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

Multiple Choice Questions

1. On the heels of David Einhorn’s campaign against Lehman Brothers, Lehman’s stock had fallen how much since Einhorn’s speech in May, according to the author in Chapter 6?
(a) 37.2%
(b) 22.6%
(c) 31.0%
(d) 12.5%

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

3. Where was the hedge fund Peloton based?
(a) New York
(b) London
(c) Chicago
(d) Paris

4. What was the title of the article from the Wall Street Journal that Dick Fuld called “the worst betrayal of my career” in Chapter 6?
(a) Lehman Ends $38 Billion Standoff
(b) Lehman Files for Bankruptcy, Merrill Sold, AIG Seeks Cash
(c) Lehman Brothers Holdings to Consider Monetization of Claims Vs. Holding Company
(d) Lehman Is Seeking Oversees Capital

5. On what date does the author describe Dick Fuld holding a copy of the Wall Street Journal with an article on page C1 that was deemed by him “the worst betrayal of my career” in Chapter 6?
(a) January 25, 2008
(b) July 8, 2007
(c) June 4, 2008
(d) February 17, 2007

6. How old was David Einhorn described as being when he prepared for a speech at the Ira W. Sohn Investment Research Conference in Chapter 5?
(a) 42
(b) 51
(c) 39
(d) 33

7. On what morning does the author describe Jamie Dimon awakening after an emergency meeting at the Federal Reserve Bank of New York with a dozen of his rival Wall Street CEOs in the beginning of the Prologue?
(a) April 19, 2007
(b) January 5, 2010
(c) June 2, 2009
(d) September 13, 2008

8. Who was the Chief Financial Officer of Lehman Brothers that presented the earnings report for the first quarter of 2008?
(a) Skip McGee
(b) Barry Zubrow
(c) Erin Callan
(d) David Einhorn

9. John Thain was described as the CEO of which investment banking and wealth management firm in Chapter 7?
(a) Lehman Brothers
(b) Berkshire Hathaway
(c) Greenlight Capital
(d) Merrill Lynch

10. What title did Hank Paulson hold in 2008?
(a) United States Secretary of Education
(b) United States Secretary of the Interior
(c) United States Secretary of State
(d) United States Secretary of the Treasury

11. How much was oil going for per barrel according to the author in Chapter 9?
(a) $163
(b) $98
(c) $85.
(d) $140

12. 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) $15 billion
(b) $8 billion
(c) $30 billion
(d) $2 billion

13. Jamie Dimon told Hank Paulson that JP Morgan had upped its offer from $2 per share to what in Chapter 2?
(a) $16 per share
(b) $10 per share
(c) $9 per share
(d) $4 per share

14. Who did Scott Friedheim believe to be responsible for the leak to the Wall Street Journal in Chapter 6?
(a) Kerrie Cohen
(b) Sheila Bair
(c) Erin Callan
(d) Margaret Law

15. The assignment of Jamie Dimon and a dozen of his rival CEOs at the emergency meeting at the Federal Reserve Bank of New York was to come up with a plan to save what company, according to the author in the Prologue?
(a) JP Morgan
(b) Lehman Brothers
(c) Berkshire Hathaway
(d) Merrill Lynch

Short Answer Questions

1. According to the author in Chapter 5, Dick Fuld “said that he had become convinced that two of the nation’s most powerful financiers were largely responsible for both the short raid and rumor mongering.” Who were these financiers?

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

3. Who did Bob Willumstad refer to as the former Chairman at AIG that thought Willumstad’s position was all or nothing in Chapter 8?

4. According to the author in Chapter 3, Bob Steel knew he would face scrutiny from which U.S. senator who opposed government intervention in the markets?

5. John Thain went to Michael Bloomberg and proposed that Bloomberg buy back what percent of his company from the bank in Chapter 7?

(see the answer keys)

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