Too Big to Fail Practice Question Exam With Complete Answers.
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Course
FALI
Institution
FALI
What did the Treasury Department do for "Bear" and JP Morgan? - correct answer bailed them out when they were failing, they weren't bailing out Lehman Brothers and B of A
What was the conversation Secretary Paulson had with the Chinese Finance Minister at the...
Too Big to Fail
What did the Treasury Department do for "Bear" and JP Morgan? - correct answer
bailed them out when they were failing, they weren't bailing out Lehman Brothers and B of A
What was the conversation Secretary Paulson had with the Chinese Finance Minister at the Beijing
Olympics about? - correct answer Chinese have a lot of money invested and Russia
is telling them to pull their money out. This could make the US economy crash
Why did the proposed deal to have Barclay's Bank buy Lehman Brothers fall apart? - correct answer
British government did not allow the deal to go through, saw too much risk in Lehman Brothers
Why did the negotiations between Lehman and "the Koreans" break down? - correct answer
Dick Fuld was scared they would lose too much money if they sold a significant amount of the company
to the Koreans
Why didn't the Chairman of the SEC order Lehman to file for bankruptcy? - correct answer
Dick Fuld refuses to comply with governmental orders
bancruptcy - correct answer company isn't making enough money to pay off debts
Why was A.I.G. in so much financial trouble? - correct answer They had insured a lot
of the failing banks and invested in default credit swaps
the economy runs on credit - correct answer most people use credit (loans or
borrowed money) to purchase things they wouldn't with real money
big companies and revolving credit lines with banks - correct answer they only pay
interest on what they borrowed from the bank
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