SlideShare a Scribd company logo

imapct of financial crisis and role of financial institutions in this crisis

•Download as PPT, PDF•
•
Ranjith Reddy
Ranjith Reddy
Economy & FinanceBusiness
1 of 20
Created by: RANJITH KUMAR.C Financial crisis 2008
Let’s start with Basics
CAN ANY ONE KNOWS WHAT IS THE PROFIT OF SBI FOR THE FINANCIAL YEAR 2007-08 ? ,[object Object],[object Object]
Bank ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: The Economist: Making Sense of Modern Economy
Investment Banks ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: The Economist: Making Sense of Modern Economy
Insurance companies ,[object Object],[object Object],[object Object],[object Object],[object Object]
Mortgage Broker ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Wikipedia
Sub-prime mortgage – What’s that? ,[object Object],[object Object],[object Object],[object Object],[object Object],Source: Wikipedia
 
Details : Private Sub-prime mortgage process 1. Brokers identify borrowers 2. Originator and broker identify a loan for borrower after looking at his credit rating 3. Formal application for loan by borrower 4. Originator transfers the loan to the subsidiary of an investment banking firm ( Seller) 5. Seller(Investment bank) collects a pool of loans and call it as SPE/SIV/SPV. Off balance sheet instrument 6. SPV can be a corporation, partnership or limited liability company. Most often a Trust. It has nothing else except mortgage loans 7. Underwriter purchases all the securities (derivative income streams) 8. In designing SPV and its tranches underwriter works with credit rating agencies 9. Underwriter then sells the securities to the investors 10. High rated tranches might be guaranteed by a 3rd party insurance company 11. Seller also arranges to sell the rights to service the loan pool to a company or sometimes Originator takes these rights 12. MERS – document custodian. Company to keep track of mountains of paper work on loans in the pool. At National level. Source : Subprime Mortgage Market Turmoil , testimony by Christopher L. Peterson
Good days turn bad. Crisis at the door (mid 2006 onwards): ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
How Sub prime became Global Financial Crisis? ,[object Object],[object Object],[object Object],[object Object],Source: Financial Times , http://www.ft.com/cms/s/0/a09f751e-6187-11dd-af94-000077b07658,dwp_uuid=698e638e-e39a-11dc-8799-0000779fd2ac.html In billion US $ How could problems with sub prime mortgages, being such a small sector of global financial markets, provoke such dislocation?
Top 10 Largest Bank Failures Sept. 25 failure of Washington Mutual was bar far the largest in US history. Sold to JP Morgan Chase by govt. for $1.9B plus WaMu’s loans and deposits Resurgent bank failures (13 in 2008 as of Oct. 12) are symptomatic of weakness in the financial system. FDIC says many more may fail Failure of Indy Mac was the 4 th largest in history
Sub prime losses by Big Banks Worldwide :US$ 586.2 billion and still counting Source: Financial Times
Stakes Taken by Federal Government in 9 Large US Banks ,[object Object],[object Object],[object Object]
Investments devalued across the Globe Source: BBC News, http://news.bbc.co.uk/2/hi/talking_point/7644574.stm
Sub prime impact across globe Source: Financial Times
Impact of Financial crisis-felt across the globe Source: Reuters, http://www.reuters.com/news/globalcoverage/creditcrisis
Distribution of $700 Billion in Funds Under Emergency Economic Stabilization Act of 2008 ,[object Object],[object Object],[object Object]
It is the right time to buy a house in U.S rather than buying a house in Hyderabad. Thank ”u”

Recommended

Global Financial Crisis 2007-08
Global Financial Crisis 2007-08Global Financial Crisis 2007-08
Global Financial Crisis 2007-08Bipin Banerjee D M
 
The reasons of 2008 Financial Crisis
The reasons of 2008 Financial Crisis The reasons of 2008 Financial Crisis
The reasons of 2008 Financial Crisis seanjunxiao
 
Financial crisis 2008
Financial crisis 2008Financial crisis 2008
Financial crisis 2008Muheed Khan
 
After the storm- Global Financial Crisis 27 aug 2010
After the storm- Global Financial Crisis 27 aug 2010After the storm- Global Financial Crisis 27 aug 2010
After the storm- Global Financial Crisis 27 aug 2010Gaurav Sharma
 
Abc Of Global Financial Crisis 2008
Abc Of Global Financial Crisis 2008Abc Of Global Financial Crisis 2008
Abc Of Global Financial Crisis 2008Arif Anis Malik FRSA
 
Global financial crisis
Global financial crisisGlobal financial crisis
Global financial crisisnabila km
 
