https://padlet.com/ksalamone2/f9add42u7c55hun8 Made with panache en-us 2022-01-25 17:25:16 UTC 2022-02-07 19:05:31 UTC hello@padlet.com ksalamone2 https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2011780330 Hank Paulson- Secretary of Treasury
George W. Bush- 43rd president during the crisis
Ben Bernanke- Chairman of the Federal Reserve ]]> 2022-01-25 17:29:15 UTC https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2011780330 ksalamone2 https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2011789854 Why did the banks start to crash?
- Reckless behavior by banks (loaning to unqualified people)
- Low Adjustable-rate mortgages (rates were not fixed, so rates started to go up)
Housing Bubble: caused people to be house poor (person who spends a large sum of money on their house)
Banks needed bailouts either by:
-the government which comes with oversight & regulations
-borrow from the private sector (Bank Friends -JP Morgan)
Too Big to Fail VS Implicit Guarantees- expectation that the government will bail out failing businesses
Golden Parachute (paying the CEO who let the company go under) VS Old Testament Justice (to make right-- somebody has to pay)
Rugged Individualism- (Hoover)- The Government is not responsible for solving the people's problems
(FDR)- implemented programs to help in financial crisis

]]> 2022-01-25 17:33:13 UTC https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2011789854 ksalamone2 https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2011966909 Adjustable-rate mortgages were going up which caused foreclosures to increase by 1000%
When the banks needed more money, they raised the adjustable rates]]> 2022-01-25 18:45:55 UTC https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2011966909 ksalamone2 https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2011973941 -5th largest bank in the US is asking for 29 Billion
-J.P. Morgan bought Bear Stearns for $10/share

]]> 2022-01-25 18:49:02 UTC https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2011973941 ksalamone2 https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2014127188 -Fannie Mae and Freddie Mack Controlled 50% of US home mortgages
-They asked for 90 million to prevent them from going under
The private sector could not help and they were too big to fail  -The government takes control. Paulson and Bush chose to Nationalize (private ownership to public) and fired the CEO (Golden Parachute) ]]> 2022-01-26 17:39:39 UTC https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2014127188 ksalamone2 https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2014138422 -The government did not bail out this failing bank
-Bank of America bought Merrill Lynch (another bank)
-Barclays bailed on buying
- This led to Lehman going under

]]> 2022-01-26 17:44:19 UTC https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2014138422 ksalamone2 https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2014160112 -Lending Market "Dried Up"= Banks didn't have the money to lend
- Business that depend of borrowing had no access to money


]]> 2022-01-26 17:53:07 UTC https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2014160112 ksalamone2 https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2016381190 AIG- (Insurance Company) insured banks in the event of failure. AIG needed 85 Billion to remain in business. No private sector could help. They were bailed out by the government and the CEO of AIG was fired.]]> 2022-01-27 17:20:15 UTC https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2016381190 ksalamone2 https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2016415745 TARP- Troubled Asset Relief Program
Legislative money that gives the President 700 Billion to buy the troubled banks]]> 2022-01-27 17:36:29 UTC https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2016415745 ksalamone2 https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2016417973 CEO's were called into a meeting.  They were given the option of taking money now or pay the price later.  (One time offer) 
-They all signed]]> 2022-01-27 17:37:29 UTC https://padlet.com/ksalamone2/f9add42u7c55hun8/wish/2016417973