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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. Who asked Howie Hubler for money owed Deutsche Bank on the CDOs purchased from Hubler in Chapter 9?
(a) Bernie Madoff.
(b) Greg Lippmann.
(c) John Mack.
(d) James Wilson.

2. Reluctant to lose out on what Michael Burry was convinced would be a profitable investment, what did he do with his CDSs to keep his investors from taking their money back in Chapter 8?
(a) Sold them.
(b) Released them.
(c) Side pocketed them.
(d) Bought them.

3. What is the title of Chapter 9?
(a) Two Men in a Boat.
(b) Bottom of the Bag.
(c) A Death of Interest.
(d) The End of Wall Street.

4. How much did Morgan Stanley settle with Deutsche Bank on the CDOs purchased from Hubler in Chapter 9?
(a) $600 million.
(b) $450 milllion.
(c) $750 million.
(d) $350 million.

5. Howie Hubler decided to find a way to bet against mortgage bonds and in doing so began forming what, which he sold to what he thought were ignorant investors?
(a) CEOs.
(b) CDSs.
(c) CFSs.
(d) CDOs.

Short Answer Questions

1. Morgan Stanley lost more than how much on Hubler's CDO deals, as described in Chapter 9?

2. What did "NASDAQ" originally stand for?

3. In Chapter 9 the author writes that it became apparent that no one at Morgan Stanley fully understood the CDO deals, including who?

4. What is the title of the book's Epilogue?

5. At the conference in Chapter 6, Charlie Ledley found himself being courted by what company and chiefly ignored by most of the other conference attendees?

Short Essay Questions

1. What impact did the conference have on Cornwall Capital Management in Chapter 7?

2. What eventually led to Morgan Stanley questioning the actions of Howie Hubler?

3. What would have caused most of the Wall Street banks to fail, according to the author in Chapter 10?

4. Who courted Charlie Ledley at the conference in Chapter 6? What was Ledley's objective at the conference?

5. How much did Mike Burry make from his CDSs in Chapter 9? What was his outcome?

6. What actions from the 1980s does the author describe as leading up to the mortgage crisis in the Epilogue?

7. How many CDOs did Cornwall Capital Management acquire after the conference in Chapter 7?

8. What information did Steve Eisman discover about the rating companies in Chapter 7?

9. Who does the author describe meeting for lunch in the Epilogue?

10. What is a CDS?

(see the answer keys)

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