logging in or signing up GLOBAL FINANCIAL CRISIS puneet.brar17 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 123 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: January 16, 2011 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript GLOBAL FINANCIAL CRISISBY PROF. D.M.DESHPANDE : GLOBAL FINANCIAL CRISISBY PROF. D.M.DESHPANDE Slide 2: INTRODUCTION THE MEANING OF CRISIS THE EXTENT OF CRISIS MORE THAN ONE TRILLION $ IN BAIL OUT IN US ALONE Slide 3: FINANCIAL COSTS, JOB LOSSES-INCOMES-DEMAND-INVESTMENT- GROWTH RATES-VICIOUS CIRCLE THE GENSIS OF THE CRISIS STARTED WITH THE SUB-PRIME CRISIS-WHAT IS IT? HOME LOANS TO UNDESERVING BORROWERS PRIME VS SUB-PRIME LENDING Slide 4: NO INTEREST FOR TWO YEARS VARIOUS INCENTIVES GIVEN TO BOST HOAM LOANS BOOMING PROPERTY PRICES IN US FROM 2003 TO 2007-THEN THE CRASH FORECLOSURES-PROPERTY MORTGAGES BAD LOANS-TOXIC ASSETS FINANCIAL ENGINEERING : FINANCIAL ENGINEERING NOT THE END OF THE STORY RETAIL BANKS NEEDED MORE FUNDS SO, THEY SOLD MORTGAGE LOANS HEDGE FUNDS AND INVESTMENT BANKS RETAIL BANKS-GOT MORE MONEY TO LEND INTERMEDIARIES BUNDLED THEM IN TO CDO’S AND SOLD THEM OFF. Slide 6: PENSION FUNDS-NOT ALLOWED TO INVEST IN LESS THAN TRIPLE/DOUBLE A RATING BUT THEY WANTED TO SHARE THE PIE PF’S INVESTED IN BETTER RATED HEDGE AND INSURANCE FUNDS INS. FIRMS WROTE CDS FOR PF’S SO EVERY ONE GOT IN TO THE ACT. Slide 7: WITH MIXED UP CDO’S-BECAME VERY DIFFICULT TO FIND OUT RISK INTERMEDIARIES, INDIVIDUALS GOT CAUGHT IN THE CHAIN CITI AND OTHER INTERNATIONAL BANKS SUFFERED COMPLEX FINACIAL PRODUCTS WERE ENGINEERED BY WALL STREET FIRMS THE FALL OF THE MIGHTY : THE FALL OF THE MIGHTY LEHMAN BROS. FELL-AIG, FREDDIE MAC FREDDIE MAE AND MERRIL LYNCH BAILED OUT EVEN GOLDMAN SACH WAS IN TROUBLE-BAILED OUT BY WARREN BUFET MADOFF’S SCAM FORMER CHAIRMAN OF NASDAQ HIGHLY RESPECTED AND REPUTED $50 BILLION EXPECTED LOSS MADOFF’S SCAM (CONT’D) : MADOFF’S SCAM (CONT’D) THE RICH AND THE POWERFUL-HIS CLIENTS-INT’L BANKS, CHARITIES, EDUCATIIONAL INSTITUTIONS,TOO. HE RAN A PONZI SCHEME REWARDING 1 TO 2% RETURN EVERY MONTH WITH THE CRISIS-REFUNDS GREW DEVOID OF FRESH INVESTMENTS, MADOFF HAD TO ADMIT HIS DECIET Slide 10: WARNING SIGNALS-WHISTLE BLOWERS-IN 99 FINANCIAL ANALYST HAD WARNED SEC GAVE MADOFF CLEAN CHIT AS LATE AS 2007 FOR A $50 BILLION FIRM-ACCOUNTING FIRM CHOSEN-UNHEARD OF MADOFF PUT HIS CLIENTS’ MONEY IN HIS ADVISORY FIRM-AUDITORS DID NOT OBJECTOR WERE NOT EVEN AWARE! INVESTMENT BANK MODEL : INVESTMENT BANK MODEL REGULATORS AND AUDITORS-A LOT TO EXPLAIN CONVERSION IN TO RETAIL BANKS INVEST. BANKERS PAID HUGE SALARIES AND BONUSES FOR BETTING ON STOCK MARKETS HAS CAPITALISM FAILED? : HAS CAPITALISM FAILED? MOVE TOWARDS GREATER STATE’S ROLE. LEFT IS EMBOLDENED-WE TOLD YOU SO! NO THANKS-COMMUNISM TOO HAS FAILED HENCE THEY HAVE EMBRACED MARKET ECONOMY Slide 13: UNFETTERED AND UNREGULATED MARKETS HAVE FAILED IF REGULATORS, AUDITORS, ACCOUNTANTS AND RATING AGENCIES FAILED DO NOT BLAME CAPITALISM WE DO NOT MORE REGULATION Slide 14: THE STATE TO PLAY THE ROLE OF FACILITATING BUSINESS MORE REFORMS You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
