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Summary: The 2008 Financial Crisis

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Summary: The 2008 Financial Crisis
Victoria Ivashina and David Scharfstein (2010) point out that the financial crisis of 2008 affects economy by the decline in new loans in bank area and there are two stresses on bank liquidity led banks to cut lending which are commercial and industrial loans stresses. The data for the writers’ investigation are from Reuters’ DealScan database instead of C＆I - which means commercial and industrial – loans announced by Federal Reserve Board (FRB). The reason maybe that DealScan mainly contains syndicated loans, but the FRB data contain non-syndicated loans as well. Moreover, ignoring the terminal keeper of loans, DealScan notes total loan issuance. However, the FRB date report C＆I loans only. After stating some facts and examining the data from
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