Chapter 13 - 16 Discussion Questions

TBTF: Chapters 13 – 16

Instructions:

Too Big to Fail

Chapter 13 - 16 Discussion Questions

1) In Chapter 13 what is the political will bank bailout after Bear? What two banks are at least considering a deal with Lehman and where are they based? Who are their CEOs? How are their negotiation tactics different?

2) What other bank may also need to be rescued? What insurer may need to be rescued?

3) What is the SpinCo plan? What is David Einhorn's analysis of the SpinCo deal proposed on the Lehman conference call?

4) What board is Dick Fuld forced to resign from and why?

5) In Chapter 14 we see a meeting of "the families", which banks are part of this meeting at the NY Fed? Which banks are left out? Tim Geithner charges the banks to form three working groups at the meeting, what situations are they tasked to analyze?

6) At the end of Chapter 14 who is interested in Lehman, Merrill Lynch, and AIG?

7) In Chapter 15 how does the Lehman deal break down? What is the proposed solution to backstop Lehman's toxic assets by the NY Fed?

8) In Chapter 16 what is the proposed "market based" solution to backstop AIG? Who is put in charge of this effort? What was the actual solution to bailing out AIG?