Prior to beginning work on this assignment, read An Assessment of TARP Assistance to Financial Institutions, Federal Reserve as an International Lender of Last Resort during the 2007-2008 Financial Crisis” rel=”noopener”>The Role of the Federal Reserve as an International Lender of Last Resort during the 2007-2008 Financial Crisis, Political Economy of the U.S. Financial Crisis 2007-2009 (Links to an external site.) articles, and the Quantitative Easing Video” rel=”noopener”>Another Quantitative Easing Video (Links to an external site.) video.
For this assignment, you will assume the role of a financial analyst who works at a large U.S. investment bank. You’ve been asked to prepare a report for senior management that highlights how the economy, financial institutions, and financial markets have evolved since the 2007-2009 financial crisis.
- Analyze the health of the economy prior to and during the financial crisis.
- Evaluate the current state of the economy including financial institutions and financial markets.
- Summarize how financial market structure and regulations have changed since the financial crisis. Appraise how these changes have impacted the U.S. economy.
- Evaluate the risks associated with shadow banks, stocks, bonds, derivatives, securitization, rating agencies, subprime mortgages, and over-the-counter trading during the financial crisis.
- Appraise how the various financial intermediaries allocated capital to its most productive uses during and after the financial crisis.
- Assess how the Federal Reserve’s monetary policy mitigated the effects of the crisis on the U.S. economy. Determine if these approaches will continue to be effective in the foreseeable future.
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