Thesis (M.B.A.)--Globe University/Minnesota School of Business, 2008. / Includes bibliographical references (leaves v-xxii).

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This thesis deals with the current financial crisis and its solutions. In the first part of this work are analyzed the main causes underlying the emergence of contemporary global crisies. Described are also the methods and financial products through which the crisies spread from the United States of America to the rest of the world, mentioned are main negative impacts of the crisis in the Czech Republic and anti-crisis measures taken by the czech government in context of crisis. In the second part of the work proposed recommendations that could reduce the likelihood of further crises in the future or measures, which could help to solve the current economic crisis. The conclusion summarizes the results of the analysis and answer the question if it is possible to avoid a financial crisis and the resulting economic recession or will come again and again?

The subprime financial crisis revealed some of risks that were not considered as a priority. Among others, a liquidityrisk is now considered as one of the main risks to work with by all institutions. Apart from that, it became obviousthat traditional risk management focused only on what was known and expected, ignoring analysis and testing eventswith low probability but high impact. Lastly, the subprime crisis left a number of lessons in relation to the regulationfor financial markets that must be considered when creating a new regulatory system. / La crisis subprime dejó al descubierto una serie de riesgos financieros que, hasta antes de la crisis, no eran consideradoscomo prioritarios. Entre otros, el riesgo de liquidez se ve ahora como uno de los principales temas a abordar por partede todas las instituciones. Adicionalmente, quedó en evidencia que la administración de riesgos se enfocaba solamenteen lo conocido y esperado, dejando de lado el análisis y evaluación de eventos de baja probabilidad de ocurrencia, peroalto impacto. Por último, la crisis subprime deja ciertas lecciones en torno a la regulación de los mercados financierosque se deben tener en cuenta al momento de redactar nuevos marcos regulatorios.

nÃo hà / O objetivo deste trabalho à apresentar uma interpretaÃÃo da crise financeira norte-americana iniciada em 2007, analisando as estruturas de financiamentos hipotecÃrios e os processos de endividamento das famÃlias americanas, de acordo com o arcabouÃo teÃrico sugerido por Hyman Minsky, utilizando seus estudos da Instabilidade Financeira. Destacamos dois elementos relevantes no processo de crise. O primeiro deles tem a ver com o fato das crises se portarem em ciclos, com inÃcio em uma fase de boom onde o cenÃrio macroeconÃmico à favorÃvel, atà que algum evento exÃgeno altera o cenÃrio e os agentes endividados, tornam-se insolventes. A partir daÃ, em busca de moeda para fazer frente a situaÃÃes de escassez monetÃria, passarÃo a liquidar seus ativos a preÃos cada vez menores e assim entra-se na fase de colapso. O segundo elemento à relacionado à excessiva liberalizaÃÃo financeira, ou seja, um problema da prÃpria estrutura do sistema financeiro que ao possuir um carÃter pouco regulado, especialmente com o advento de inovaÃÃes financeiras, contribuiria para a fragilizaÃÃo de todo o sistema. A monografia procura demonstrar, portanto, que a instabilidade econÃmica ocorrida na crise norte-americana de 2007 tem relaÃÃo com a fragilidade do sistema financeiro, como Minsky evidencia em suas teorias. / The objective of this paper is to present an interpretation of the U.S. financial crisis started in 2007, analyzing the structures and processes mortgages indebtedness of U.S. households, according to the theoretical framework suggested by Hyman Minsky, using his studies Financial Instability . Featuring two important elements in the process of crisis. The first has to do with the fact that crises behave in cycles, beginning in a boom phase where the macroeconomic environment is favorable, until some exogenous event changes the scenario and the agents indebted, become insolvent. From there, in search of money to cope with shortages monetary, will liquidate its assets at ever lower prices and thus enters into the stage of collapse. The second element is related to excessive financial liberalization, ie a problem of the very structure of the financial system that has a character loosely regulated, especially with the advent of financial innovations, would contribute to weakening the whole system. The paper seeks to show, therefore, that the economic instability that occurred in the American crisis of 2007 has to do with the fragility of the financial system, as Minsky shows in their theories.

The main objects of this diploma thesis are basic trends in the mortgage market in the United States and their role in the current mortgage crisis. As a theoretical background in the first part of this work are mentioned asymetric information with the optimal consumer choice regarding mortgage product and the general theory of the securitization. Practical part continues from the description of the main characteristics of the mortgage to the whole mortgage market and the role of government agencies. Following analysis is concerning the significant tendencies in the past years, which dominates in the mortgage market in the USA. The focus is mainly aimed at the growth of alternative mortgage products in connection with strong home price apreciation. Then the position of mortgage brokers and their role in the subprime sector are discusssed. Subprime sector is analysed as well and then the securitization of mortgages as the main trend in the past years is investigated. The development of the current crisis is the object of the last chapter.

