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

2. With all eyes on Lehman after the Bear collapse, Hank Paulson suggested to Dick Fuld that it would be a good idea for Lehman to increase its holdings of what to shore up confidence in the bank?
(a) Platinum
(b) Gold
(c) Silver
(d) Cash

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

4. 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) Berkshire Hathaway
(c) Merrill Lynch
(d) Lehman Brothers

5. According to the author in Chapter 5, David Einhorn was a hedge manager controlling over how much money in assets?
(a) $12 billion
(b) $3 billion
(c) $6 billion
(d) $10 billion

Short Answer Questions

1. What was the name of Lehman Brothers’ bomb-sniffing Labrador described in Chapter 5?

2. By what name is the regulation that “had been introduced by the Securities and Exchange Commission in 1938 to prevent investors from continually shorting a stock that was falling” called?

3. What word from Chapter 5 derives from German and describes an all-motorized force concentration of tanks, infantry, artillery, combat engineers and air power?

4. Who was the founder of the company that would become AIG?

5. Where does the author say Gerald Domini lived in Chapter 5?

Short Essay Questions

1. What was the impact of David Einhorn’s speech regarding Lehman Brothers’ assets in Chapter 5?

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

3. How was Lehman Brothers impacted by the news of Bear Stearns’ collapse, according to the author in Chapter 1? What actions did the company take?

4. How does the author describe Bob Steel in Chapter 3? Why was Bob Steel in a tough position?

5. What was John Thain’s plan for turning around Merrill Lynch after his acceptance of the role as CEO in Chapter 7?

6. How did Henry Paulson come about encountering the Goldman Sachs executives in Chapter 9?

7. What was the result of spreading sub-prime mortgages across the spectrum of the investment world, according to the author in the Prologue?

8. What was the secret plan that Hank Paulson developed for how to deal with the situation if Lehman Brothers or several banks should begin to fail in Chapter 4?

9. What did Jamie Dimon inform his executive staff after attending the meeting described in the Prologue?

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

(see the answer keys)

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