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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 described in Chapter 17 as “a thirty-eight-year-old governor at the Federal Reserve, whose office was a few doors down from Bernanke’s”?
(a) Brian Moynihan
(b) Jeb Mason
(c) Kevin Warsh
(d) Rick Waddell

2. Greg Curl informed Hank Paulson that Bank of America would agree to the deal regarding Lehman Brothers only if the government was willing to take how much of losses on Lehman’s assets in Chapter 14?
(a) $10 billion
(b) $20 billion
(c) $40 billion
(d) $30 billion

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

4. What is the common name for the Federal National Mortgage Association?
(a) Reserve Primary Fund
(b) Ameriprise
(c) Wachovia
(d) Fannie Mae

5. Who was the head of JP Morgan’s Consumer Business department, according to the author in Chapter 12?
(a) Charlie Scharf
(b) Hank Greenberg
(c) David Einhorn
(d) Scott Friedheim

Short Answer Questions

1. Regarding the problems at AIG, the plan that was finally put in place was for the government to take over 80% of AIG in exchange for a loan of how much?

2. Larry Fink was described in Chapter12 as being from what financial institution?

3. Henry Paulson cut his meeting short with the bankers in Chapter 11 because he was going with his family to attend the Olympic Games where?

4. Where is Wells Fargo bank headquartered?

5. Freddie Mac had a reported loss of how much in the morning when Henry Paulson met with the top bankers at the Treasury building in Chapter 11?

Short Essay Questions

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

2. What events does the author describe taking place on September 10, 2008, in the opening of Chapter 13?

3. What negotiations took place in the scramble to save Lehman Brothers in Chapter 12?

4. How much capital was AIG able to raise in Chapter 14? How much were they short?

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

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

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

8. What did Ben Bernanke and Henry Paulson present to Congress as their solution to the banking problems in Chapter 17?

9. What did JP Morgan plan in order to deal with the Lehman Brothers’ problem in Chapter 12?

10. On what date does the author open Chapter 19? What had happened to the stocks of Goldman Sachs and Morgan Stanley on this date?

(see the answer keys)

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