SubPrime Crisis
SubPrime CrisisSubPrime Crisis
SubPrime CrisisAnup Tiwari
 
Us Credit Crisis and Feds Response
Us Credit Crisis and Feds ResponseUs Credit Crisis and Feds Response
Us Credit Crisis and Feds Responseokili
 

Recommended

Global Financial Crisis 2007-08
Global Financial Crisis 2007-08Global Financial Crisis 2007-08
Global Financial Crisis 2007-08Bipin Banerjee D M
 
The reasons of 2008 Financial Crisis
The reasons of 2008 Financial Crisis The reasons of 2008 Financial Crisis
The reasons of 2008 Financial Crisis seanjunxiao
 
Financial crisis 2008
Financial crisis 2008Financial crisis 2008
Financial crisis 2008Muheed Khan
 
After the storm- Global Financial Crisis 27 aug 2010
After the storm- Global Financial Crisis 27 aug 2010After the storm- Global Financial Crisis 27 aug 2010
After the storm- Global Financial Crisis 27 aug 2010Gaurav Sharma
 
Abc Of Global Financial Crisis 2008
Abc Of Global Financial Crisis 2008Abc Of Global Financial Crisis 2008
Abc Of Global Financial Crisis 2008Arif Anis Malik FRSA
 
Global financial crisis
Global financial crisisGlobal financial crisis
Global financial crisisnabila km
 
SubPrime Crisis
SubPrime CrisisSubPrime Crisis
SubPrime CrisisAnup Tiwari
 
Us Credit Crisis and Feds Response
Us Credit Crisis and Feds ResponseUs Credit Crisis and Feds Response
Us Credit Crisis and Feds Responseokili
 
The global financial crisis of 2008
The global financial crisis of 2008The global financial crisis of 2008
The global financial crisis of 2008Academic Research Paper Writing Services
 
Credit crisis
Credit crisisCredit crisis
Credit crisisDeepak Agarwal
 
The Financial Crisis of 2008
The Financial Crisis of 2008The Financial Crisis of 2008
The Financial Crisis of 2008Douglas Tengdin, CFA
 
Subprime crisis
Subprime crisisSubprime crisis
Subprime crisissamir2512
 
Explaining the Financial Crisis
Explaining the Financial CrisisExplaining the Financial Crisis
Explaining the Financial CrisisSal DB
 
The subprime crisis in 2008
The subprime crisis in 2008The subprime crisis in 2008
The subprime crisis in 2008Warren Kang
 
Subprime Mortgage Crisis 2008
Subprime Mortgage Crisis 2008Subprime Mortgage Crisis 2008
Subprime Mortgage Crisis 2008Robin Thieu
 
Global financial crisis
Global financial crisisGlobal financial crisis
Global financial crisisMiral_Aeli
 
US-Financial Crisis
US-Financial CrisisUS-Financial Crisis
US-Financial Crisisloneranger85
 
financial crisis
financial crisisfinancial crisis
financial crisisinterior exterior solutions
 
Global financial crisis
Global financial crisisGlobal financial crisis
Global financial crisiskamal9089
 
Subprime Mortgage Crisis & Securitization 19 jan-2014 - v 01.00.05
Subprime Mortgage Crisis & Securitization 19 jan-2014 - v 01.00.05Subprime Mortgage Crisis & Securitization 19 jan-2014 - v 01.00.05
Subprime Mortgage Crisis & Securitization 19 jan-2014 - v 01.00.05Walid Zohair
 
The global financial crisis 2008
The global financial crisis 2008The global financial crisis 2008
The global financial crisis 2008Al-azhar University - faculty of commerce
 
Global Financial Crisis 2008
Global Financial Crisis 2008Global Financial Crisis 2008
Global Financial Crisis 2008krishnakantjalan
 
world financial crisis 2008 and impact over the tourism
world financial crisis 2008 and impact over the tourismworld financial crisis 2008 and impact over the tourism
world financial crisis 2008 and impact over the tourismGocha Sharvashidze
 
Causes of 2009 financial crisis in us
Causes of 2009 financial crisis in usCauses of 2009 financial crisis in us
Causes of 2009 financial crisis in usKardan university, kabul , Afghanistan
 
Sub Prime Crisis And Its Impact
Sub Prime Crisis And Its ImpactSub Prime Crisis And Its Impact
Sub Prime Crisis And Its ImpactNitin Agarwal
 
The Credit Crisis Explained
The Credit Crisis ExplainedThe Credit Crisis Explained
The Credit Crisis Explainedjohnalan
 
