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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. Who was Dick Fuld’s mentor at the global financial services firm where he began working and later led the company for much of his career?
(a) Jeb Mason
(b) Greg Curl
(c) John Mack
(d) Lewis Glucksman

2. Warren Buffett is the primary shareholder, chairman and CEO of what American multinational conglomerate holding company?
(a) Wells Fargo
(b) Westwood Capital LLC
(c) BlackRock
(d) Berkshire Hathaway

3. Gerald Donini asserts when speaking with Jim Cramer in Chapter 5 that he felt the real problem in the marketplace wasn’t short-selling, but what?
(a) Naked-shorting
(b) Derivatives
(c) Subprime lending
(d) Stocks

4. Hank Paulson and his staff prepared a secret plan for how to deal with the situation should Lehman or another large firm go bankrupt, or if several banks should begin to fail at once. Who did they present their plan to in a meeting described by Sorkin in Chapter 4?
(a) Ben Bernanke
(b) Michael Bloomberg
(c) Jim Cramer
(d) Daniel A. Simkowitz

5. Timothy Geithner was the President of the Federal Reserve Bank of New York during what years?
(a) 2001-2010
(b) 2003-2009
(c) 1999-2002
(d) 2002-2005

6. According to the author in Chapter 1, Henry Paulson called and informed Dick Fuld that Bear Stearns collapsed and would be bought by what investment company?
(a) JP Morgan
(b) Merrill Lynch
(c) Citigroup
(d) Goldman Sachs

7. Who was the founder of the company that would become AIG?
(a) Michael Bloomberg
(b) Jamie Dimon
(c) Warren Buffett
(d) Cornelius Vander Starr

8. When did FAS 157 become effective?
(a) June 28, 2005
(b) August 1, 2004
(c) November 15, 2007
(d) May 9, 2006

9. Bob Willumstad had been asked by the board of AIG to replace whom as CEO in Chapter 8?
(a) Martin Sullivan
(b) David Einhorn
(c) Tony Ryan
(d) Eddie Lampert

10. According to the author in Chapter 1, Henry Paulson called and informed Dick Fuld that Bear Stearns collapsed and that the U.S. Treasury had taken the step of backing how much in Bear Stearns assets to restore confidence in the market?
(a) $2 billion
(b) $15 billion
(c) $8 billion
(d) $30 billion

11. What word in finance refers to the act of making loans to people who may have difficulty maintaining the repayment schedule?
(a) Short-selling
(b) Subprime lending
(c) Derivative lending
(d) Naked short-selling

12. In 2008, AIG had grown into one of the world’s largest financial companies, with more than how much worth of assets on its books?
(a) $450 billion
(b) $300 billion
(c) $1 trillion
(d) $800 billion

13. Dick Fuld had been pressing what old friend and former Chairman of AIG to put money into Lehman Brothers in Chapter 6?
(a) Frank Zarb
(b) Charlie Scharf
(c) Hank Greenberg
(d) Brian Moynihan

14. What was the name of Lehman Brothers’ bomb-sniffing Labrador described in Chapter 5?
(a) Bella
(b) Sassy
(c) Tenaya
(d) Ducky

15. Who did John Thain replace in his position as CEO in 2007, as described by the author in Chapter 7?
(a) Stan O’Neal
(b) David Viniar
(c) Jim Cramer
(d) Bob Willumstad

Short Answer Questions

1. What was the largest and most prestigious investment bank in the nation that Jamie Dimon advised his staff could possibly file bankruptcy in the Prologue?

2. Who is described as Lehman Brothers’ spokesperson in Chapter 6?

3. With what country had Dick Fuld been working for a month to secure capital for Lehman in Chapter 6?

4. Bob Steel called which old friend at Barclays Bank in London to ask if Barclays might be interested in purchasing Lehman in Chapter 4?

5. What were the quarterly losses that were announced at Lehman Brothers on June 9, 2008?

(see the answer keys)

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