The financial crisis affected everyone globally, with just about every major economy in a recession or doing everything they could to avoid one. To the East exports were failing and industries were having tough times operating because they could not get any loans from the West to finance operations. In Europe, governments started to buy large stakes in banks to avoid them from failing and the banks themselves sought private investors around the globe, specifically the Middle East to help maintain operations. Europe had to adopt a series of monetary policies to hold back the recession and give it a short life. They did this by reducing interest rates and encouraging public spending to pump money into their respective economies. The financial
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400 billion. Their assets however were highly leveraged and this was a significant cause for their failure during the crisis. They had no way of compensating for their collateralized debt obligations and they ultimately failed. They had to get bailed out by the Fed and sold to JP Morgan Chase for $10 a share, which is insane to think about considering their stock was trading for over $90 dollars a share earlier in 2008. The main failure of Bear Stearns is due to negligence on risk management and literally letting investments banks run wild.
Lehman Brothers was one of the largest investment banks in the US before the crisis, and had been operating successfully for over 150 years. Their bankruptcy and subsequent bailout caused a massive drop in the US economy. They announced their bankruptcy in Sept. of 2008 and were bought out by Barclays. Following their bailout, the Dow jones saw its largest single day loss.
These are just some examples in a much larger and grey area of exploration within the financial collapse of 2008. Some companies and people are still able to profit off the crash while others are still suffering for
400 billion. Their assets however were highly leveraged and this was a significant cause for their failure during the crisis. They had no way of compensating for their collateralized debt obligations and they ultimately failed. They had to get bailed out by the Fed and sold to JP Morgan Chase for $10 a share, which is insane to think about considering their stock was trading for over $90 dollars a share earlier in 2008. The main failure of Bear Stearns is due to negligence on risk management and literally letting investments banks run wild.
Lehman Brothers was one of the largest investment banks in the US before the crisis, and had been operating successfully for over 150 years. Their bankruptcy and subsequent bailout caused a massive drop in the US economy. They announced their bankruptcy in Sept. of 2008 and were bought out by Barclays. Following their bailout, the Dow jones saw its largest single day loss.
These are just some examples in a much larger and grey area of exploration within the financial collapse of 2008. Some companies and people are still able to profit off the crash while others are still suffering for