draft: September 2008 This draft: May 2009 John C. Hull* Joseph L. Rotman School of Management University of Toronto Abstract This paper explains the events leading to the credit crisis that began in 2007 and the products that were created from residential mortgages. It explains the multiple levels of securitization that were involved. It argues that the inappropriate incentives led to a short‐term focus in the decision making of traders and
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The Credit Crunch of 2007: What Went Wrong? Why? What Lessons Can Be Learned? First draft: September 2008 This draft: May 2009 John C. Hull* Joseph L. Rotman School of Management University of Toronto Abstract This paper explains the events leading to the credit crisis that began in 2007 and the products that were created from residential mortgages. It explains the multiple levels of securitization that were involved. It argues that the inappropriate incentives led to a short‐term focus in the decision making of traders and
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Counter Party Credit Rating Under Basel II-A Challenge for Finance Managers 1 WELCOME Counter Party Credit Rating Under Basel IIA Challenge for Finance Managers 2 Discussion Summary 1. 2. 3. 4. Basel Vs. Risk Management BaselBasel-II Road Map and Objectives BB Guideline of Basel-II implementation BaselCounter Party Rating by ECAI in determining Capital Adequacy of Corporate 5. How to face ECAI by counter parties for good rating 6. Question and Answer 3 Basel Vs. Risk Management
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