The Subprime Crisis in 2008

By Warren08/15/2015

GreedMoney Subprime Crisis

1. What is “the Subprime Crisis”2. Impact of the Subprime Crisis3. How the Subprime Crisis Happened

The Subprime Crisis in 2008

$ 59, 700, 000, 000, 000$ 15, 000, 000, 000, 000

What is the Subprime Crisis?

25% of World GDP

• Started in 2008• Mortgage industry in the U.S.• Borrowers approved for mortgages • Borrowers could not afford mortgages

What is the Subprime Crisis?

• Before 2008– 10 banks failure

• After 2008– 465 banks failure

The Impact of the Subprime Crisis

• Washington Mutual Bank with Asset of $307 Billions– Acquired by JP Morgan Chase– The largest bank failure

• Lehman Brothers with Asset of $600 Billions – The fourth largest investment bank– The largest Filing for bankruptcy

How the Subprime Crisis Happened?

• Richard Fuld • Best known as the final Chairman and CEO of Lehman Brothers• Since the firm's 1994 spinoff from American Express until 2008

• A global financial services firm headquartered in New York City

• The fourth-largest investment bank• Declared bankruptcy in 2008• The biggest bankruptcy filing in U.S. history

How the Subprime Crisis Happened?

Mortgage

• Brokers• Banks

Bond• Investment Banks• Financial Institutions

Bomb• U.S. Investors• Global Investors

House• House buyers• Individuals with bad credits

What CEO stands for in the Subprime Crisis

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