The Collapse Of The Great Depression Essay

1717 Words Nov 8th, 2016 7 Pages
“Too big to fail” is a term used to describe a company that has become so essential to the economic success of a country that the government of that country must take excessive measures to prevent that company from ceasing to trade or going bankrupt (Amadeo, 2016). In this case, company is plural and the country that took those extreme measures was the United States of America. The 2007-2009 financial crisis caught the world by surprise and led to a renewed interest in understanding the inner workings of our financial systems and the consequence of not abiding by the governmental rules put in place to regulate those financial systems. With the collapse of investment bank powerhouse, Lehman Brothers in 2008, the worst financial crisis since the Great Depression began. The Great Recession lasted for almost two years, and although it was not as big a disaster as the Great Depression of the 1930s, it still served a massive blow to the United States economic systems and economic systems around the world.
Citigroup, JPMorgan Chase, Bank of America, and Wells Fargo were among several banks to be bailed out by the National Economic Stabilization Act of 2008. This $700 billion bailout was created to purchase distressed assets, especially mortgaged-backed securities (Havemann, 2016). Although this financial crisis involved banks, insurance companies, and the automobile industry, the focus of this paper will be on the banks, one bank in particular, Citigroup. Throughout this paper I…

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