3. 1. What is “the Subprime Crisis”
2. Impact of the Subprime Crisis
3. How the Subprime Crisis Happened
The Subprime Crisis in 2008
4. $ 59, 700, 000, 000, 000
$ 15, 000, 000, 000, 000
What is the Subprime Crisis?
25% of World GDP
5. • Started in 2008
• Mortgage industry in the U.S.
• Borrowers approved for mortgages
• Borrowers could not afford mortgages
What is the Subprime Crisis?
6. • Before 2008
– 10 banks failure
• After 2008
– 465 banks failure
The Impact of the Subprime Crisis
• Washington Mutual Bank with Asset of $307 Billions
– Acquired by JP Morgan Chase
– The largest bank failure
• Lehman Brothers with Asset of $600 Billions
– The fourth largest investment bank
– The largest Filing for bankruptcy
7. How the Subprime Crisis Happened?
• Richard Fuld
• Best known as the final Chairman and CEO of Lehman Brothers
• Since the firm's 1994 spinoff from American Express until 2008
• A global financial services firm headquartered
in New York City
• The fourth-largest investment bank
• Declared bankruptcy in 2008
• The biggest bankruptcy filing in U.S. history
8. How the Subprime Crisis Happened?
Mortgage
• Brokers
• Banks
Bond
• Investment Banks
• Financial Institutions
Bomb
• U.S. Investors
• Global Investors
House
• House buyers
• Individuals with bad credits