Subprime mortgage crisis

SUBPRIME MORTGAGE CRISIS The immediate trigger of the 2008 financial crisis that started on the United States was the bursting of the US housing bubble, which saw its peak from the years of 2005-2006. Incredibly high default rates on “subprime” and on “adjustable rate mortgages” began to increase immediately after. From 2004-2007, lenders began originating big amounts of high risk mortgages. A long term trend of housing prices and an increase in incentives such as easy initial terms and conditions, ended up encouraging borrowers to assume difficult mortgages, believing they would be able to refinance these loans at favorable terms. Some of the worst performing loans were securitized by diverse private investment banks. By the time interest rates rose in the US, housing prices began to drop moderately around 2006 and 2007 in several regions of the US. Consequently, the process of refinancing these loans became more expensive. By then, defaults increased dramatically, the home prices didn’t go up as expected, and the mortgages interest rates reached higher levels. In the years anticipating the financial crisis, the US received significant amounts of foreign investments, which had their attention caught by the great inflows of money entering the American economy, combined with low interest rates. A mix of low interest rates with easy credit conditions encouraged millions of people to invest, contributing to the development of both housing and credit bubbles. With…

THE IMPACT OF THE FINANCIAL CRISIS ON THE BANKING SYSTEM OF PORTUGAL The world has been rocked by the most major financial and economic crisis in the recent history. It began in 2008 with the collapse of a few banks and financial institutions in the largest economy of the world. The volume of the stock market fell sharply, the whole financial system collapsed. It increased the instability of the financial sector. The crisis has made banking systems of many European countries more…

Outline 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 Century Case 8-29 Kellogg Case – Investment Banking in 2008 (A): Rise and Fall of the Bear Instructions 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…

A CRISE ECONÔMICA DE 2008: REPERCUSSÕES NO PIB E NAS EXPORTAÇÕES BRASILEIRAS Vitório Reinaldo Backes1 Steici dos Santos Gonçalves2 Lucas Sommer Kunzler3 Geovani de Oliveira Paranhos4 RESUMO O artigo tem por objetivo a análise dos impactos ocasionados pela crise econômica de 2008 de uma perspectiva brasileira. Essa análise insere o Mercado Comum do Sul (MERCOSUL), bloco econômico estabelecido em 1991 através do Tratado de Assunção firmado por Brasil, Argentina, Paraguai e…

UNIVERSIDADE BANDEIRANTE DE SÃO PAULO Jacqueline Ferreira RA. 111.323.630 Janaina Gizelda RA. 111.453.178 Lilian Renata Lucas RA. 111.551.803 Luciana da Rosa Thamires de Abreu Barriunuevo RA. 100.860.190 RA. 111.521.114 Análise de Risco de Crédito após 2008 SÃO BERNARDO DO CAMPO 2012 CURSO DE TECNOLOGIA EM GESTÃO FINANCEIRA Jacqueline Ferreira RA. 111.323.630 Janaina Gizelda RA. 111.453.178 Lilian…

Part I: How We Got Here The American financial industry was regulated from 1940 to 1980, followed by a long period of deregulation. At the end of the 1980s, a savings and loan crisis cost taxpayers about $124 billion. In the late 1990s, the financial sector had consolidated into a few giant firms. In March 2000, the Internet Stock Bubble burst because investment banks promoted Internet companies that they knew would fail, resulting in $5 trillion in investor losses. In the 1990s,…

importantes instituições financeiras do mundo, Citigroup e Merrill Lynch, nos Estados Unidos; Northern Rock, no Reino Unido; Swiss Re e UBS, na Suíça; Société Générale, na França declararam ter tido perdas colossais em seus balanços, o que agravou ainda mais o clima de desconfiança, que se generalizou. No Brasil, as empresas Sadia,7 Aracruz Celulose8 e Votorantim9 anunciaram perdas bilionárias. Para evitar colapso, o governo norte-americano reestatizou as agências de crédito imobiliário…

international accounting standards in Brazil, which occurred in 2008, following the same approach of previous studies, such as Niskaen, Kinnunen and Kasanen (2000); Bartov, Goldberg and Kim (2005); Barth, Landsman and Lang (2008); Morais and Curto (2008); Kadri, Aziz and Ibrahim (2009); Chalmers, Clinch and Godfrey (2009) and Lima (2010). For this, it was carried out a R2 comparasion, before and after convergence, between the regressions of each accounting proxy (earnings - LLPA and…

evidenciou razoavelmente que as medidas pontuais adotadas pelo governo brasileiro não estão produzindo os resultados esperados para amenizar os efeitos da crise no país. Palavras-chave: Crise financeira e econômica mundial; medidas para redução dos efeitos da crise; crescimento; Brasil. The Brazilian Economy Facing the World Economic and Financial Crisis Abstract: In this article we have to evaluate whether the decisions being taken by the Brazilian government are most appropriate to…

(subprime crisis), que começou no setor de compra e venda de títulos hipotecários de imóveis residenciais nos EUA, acabou se transformando numa grave crise financeira de grande proporção para toda economia norte-americana. Ocorre que, devido os laços da economia norte-americana com o resto do mundo, a escalada da crise financeira ganhou uma dimensão mundial contaminando os países desenvolvidos e em desenvolvimento. Assim sendo, convive-se agora com uma crise financeira global…