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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 was the Chief of Staff at Goldman Sachs in Chapter 9?
(a) Martin Sullivan
(b) Jon Corzine
(c) John F. Rogers
(d) Gerald Donini

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

3. In 2008, AIG had grown into one of the world’s largest financial companies, with a market value of just under how much?
(a) $50 billion
(b) $80 billion
(c) $35 billon
(d) $125 billion

4. 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) Subprime lending
(b) Naked-shorting
(c) Derivatives
(d) Stocks

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

Short Answer Questions

1. John Thain is described in Chapter 7 as having worked for Henry Paulson at Goldman Sachs and then as CEO of what company?

2. Who was the Chief Financial Officer of Lehman Brothers that presented the earnings report for the first quarter of 2008?

3. Who was the head of communications at Lehman Brothers in Chapter 6?

4. John Thain was described as the CEO of which investment banking and wealth management firm in Chapter 7?

5. What was Dick Fuld nicknamed on Wall Street for his competitive nature?

Short Essay Questions

1. How was Hank Paulson’s rise to the post of Treasury Secretary described in Chapter 2?

2. To whom did John Thain turn for help with Merrill Lynch’s situation in Chapter 7? What response did he receive?

3. What information about Lehman Brothers had been leaked to the Wall Street Journal in Chapter 6? Who was suspected of the leak?

4. What advice did Skip McGee give to Dick Fuld in Chapter 6? How did Fuld respond?

5. Why did Dick Fuld meet with other Lehman executives and Jim Cramer in Chapter 5? How did this meeting turn out?

6. What was Hank Paulson’s first concern regarding the possibility of failure of Lehman Brothers, according to the author in Chapter 4?

7. For what reason was Hank Paulson angry when he heard about the JP Morgan and Bear Stearns deal in Chapter 2?

8. What meeting does the author describe Jamie Dimon attending in the Prologue of Too Big to Fail?

9. How does the author describe David Einhorn in Chapter 5?

10. Who did Bob Willumstad replace as CEO of AIG? How does the author describe Hank Greenberg’s thoughts on this transition in Chapter 8?

(see the answer keys)

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