Inside the Meltdown Summary The stock of a global investment company, Bear Stearns, began to drop drastically on March 10th, 2008. A share of Bear Stearns was as high as $171 and by the afternoon dropped to $57. Former CEO of the company, Ace Greenberg, tells CNBC that all of these rumors are “ridiculous.” As time goes on, Bear Stearns’ cash reserves were disappearing and people invested in the company were immediately withdrawing. Bear Stearns was basically racing to find a company to buy them out or they would go under. Current CEO of Bear Stearns, Alan Schwartz, got ahold of JP Morgan’s CEO, Jamie Dimon, to buy out Bear. A ton of government officials come to Bear to look over their records and it is not a pretty sight. Bear was deep in toxic assets. The Federal Reserve was prohibited from lending any money to Bear so they used JP Morgan to bail out Bear Stearns. Unfortunately the company could not be saved and Bear Stearns was gone after being sold to JP Morgan at $2 per share. Fannie Mae and Freddie Mac, the two largest mortgage lenders in the world, lost 60% of their stock value in July 2008. The government fired the management and the feds took over both companies. Then in the beginning of September, Lehman Brothers, another investment bank, had their stock dropping quickly. It was once again toxic investments that once made them money before, but now was responsible for their company plummeting. The government would not intervene with Lehman and they let them fail. It turned out that Lehman Brothers was even more interconnected than anybody thought. Because of Lehman’s bankruptcy, no one could get a loan and everything freezes. The meltdown had begun. Then the world’s largest insurance company, AIG, has huge problems and doesn’t have the money to pay off promises they made that Lehman wouldn’t go bankrupt. AIG was in desperate need of cash and the government had to save them. The government used $85 billion dollars for bailout and now owned AIG.
... FDIC [Federal Deposit Insurance Corp.], established 75 years ago in the Great Depression. ... How does it feel being head of FDIC during another grand crisis?
It 's a very important place to be right now. We 're getting a lot of media attention, and I think that 's positive because I think the FDIC is all about public confidence. That 's how we maintain the stability with people having confidence in our brand and our insurance guarantee, and I think we 've done that fairly successfully….
people know the term "economic meltdown" (ehow.com, 2011). And the year 2011 proved to be a epic one in world history and brought dramatic change to many parts of the world - change that require cautious and serious analysis. International developments since World War II have drawn the nations of the world closer together in a global economy in which labour and capital move across borders. When an economic crisis in one area spreads around the world, a global meltdown may result.
The global financial….
Leir Center Financial Bubble Research
Working Paper #7
2007-2009 Financial Meltdown
New Jersey Institute Of Technology
In the Fall of 2007 the Dow Jones Industrial index reached an all time high over 14,000. By November 2008 it had fallen under 8000. Other stock market indices worldwide including the high growth emerging economies of India and China saw similar or greater drops. Those predicting these economies had developed an Asian regional economy that would prove relatively….
Global Meltdown and its Impact on Indian Economy
In 2007 end, the Organisation for Economic Co-operation and Development (OECD) commented that "the current economic situation is in many ways better than what we have experienced in years. Our central forecast remains indeed quite benign".
Three months later, the financial crisis began: the US stock market started its long decline and house prices fell. Financial institutions began to resemble tenpins rather than the pillars of society they had….
1) Jay Nguyen’s Ethical Dilemma and the reasons for this occurrence:
The dilemma present in the case study is a managerial dilemma at Concord machines. Jay Nguyen, the President and CEO, has to choose either Robert Dunn, senior Vice President, General Manager of Services or Annette, Innella Vice President of Knowledge Management will be continuing to be employed in the organization. Jay knows, Robert is the best manager he has ever had. Moreover, he works hard and understands the business better….
Meltdown at Jet Blue
Meltdown at Jet Blue
Management Issues that caused the Jet Blue problem
Management made the first mistake by looking at the problem too simply, and not thinking about the end result fully. When I say this, I am talking about the planes and the weather, but it could also apply to the IT solutions that Jet Blue had implemented prior. The planes should have been left in the terminal until the weather cleared, instead of loaded with passengers and try to make the flight out….
Throughout human history, there have been and continues to be scandals and cover-ups made by the government and city officials to save their own behinds. Where have all the honest people gone? No matter what the case maybe, money and a good reputation seem to prevail over the cost innocent lives. In 1959, Rocketdyne, a rocket-testing company in the Santa Susana Hills of Simi Valley had a meltdown. Although Rocketdyne representatives deny that the incident caused any type….
ECONOMIC MELTDOWN IN INDIA AND THE US
Perhaps never before in recent history, has any economic development been so talked about as the ongoing ‘economic meltdown’. As it is clear no one person or institution ever understands the world economic network and functioning completely. Naturally, the fault could not be detected until the symptoms proved beyond repair. The sudden collapse of global finance giants like Lehman Brothers, AIG and battering of numerous….
THE GLOBAL ECONOMIC MELTDOWN
Economies of the world all have their periods of rise and fall. No economy can experience total stability over a period of time- there must be some forms of rise or fall in the stability of the economy.
Today, virtually every country in the world is affected by what happens in other countries. Some of these effects are a result of political events, such as the overthrow of one government in favor of another. But a great deal of the interdependence among the nations….
Understanding the crisis involves understanding the past. At the beginning chapter of the book, Mason tells stories of the bankruptcy of Lehmans, and the collapse of AIG. AIG was making about 15 per cent of its profits from insuring financial speculation, and its shares were trading at a spectacular 37 times of its earnings by September 2000. To achieve this, AIG began to insure a large chunk of the high-risk speculation. They also had been faked to fool the auditors and had taken its customer’s….