Год выпуска: 2010 Автор: Jon Schiller PhD Издательство: Страниц: 178 ISBN: 1450543189
Описание
The US and the World financial systems collapsed in the Fall of 2008 which caused the US Treasury to initiate bailouts for several major US corporations. The US Fed lowered the interest rates to zero %. The US Congress and Treasury provided bailouts to prevent corporations such as GM, AIG and banks from collapse. A big chunk of AIG's payments, $22.4 billion of $118.4 billion, was made to Wall Street firms like Goldman Sachs (GS Quote), Bank of America (BAC Quote), Merrill Lynch and Morgan Stanley (MS Quote), as well as to foreign banks like Societe Generale, Deutsche Bank (DB Quote) and Barclays (BCS Quote). These firms bought Credit Default Swaps (CDS) from the insurer. CDSs insure counterparties against major losses on debt investments. As the value of those investments declined, AIG was obligated to provide collateral payments to the firms that purchased CDS. This worsened the economic decline. The OEX S&P 100 index fell from 560.90 on 25-September-2008 to 411.90 on...
