Vocab 1
Sub-prime loans received this type of credit rating despite being bad loans.
What is AAA?
An influx of people going to the bank at the same time requesting to withdraw their money, at a time when the bank is unable to meet the demand due to too many loans not being paid.
What is a bank Run?
The narrator of the movie.
Who is Matt Damon?
In 2001, the "Internet Bubble" burst, causing $5 trillion in losses. What did the SEC do?
What is nothing?
Agency that collect taxes and enforces tax laws.
What is the IRS?
A business that is owned by one person, has personal and tax liability.
What is a sole proprietorship?
Predatory Lending Practice is:
What is adjustable interest that leads to insanely high mortgage payments?.
The final line of the movie was, "Some things are worth ______ for."
What is fighting?
What major bank's collapse triggered the 2008 world financial crisis?
What is Lehman Brothers?
Government agency that regulates securities.
What is the SEC?
A business owned by 2 or more people, with personal liability and taxes.
What is a partnership?
Agency that guides how to record financial economic events.
What is the FASB? (Financial Accounting Standards Board)
The number of presidents who appointed Alan Greenspan as Chief of the Federal Reserve.
What is 3?
The Attorney General of NY in 2008 who went after banks for the losses they caused. He became Governor of NY in 2007 and was forced to resignin disgrace in 2008.
Who is Eliot Spitzer?
These two agencies played a significant role in the financial crisis but ultimately played to congresses favor. These are two government sponsored entities that are tasked to help implement US Housing policy.
Fannie Mae and Freddie Mac (The Federal National Mortgage Association agencies).
A business that is separate from other businesses or people, taxed apart, no personal liability.
What is a corporation?
Agency that issues guidelines that are used internationally in finance.
What is the IFRS? (International Finance Reporting Standards)
The #1 Sub-Prime lender in 2008?
What was Countrywide?
What is $700 billion?
Government sponsored pension fund for aged and unemployed; public assistance for mothers, children and disabled; financed by a payroll tax of US workers.
What is Social Security Act of 1935?
Business type that combines limited personal liability with tax benefits.
What is a LLC?
Agency that issues the guidelines that accountants use consistently.
What is GAAP? (Generally A ccepted Accounting Principles).
The Act passed that allowed bans to engage in trading profitable derivatives that were sold to investors. These mortgage-backed securities needed home loans as collateral.
What is Gramm-Rudman Act?
The 2008 crisis increased the US debt by this amount.
What is double?
Hank Paulson, CEO and Chairman of the board of Goldman Sachs left the bank just before the Financial Crisis blew up to take what Government position.
What is US Treasury Secretary?