|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. Jim Massey is considered Gutfreund's _____.
2. One of the major incentives that legislators create to encourage the borrowing of money is the _____ of mortgage payments.
3. Lewie Ranieri is doing what when he is called in by Gutfreund to take over the mortgage department?
4. What is another word for savings and loan?
5. In any market, as in any poker game, there is a ______.
Short Essay Questions
1. How does the author compare economics to art history?
2. What is unfortunate about the position Susan James has acquired at Salomon Brothers?
3. How does Bob Dall react when he is replaced by Ranieri?
4. How does the code of Liar's Poker affect a trader?
5. How does the equities department treat the trainees?
6. Why does the author pounce on the opportunity to work for Salomon Brothers like a loose ball?
7. What happens when the author has breakfast with Leo Corbett?
8. How does Meriwether beat Gutfreund before the game of Liar's Poker even starts?
9. Why is a single home mortgage considered a messy investment for Wall Street?
10. What is meant by "no tears"?
Write an essay for ONE of the following topics:
Essay Topic 1
How does the Glass-Steagall Act of 1934 cleave the banking industry in two? What two sectors of banking are created as a result of the act? What functions do these two sectors serve? How are the two sectors of banking perceived by the author?
Essay Topic 2
Describe the evolution of the mortgage trading department at Salomon Brothers. Who came up with the idea to develop that department? Who saw it through the hard times? What were some of the stumbling blocks that had to be overcome to make mortgages viable for trading? How does it finally become successful?
Essay Topic 3
What contributes to the rapid and complete deterioration of Ranieri and Co. at Salomon Brothers? What was the achievement that Ranieri had hoped for in creating the mortgage department? How did the market affect the imbalance between Ranieri and Co. and the rest of the bond trading world?
This section contains 854 words
(approx. 3 pages at 300 words per page)