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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. Bob Steel was described as now being with what banking institution in Chapter 12?
(a) Wachovia
(b) Wells Fargo
(c) Merrill Lynch
(d) Citigroup

2. Henry Paulson and his staff drafted a three-page bill that asked Congress for authority to spend how much money in Chapter 18?
(a) $300 billion
(b) $1.2 trillion
(c) $2.5 trillion
(d) $700 billion

3. When did Bob Willumstad accept the position of CEO of AIG?
(a) June, 2008
(b) August, 2006
(c) March, 2007
(d) November, 2005

4. Who is described in Chapter 11 as the Co-President at Morgan Stanley and the man who had worked on the government’s bailout of Chrysler nearly three decades earlier?
(a) Robert Scully
(b) Timothy Geithner
(c) Martin Sullivan
(d) Daniel A. Simkowitz

5. Who in Chapter 17 was the President of the European Central Bank that had been furious with the decision to “let Lehman fail”?
(a) Jim Bunning
(b) Jean-Claude Trichet
(c) Anthony Ryan
(d) Cornelius Vander Starr

Short Answer Questions

1. What is the common name for the Federal Home Loan Mortgage Corporation?

2. What is the address of the New York Federal Reserve Building?

3. Senator Jim Bunning, who had sparred with Paulson over the summer, had gone so far as to call Hank Paulson what, according to the author in Chapter 12?

4. Who complained to Henry Paulson that short sellers were spreading false rumors to drive the panic after the government’s intervention with AIG in Chapter 17?

5. According to the author in Chapter 15, what banking institution was still interested in the broker-dealer part of Lehman, and everyone thought a deal was all but completed until they heard news otherwise?

Short Essay Questions

1. What were the conclusions that were found by the CEOs in Chapter 16? How did they report this news to Geithner?

2. What did Henry Paulson respond when solicited for help from Bob Diamond and Ken Lewis in Chapter 13?

3. What did Henry Paulson decide to do when Fannie Mae and Freddie Mac continued to deteriorate in Chapter 11?

4. What was discussed in the meeting between Dick Fuld and Timothy Geithner in Chapter 10?

5. What did Dick Fuld learn about the outcome of the governmental/CEO meeting in Chapter 15?

6. What were the principle causes for Dick Fuld’s increasing stress in the beginning of Chapter 12?

7. With whom were Lehman Brothers in negotiations with in Chapter 11? Who led the negotiations?

8. What plan was announced by Henry Paulson and drafted into a bill in Chapter 18?

9. How did Greg Fleming respond when he heard that Bank of America was considering buying Lehman Brothers in Chapter 13?

10. What led to the cease of negotiations between Lehman and its potential investor in Chapter 11?

(see the answer keys)

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