GLOBAL FINANCIAL CRISIS puneet.brar17 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 123 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: January 16, 2011 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript GLOBAL FINANCIAL CRISISBY PROF. D.M.DESHPANDE : GLOBAL FINANCIAL CRISISBY PROF. D.M.DESHPANDE Slide 2: INTRODUCTION THE MEANING OF CRISIS THE EXTENT OF CRISIS MORE THAN ONE TRILLION $ IN BAIL OUT IN US ALONE Slide 3: FINANCIAL COSTS, JOB LOSSES-INCOMES-DEMAND-INVESTMENT- GROWTH RATES-VICIOUS CIRCLE THE GENSIS OF THE CRISIS STARTED WITH THE SUB-PRIME CRISIS-WHAT IS IT? HOME LOANS TO UNDESERVING BORROWERS PRIME VS SUB-PRIME LENDING Slide 4: NO INTEREST FOR TWO YEARS VARIOUS INCENTIVES GIVEN TO BOST HOAM LOANS BOOMING PROPERTY PRICES IN US FROM 2003 TO 2007-THEN THE CRASH FORECLOSURES-PROPERTY MORTGAGES BAD LOANS-TOXIC ASSETS FINANCIAL ENGINEERING : FINANCIAL ENGINEERING NOT THE END OF THE STORY RETAIL BANKS NEEDED MORE FUNDS SO, THEY SOLD MORTGAGE LOANS HEDGE FUNDS AND INVESTMENT BANKS RETAIL BANKS-GOT MORE MONEY TO LEND INTERMEDIARIES BUNDLED THEM IN TO CDO’S AND SOLD THEM OFF. Slide 6: PENSION FUNDS-NOT ALLOWED TO INVEST IN LESS THAN TRIPLE/DOUBLE A RATING BUT THEY WANTED TO SHARE THE PIE PF’S INVESTED IN BETTER RATED HEDGE AND INSURANCE FUNDS INS. FIRMS WROTE CDS FOR PF’S SO EVERY ONE GOT IN TO THE ACT. Slide 7: WITH MIXED UP CDO’S-BECAME VERY DIFFICULT TO FIND OUT RISK INTERMEDIARIES, INDIVIDUALS GOT CAUGHT IN THE CHAIN CITI AND OTHER INTERNATIONAL BANKS SUFFERED COMPLEX FINACIAL PRODUCTS WERE ENGINEERED BY WALL STREET FIRMS THE FALL OF THE MIGHTY : THE FALL OF THE MIGHTY LEHMAN BROS. FELL-AIG, FREDDIE MAC FREDDIE MAE AND MERRIL LYNCH BAILED OUT EVEN GOLDMAN SACH WAS IN TROUBLE-BAILED OUT BY WARREN BUFET MADOFF’S SCAM FORMER CHAIRMAN OF NASDAQ HIGHLY RESPECTED AND REPUTED $50 BILLION EXPECTED LOSS MADOFF’S SCAM (CONT’D) : MADOFF’S SCAM (CONT’D) THE RICH AND THE POWERFUL-HIS CLIENTS-INT’L BANKS, CHARITIES, EDUCATIIONAL INSTITUTIONS,TOO. HE RAN A PONZI SCHEME REWARDING 1 TO 2% RETURN EVERY MONTH WITH THE CRISIS-REFUNDS GREW DEVOID OF FRESH INVESTMENTS, MADOFF HAD TO ADMIT HIS DECIET Slide 10: WARNING SIGNALS-WHISTLE BLOWERS-IN 99 FINANCIAL ANALYST HAD WARNED SEC GAVE MADOFF CLEAN CHIT AS LATE AS 2007 FOR A $50 BILLION FIRM-ACCOUNTING FIRM CHOSEN-UNHEARD OF MADOFF PUT HIS CLIENTS’ MONEY IN HIS ADVISORY FIRM-AUDITORS DID NOT OBJECTOR WERE NOT EVEN AWARE! INVESTMENT BANK MODEL : INVESTMENT BANK MODEL REGULATORS AND AUDITORS-A LOT TO EXPLAIN CONVERSION IN TO RETAIL BANKS INVEST. BANKERS PAID HUGE SALARIES AND BONUSES FOR BETTING ON STOCK MARKETS HAS CAPITALISM FAILED? : HAS CAPITALISM FAILED? MOVE TOWARDS GREATER STATE’S ROLE. LEFT IS EMBOLDENED-WE TOLD YOU SO! NO THANKS-COMMUNISM TOO HAS FAILED HENCE THEY HAVE EMBRACED MARKET ECONOMY Slide 13: UNFETTERED AND UNREGULATED MARKETS HAVE FAILED IF REGULATORS, AUDITORS, ACCOUNTANTS AND RATING AGENCIES FAILED DO NOT BLAME CAPITALISM WE DO NOT MORE REGULATION Slide 14: THE STATE TO PLAY THE ROLE OF FACILITATING BUSINESS MORE REFORMS