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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. Bart McDade and Skip McGee from Lehman Brothers met with whom from KDB to hammer out a deal in Chapter 11?

2. Henry Paulson and his staff drafted a three-page bill that asked Congress for authority to spend how much money in Chapter 18?

3. 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?

4. According to the author in Chapter 14, after the meeting at the New York Federal Reserve Building, “the Morgan Stanley bankers had two related tasks: self-preservation and” what?

5. Who was described as the Managing Director of Westwood Capital LLC in Chapter 11?

Short Essay Questions

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

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

3. How was the meeting between Dick Fuld and John Mack described in Chapter 10?

4. What was the purpose of the meeting that Tim Geithner called in Chapter 16? Who was called to this meeting?

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

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

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

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

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

10. What was Dick Fuld’s last resort option that he discussed with Henry Paulson in Chapter 10?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Define and discuss “sub-prime mortgages” and their employment as backing for securities in the stock exchange. When did this action begin on Wall Street? What regulations and/or laws allowed the exchange of sub-prime mortgages and what were the effects of their exchange?

Essay Topic 2

Describe and discuss Susanne Craig’s article from the Wall Street Journal on June 4, 2008. What implications do you see in the article? Why did its publication enrage Dick Fuld? How did the article influence the future of Lehman Brothers’ stockholdings?

Essay Topic 3

Discuss Lehman Brothers’ portfolio and assets in 2008 and analyze the downfall of Lehman Brothers and their problems on the books prior to their file for bankruptcy. How did sub-prime mortgage trading influence the problems that Lehman faced in 2008?

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This section contains 938 words (approx. 4 pages at 300 words per page) View a FREE sample