This case concentrates on the financial problems faced from their roots in subprime financing as well as August to December 2006 in the US. After briefly discussing mortgages were structured and marketed in the pre-1990 period, it describes subprime mortgage lending, together with other advanced mortgages. In addition, it discusses how these mortgages were packaged into securities, and who ultimately came to own these claims and their attendant threat. The instance subsequently describes the financial market ramifications of the rise in mortgage delinquencies, together with the pain inflicted by increasing foreclosures.
In addition, it chronicles the answer of European central banks and the US to the fiscal problems that are unfolding. Lastly, the case lays policies which were proposed to cope with the reasons for the disaster or either the outcomes. These include policies for shifting bankruptcy rules, reforming the oversight of the monetary system and regulating mortgage financing. Some attention is paid to the function of credit rating agencies in the catastrophe, and in the monetary system as a whole.
PUBLICATION DATE: January 18, 2008 PRODUCT #: 714C08-HCB-CHI
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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