US Financial Crisis: A Story of Smart Bankers and Laid Back Regulators?
Code : ECC0011
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Region : US |
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Abstract: Immediately post US Financial Crisis in 2008, the blame game began as to who was responsible for the gargantuan financial crisis. While some blamed the regulators for their laxity and inaction in monitoring the financial markets, many others said that the greed of the Wall Street bankers was responsible for the mess. It was even suggested that the smart investment bankers outplayed the regulators in circumventing the rules and regulations. The case study discusses the role of the bankers and the regulators in the US economy and to what extent were they responsible for the financial crisis. The dilemma in the case is whether the idea of laissez faire is stretched too far. |
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Pedagogical Objectives:
Keywords :Financial crisis, Federal Reserve, SEC, Subprime, Mortgage, Interest rate, Housing, CAMEL, Basel, Banking regulations, Financial markets, Deregulation
Contents :
» US: Role of Regulators and Investment Bankers
» Wrestle between Bankers and Regulators