liquidity-crisis

Learning objectives: Describe the major lines of business in which dealer banks operate and the risk factors they face in each line of business. Identify situations that can cause a liquidity crisis at a dealer bank and explain responses that can mitigate these risks. Describe policy measures...

Learning objectives: Examine how the clearing of over-the-counter transactions through central counterparties has affected risks in the financial system. Assess whether central clearing has enhanced financial stability and reduced systemic risk. Describe the transformation of counterparty risk...

Learning objectives: Describe the key factors that led to the housing bubble. Explain the banking industry trends leading up to the liquidity squeeze and assess the triggers for the liquidity crisis. Explain how banks created collateralized debt obligations. Explain the purposes and uses of...