FINANCIAL CRISIS OF OUR TIME WHAT HAS HAPPENED In September 2008, the Bankruptcy of Lehman Brothers and the collapse of AIG, following the demise of Bear Stern and the near collapse of Merrill Lynch triggered a financial crisis. The result was a global recession which cost the World tens of trillion of dollars, rendered 30million people unemployed and doubled the national debt of the U.S. But this crisis was not an accident. It was caused by an out of control calamitous financial industry. In
Words: 2237 - Pages: 9
Financial Institutions Center Commercial Bank Risk Management: an Analysis of the Process by Anthony M. Santomero 95-11-C THE WHARTON FINANCIAL INSTITUTIONS CENTER The Wharton Financial Institutions Center provides a multi-disciplinary research approach to the problems and opportunities facing the financial services industry in its search for competitive excellence. The Center's research focuses on the issues related to managing risk at the firm level as well as ways to improve productivity
Words: 16085 - Pages: 65
Financial Institutions Center Commercial Bank Risk Management: an Analysis of the Process by Anthony M. Santomero 95-11-C THE WHARTON FINANCIAL INSTITUTIONS CENTER The Wharton Financial Institutions Center provides a multi-disciplinary research approach to the problems and opportunities facing the financial services industry in its search for competitive excellence. The Center's research focuses on the issues related to managing risk at the firm level as well as ways to improve productivity
Words: 16085 - Pages: 65
Brief Overview of the IFCI case The Industrial Corporation of India (IFCI) was the first development financial institution (DFI) in India, and it was founded in 1948. The IFCI contributed greatly to the enhancement of Indian industry by providing loans. In fact, they were designed to provide medium and long term financing to large-scale business. IFCI have assisted more than 6000 firms and it helped developing key sectors such as sugar and textile cooperative. They also created direct and indirect
Words: 514 - Pages: 3
Olympics. Add that up to the failure of implementing consistent economic reforms and lending with despicable returns eventually led Greece vulnerable to a debt crisis. In result of this, Fitch ratings agency cuts Greece’s credit rating from an A- to a BBB+, first time in 10 years that the country has seen its ratings below an A grade. This will prove to be a big blow to the country as it now pushes up the cost of borrowing money. It will also be viewed by their foreign investors as a financial void as
Words: 776 - Pages: 4
ever increasing prices of assets allowed ever increasing capacity to borrow. e) The sub-prime mortgage market where it was allowed to originate loans of poor credit quality by one player and sell it to others in a mortgage pool. Hence creating an incentive problem where the one who originates poor quality credit did not bear the credit risk for it. f) All these led financial institutions to the fallacy of being “too big to fail”. g) The fallacy that every risk can be quantified and managed
Words: 2780 - Pages: 12
European Debt Crisis Adelina Valencia Dr.Huang BUS 5200 April 27, 2013 European Debt Crisis On-line Mini Project The Eurozone debt crises all began when a newly elected government official took office in Greece in 2009. The prime minister announced that the deficit for Greece was 12.7% of GDP not 5% and said that the previous government had lied about this. This is what first started the European Debt Crisis. The government in Greece in May of 2010 announced that the budget deficit was much larger
Words: 1197 - Pages: 5
you for your interest in Excelsior College. Complete this application if this is your first time applying to Excelsior College or if you were enrolled in the School of Nursing within the last five years and have since earned additional collegelevel credit. If you have withdrawn from a business, health sciences, liberal arts, or technology degree program within the last five years, please contact your Academic Advising Office as you may not be required to submit an application. If you are a graduate
Words: 4543 - Pages: 19
Comptroller’s Handbook April 1998 A Assets Loan Portfolio Management Table of Contents 1 1 3 11 13 13 14 15 15 17 19 20 22 22 22 24 24 25 26 27 27 28 29 30 32 33 34 36 36 37 37 38 38 Introduction Overview Risks Associated with Lending Credit Culture and Risk Profile Loan Portfolio Objectives Strategic Planning for the Loan Portfolio Financial Goals Risk Tolerance Portfolio Risk and Reward The Loan Policy Loan Policy Topics Loan Approval Process Portfolio Management Oversight Risk Identification
Words: 27064 - Pages: 109
else. Bloomberg says it is related to the firm's activities leading to the credit crisis. A Goldman source told CNBC that the request for information is "broad." COO Gary Cohn said on a conference call that he doesn't believe any new information will be uncovered. The Senate Committee's report on the financial crisis revealed numerous examples of egregious behavior by banks and ratings agencies. For example: ratings agencies screwed with criteria, and Deutsche Bank built a $4 billion short by "duping
Words: 348 - Pages: 2
