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Group: Allen Chen Dan Chen Robin Thieu Wendy Chen
Created by Robin Thieu, 2008 Fall
What caused the financial industry crisis? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source : Jack , Suzy Welch (2008, September 25).  BusinessWeek
The Debt Trap Source : The New York Times
Financial Ratio Created by Robin Thieu, 2008 Fall
Created by Robin Thieu, 2008 Fall House Income Mortgage Lenders (Countrywide, Indy Mac, Fannie & Freddie) Banks ( Citibank, BOA) SPV Investors ( Banks, Funds, Insurance) Investment Banks (Bear Stearns, Lehman, Merrill Lynch) CDOs MBSs Mortgage Subprime Insurers ( AIG) Rating Credit Crunch
Macroeconomic Analysis Created by Robin Thieu, 2008 Fall
GDP and housing market  Source : The Federal Reserve
Mortgage Rates Source : Federal Home Loan Mortgage Corporation's (Freddie Mac)
Home Price Indices Source : Standard & Poor’s
Total Subprime Mortgage Originations Growth
Homeowners Equity vs. Mortgage  Source : The Federal Reserve
Unemployment Rate Source : State of the USA and BBC
US Homeownership Rate Source : State of the USA
Macroeconomic Analysis ,[object Object],[object Object],[object Object],[object Object]
Macroeconomic Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object]
Mortgage Lenders & Banks Created by Robin Thieu, 2008 Fall
Making MBS Source: The website of  the Wall Street Journal  ,  http://online.wsj.com/public/resources/documents/info-flash07.html?project=normaSubprime0712&h=530&w=980&hasAd=1&settings=normaSubprime0712
Making MBS Source: The website of  the Wall Street Journal  ,  http://online.wsj.com/public/resources/documents/info-flash07.html?project=normaSubprime0712&h=530&w=980&hasAd=1&settings=normaSubprime0712
Making MBS Source: The website of  the Wall Street Journal  ,  http://online.wsj.com/public/resources/documents/info-flash07.html?project=normaSubprime0712&h=530&w=980&hasAd=1&settings=normaSubprime0712
Fannie Mae Source : Analyticalwealth.com
Mortgage Default Source : The New York Times
Stock price of FNM Source : Thomson Financial
FNM’ net losses in holding MBS
Citigroup ,[object Object],[object Object]
Where AIG went wrong ,[object Object],[object Object],[object Object],[object Object]
Investment Banks ,[object Object],[object Object],[object Object],[object Object]
Investment Banks Created by Robin Thieu, 2008 Fall
Investment Banks ,[object Object],Source: The website of  the Wall Street Journal  ,  http://online.wsj.com/public/resources/documents/info-flash07.html?project=normaSubprime0712&h=530&w=980&hasAd=1&settings=normaSubprime0712
Investment Banks ,[object Object],Source: The website of  the Wall Street Journal  ,  http://online.wsj.com/public/resources/documents/info-flash07.html?project=normaSubprime0712&h=530&w=980&hasAd=1&settings=normaSubprime0712
Investment Banks ,[object Object],Source: The website of  the Wall Street Journal  ,  http://online.wsj.com/public/resources/documents/info-flash07.html?project=normaSubprime0712&h=530&w=980&hasAd=1&settings=normaSubprime0712
Investment Banks Source: The website of  the Wall Street Journal  ,  http://online.wsj.com/public/resources/documents/info-flash07.html?project=normaSubprime0712&h=530&w=980&hasAd=1&settings=normaSubprime0712 ,[object Object]
Investment Banks ,[object Object],[object Object],[object Object],[object Object],[object Object]
Investment Banks ,[object Object],[object Object],[object Object],[object Object]
Credit  Crunch ,[object Object],[object Object],“ If companies around the globe are unable to borrow, they'll begin to cut jobs, cease investment, and default on their debt in larger numbers. “ Peter Coy BW, Oct 3, 2008 Created by Robin Thieu, 2008 Fall
Credit Manipulation Created by Robin Thieu, 2008 Fall
[object Object],PQ + CQ > IQ

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Notas del editor

  1. Good evening everyone, today our group would like to share some of our studies and opinions about the subprime mortgage crisis. We are Allen, Dandan, me, and Wendy. Before getting start, I would like to thank professor gave us a chance to learn and understand this one-in-lifetime crisis. And I would love to honor all of my teammates who have been working hard and sacrificing their leisure time for today final presentation.