Date to turn in
10 – 22 HBS 9-709-045 US Subprime Mortgage Crisis: Policy Reactions (B)
8-22 The First Global Financial Crisis of the 21st CenturyCase
8-29 Kellogg Case – Investment Banking in 2008 (A): Rise and Fall of the Bear
All students should read and analyze the above cases prior to the lectures▪ In the due date each group should turn in the beginning of the lecture a typed summary containing a brief outline of the problem and how you would solve that situation. I suggest you print twocopies because one should remain with the group for the discussion.
▪ Then, we will have the discussion with all the groups about the possible approaches for the solution of the caseGuideline for HBS 9-709-045 US Subprime Mortgage Crisis: Policy Reactions (B) and The First Global Financial Crisis of the 21st Century Case
1) What are the reasons that the Federal Reservebailed Bear Sterns but refused to do the same in the Lehman case?
2) What were the additional measures taken by the Federal Reserve to try to induce markets to start lending again? In otherwords, what were the Fed liquidity facilities that were created? What is the by product of these facilities (what are the negative side effects)?
3) What are the criticisms against the TARP?4) What is the meaning of nationalization in the US financial system? Would all the commercial banks become property of the US government? What is the core argument of those who defended that view?5) In the aftermath of the crisis (Oct-Nov 2008), why leaders were pushing for a global and coordinated fiscal stimulus?
6) Why were countries enacting protectionist barriers during thisperiod?
7) What role did the IMF play in the current global financial crisis?
Guideline for Kellogg Case – Investment Banking in 2008 (A): Rise and Fall of the Bear