For Prof. MGK Only

ECO315 Introduction to Money and Banking

WEEK6 Homework (Financial Crisis)

Throughout the 2008 financial crisis, there are many examples related with the asymmetric information, the adverse problem, the moral hazard by the principal agent problem, and the conflicts of interest.

Find them related with following companies and financial programs:

· Investment Bank such as Lehman Brothers and Goldman Sachs

· Credit Rating Agency

· Subprime loans to collateral debt obligations (CDO)

· Credit default swaps (CDS)

· Fannie Mae and Freddie Mac (GSE)

· House prices and foreclosures