The Big Short Movie Analysis

The mortgage banking business enabled Todd to create connection with First Magnus Corporation-the largest privately owned mortgage companies in the United States. He later increased his access to capital and expand his operations by opening a charter funding in year 2003- a First Magnus subsidiary. Todd Lubar was familiar in his niche market having worked with more than 7,000 clients who had tried to acquire finance from other traditional means but had failed. Through his confidence, understanding and the overall knowledge to analyze risks, he found the need to develop Legendary Financial that was meant to fill that gap.

It would seem the government did not fail to prosecute the executives responsible for the mortgage fiasco. “The Justice Department has an ethical obligation not to bring cases unless they have a better than 50% chance to convict. They argued the merits of each case and always came up short of the evidence necessary for a successful conviction. Greed is not a crime.” (Henning, 2015) The Assistant attorney general Lanny Breuer was not confident in his ability to prove criminal intent and therefore has not filed charges.

However, the recession of 2007 was affected largely by the house bubble collapsing. The financial industries had designed complex ways for people to receive lends. There was a larger risk later that neither the investors of firms

During the Great Depression new organizations formed from the National Housing Act of 1934. Organizations like HOLC and FHA (Federal Housing Administration) were placed to assist homeowners unable to pay their existing mortgages and boost the overall housing market. Residential Security Maps were created by HOLC and the practice of redlining was implemented by FHA to categorize mortgages and loans according to desirability for investment and promote a ‘systematic place-based appraisal

Although there are many aspects to the Great Depression, this essay will focus on five important points. First, an in depth look at the cause of the Great Depression will be examined. Then, how it affected the American people will be discussed. Next, an observation of how President Roosevelt’s administration worked to fix the Great Depression will be addressed. Also, the effectiveness of the programs put in place by the government will be presented.

Kyle Eakin From British taxes contributing to the Revolutionary War to the housing collapse in 2008, every major event in the United States can be tied to money in some way. Money has been a catalyst of change over our history with both positive and negative results with the Department of the Treasury naturally being a central factor. The currencies that predate the dollar helped to create the United States as they funded our fight for freedom in multiple wars. The US dollar, a currency created less than 250 years ago, has shaped the United States history and amazingly become the most polarizing and well-known currency in the world economy. Beginning in 1690 each colony had its own currency which led to many issues of exchange and the value of each currency.

The 2008 recession was a major worldwide economic downturn that began in 2008 in America and continued into 2010 and beyond. The 2008 Recession was caused by the Financial Crisis of 2008; The 2008 crisis was due to a collapse of Lehman Brothers. Lehman Brothers a sprawling global bank, in September 2008 almost brought down the world’s financial system. The 2008 recession was by far the worst recession since the Great Depression of the 1930s. The worldwide recession hit bottom in December 2009; however after five years there were few signs that the American economy started moving upward again.

This was not all the FHA’s fault however. A lot of the blame can be pushed towards the investors themselves. The FHA did not make the loans, they only insured them. The FHA said “finding buyers for those mortgages proved difficult”. (Hyman 142)

Prior to mid 2007, regional banks securitised around one-third of their housing loans while the major banks securitised less than 10 per cent. As a result, despite their smaller size, the regional banks accounted for roughly 40 per cent of Residential mortgage-backed securities issuance whereas the major banks accounted for 20 per cent (Debelle, 18 November 2009, pp.44). The financial crisis had a negative impact on securitisation leading it to the residential mortgage-backed securities to have credit problems, which made the credit market more cautious. Because of the crisis, there was enormous loss incurred by US and euro area banks from their holdings of mortgage-backed securities.

In order to fix the banking crisis and help many families, the Federal Depositors Insurance Corporation examined

Freddie Mac and Fannie Mae played a major role in creating a secondary market for mortgages by providing liquidity to the market, thereby increasing demand for mortgages. Freddie Mac and Fannie Mae had GSE statuses, which enabled them to take more risk relative to other financial organizations/institutions. That being said, they were able to purchase various mortgages from different financial institutions, package them into mortgage backed securities, and sell them to investors on Wall Street without an explicit guarantee on the mortgage values. On the other hand, Ginnie Mae, a fully government-owned institution, fully guaranteed repayments of mortgage backed securities.

The Unrated was bought by the hedge funds. The investment banks generate huge profit and repay debt to central banks. The risk of the investments are carried by groups of investors who bought the Credit default swap. This is done on the basis that house value will always go up. The risky loans created lots of insolvent

Executive Summary Lehman Brothers were an investment bank involved in transactions worth billions of dollars and one of the most powerful investment banks in the world. Lehman Brothers collapsed in 2008 following bad investment in the sub-prime mortgage market and used bad accounting practices called Repo 105 transactions to try and cover up the bad assets. This report sets out the use of the fraud triangle when describing the actions which led to the collapse. The pressure applied on the bank, the opportunity due to the lack of regulation to carry out the actions and the ability of the bank to rationalise their decision making.

Introduction- The leadership and management are two important pillars of modern day business. “You manage things; you lead people” Grace Hopper (retired Admiral, U.S. Navy). On one hand managers, not only motivate people but they also set the course of direction and organize to achieve the targets.

Leadership: Definition Leadership is the process of influencing the motive of the employees and so directing, guiding them to the proper completion of the short-term goals and the mission, vision of the firm. Leadership referring to achieve a specific set of goals of the business enterprise by minimizing risk and more advantage of opportunities is also called Entrepreneurial Leadership (Rao, 2015). Today leadership is such an iterative process when the leaders should have a variety of qualities and expertise in different area of management. Here, different theories will be explained which can clearly identify the scope, the responsibilities and the area of expertise required to be successful leader.