This thesis is about causes of the current financial crisis and it has four parts. 1st - description of evolution of the US housing market; 2nd - US mortgage market and the originate-to-distribute model; 3rd - evolution of the crisis and its spread into other markets and countries; 4th - proposals of main changes in the regulation and supervision in order to prevent similar crisis to happen

Over the last decade, the United States had experienced a boom and bust in the subprime mortgage market. The ups and downs of the subprime mortgage market became a primary factor triggering the most severe global economic recession since the Great Depression. The dissertation contributes to the literature by inquiring whether the subprime lending has exacerbated social inequity between subprime neighborhoods and other neighborhoods, through analyzing the subprime mortgage market in the Philadelphia MSA from 2000 through 2010, and focusing on two research questions: (1) the spatial distribution of subprime mortgages across census tracts; (2) the relationship between subprime intensities and housing price variations across zip-code areas. As the dissertation's study area expands from an urban to a MSA, spatial heterogeneity merits attention in this relative huge area. As a result, this dissertation not only employs a global, Ordinary Least Squares (OLS) model, but also a local, Geographically Weighted Regression (GWR) model to examine spatial variations across different neighborhoods. For the first research question, the dissertation finds: (1) a higher concentration of higher-priced mortgage for purchase and refinance in tracts with higher proportion of African-American and Hispanic residents, lower median household incomes, higher-unemployment rates, lower self-employment rates, and higher capitalization rates, after controlling for other variables; (2) the association between higher-priced mortgages and explanatory variables varies across census tracts. Because the dynamics of neighborhood subprime originations are heterogamous, the association between subprime mortgage origination and socioeconomic characteristics may be stronger in some neighborhoods than other neighborhoods. For the second research question, the dissertation finds: (1) subprime mortgage shares have a significant negative association with housing price appreciations during the housing boom period (2001-2006); (2) subprime mortgage shares have a significant positive association with housing price depreciations during the housing bust period (2006-2010); and (3) the association between housing price variations and explanatory variables differs across geographic submarkets within the Philadelphia region. The result confirms that areas where more residents obtained subprime mortgages have suffered more severely than other from the housing market's ups and downs over the last decade. The empirical results can draw broad policy implications. The primary implication is that it is time for the federal government to rethink its homeownership policy. Increased homeownership levels arising from the expansion of subprime mortgages are not sustainable, and subprime lending has exacerbated social inequity between subprime neighborhoods and other neighborhoods. The second implication is that the government needs to enforce the fair lending laws, because the cluster of subprime mortgage origination reflects the unequal opportunities of prime mortgage accessibility across different neighborhoods. The third implication is that the government needs to promote place-based policy making. As the GWR demonstrates, the dynamics of the mortgage market and housing market are uneven across different neighborhoods. Therefore, place-based making can increase the efficiency of public policy. These implications based on the dissertation's empirical results are helpful for designing more efficient, effective, and sustainable housing policies of the United States. / Urban Studies

Thesis advisor: Robert Murphy / Thesis advisor: Hiroshi Nakazato / The majority of scholarship surrounding the late 2000s financial crisis explores the enabling factors that contributed to the subprime bubble and caused it to burst. This study’s purpose is to evaluate systemic risk and the near collapse of the financial sector in 2008. Several factors, including derivatives innovation, the rise of a parallel banking industry, and the securitization boom, heightened systemic fragility. I add to financial contagion literature by constructing a stochastic game theory model of institutional decision-making under the auspices of a severe liquidity shortage. Moreover, I will employ this model to evaluate the government’s regulatory program during the crisis. I find that the government’s ad hoc interventions and non-interventions significantly contributed to the atmosphere of uncertainty and exacerbated the crisis’ ill effects. I go on to evaluate the Dodd-Frank Act in light of those conclusions and suggest an alternate method of financial reform. / Thesis (BA) — Boston College, 2011. / Submitted to: Boston College. College of Arts and Sciences. / Discipline: International Studies Honors Program. / Discipline: International Studies.

<p>Denna litteraturstudie avser reda ut den eventuella kopplingen mellan bonus och dagens finanskris samt undersöka om ett bonusstopp för bankanställda kan minska risken för en framtida finansiell kris. Uppsatsen inleds med en förklaring av bankväsendets särart och vikten av ett statligt skyddsnät. Senare avhandlas relevant bonusteori och moral hazard, därefter en redogörelse för bonusens betydelse i finanskrisen. Vidare utreds bonusprogrammens inverkan i svenska bankers expansion i Baltikum. Vi har kommit fram till att belöningsstrukturen inom finansbranschen har varit felaktigt utformad då dessa belönat kortsiktiga vinster på riskfyllda affärer. Detta har varit en av orsakerna till subprimekrisen. Ett bonusstopp minskar därför risken för liknande finansiella kriser men kan däremot inte helt eliminera risken för finanskriser.</p>