UBS & Subprime Mortgage Crises
UBS & Subprime Mortgage CrisesUBS & Subprime Mortgage Crises
UBS & Subprime Mortgage CrisesRicha Arora
 
Financial crisis - The Great Depression and The Global Crisis 2008
Financial crisis - The Great Depression and The Global Crisis 2008Financial crisis - The Great Depression and The Global Crisis 2008
Financial crisis - The Great Depression and The Global Crisis 2008Srikanth Akella
 
Financial Crisis 2008
Financial Crisis 2008Financial Crisis 2008
Financial Crisis 2008Thanuja Seneviratne
 
The cause of american financial crisis
The cause of american financial crisisThe cause of american financial crisis
The cause of american financial crisismanibosca
 

More Related Content

What's hot

Subprime crisis
Subprime crisisSubprime crisis
Subprime crisissamir2512
 
Explaining the Financial Crisis
Explaining the Financial CrisisExplaining the Financial Crisis
Explaining the Financial CrisisSal DB
 
The subprime crisis in 2008
The subprime crisis in 2008The subprime crisis in 2008
The subprime crisis in 2008Warren Kang
 
Subprime Mortgage Crisis 2008
Subprime Mortgage Crisis 2008Subprime Mortgage Crisis 2008
Subprime Mortgage Crisis 2008Robin Thieu
 
Global financial crisis
Global financial crisisGlobal financial crisis
Global financial crisisMiral_Aeli
 
US-Financial Crisis
US-Financial CrisisUS-Financial Crisis
US-Financial Crisisloneranger85
 
Global financial crisis
Global financial crisisGlobal financial crisis
Global financial crisiskamal9089
 
Subprime Mortgage Crisis & Securitization 19 jan-2014 - v 01.00.05
Subprime Mortgage Crisis & Securitization 19 jan-2014 - v 01.00.05Subprime Mortgage Crisis & Securitization 19 jan-2014 - v 01.00.05
Subprime Mortgage Crisis & Securitization 19 jan-2014 - v 01.00.05Walid Zohair
 
Global Financial Crisis 2008
Global Financial Crisis 2008Global Financial Crisis 2008
Global Financial Crisis 2008krishnakantjalan
 
world financial crisis 2008 and impact over the tourism
world financial crisis 2008 and impact over the tourismworld financial crisis 2008 and impact over the tourism
world financial crisis 2008 and impact over the tourismGocha Sharvashidze
 
Sub Prime Crisis And Its Impact
Sub Prime Crisis And Its ImpactSub Prime Crisis And Its Impact
Sub Prime Crisis And Its ImpactNitin Agarwal
 
The Credit Crisis Explained
The Credit Crisis ExplainedThe Credit Crisis Explained
The Credit Crisis Explainedjohnalan
 
UBS & Subprime Mortgage Crises
UBS & Subprime Mortgage CrisesUBS & Subprime Mortgage Crises
UBS & Subprime Mortgage CrisesRicha Arora
 
Financial crisis - The Great Depression and The Global Crisis 2008
Financial crisis - The Great Depression and The Global Crisis 2008Financial crisis - The Great Depression and The Global Crisis 2008
Financial crisis - The Great Depression and The Global Crisis 2008Srikanth Akella
 

What's hot (20)

The global financial crisis of 2008
The global financial crisis of 2008The global financial crisis of 2008
The global financial crisis of 2008
 
Credit crisis
Credit crisisCredit crisis
Credit crisis
 
The Financial Crisis of 2008
The Financial Crisis of 2008The Financial Crisis of 2008
The Financial Crisis of 2008
 
Subprime crisis
Subprime crisisSubprime crisis
Subprime crisis
 
Explaining the Financial Crisis
Explaining the Financial CrisisExplaining the Financial Crisis
Explaining the Financial Crisis
 
The subprime crisis in 2008
The subprime crisis in 2008The subprime crisis in 2008
The subprime crisis in 2008
 
Subprime Mortgage Crisis 2008
Subprime Mortgage Crisis 2008Subprime Mortgage Crisis 2008
Subprime Mortgage Crisis 2008
 
Global financial crisis
Global financial crisisGlobal financial crisis
Global financial crisis
 
US-Financial Crisis
US-Financial CrisisUS-Financial Crisis
US-Financial Crisis
 
financial crisis
financial crisisfinancial crisis
financial crisis
 
Global financial crisis
Global financial crisisGlobal financial crisis
Global financial crisis
 
Subprime Mortgage Crisis & Securitization 19 jan-2014 - v 01.00.05
Subprime Mortgage Crisis & Securitization 19 jan-2014 - v 01.00.05Subprime Mortgage Crisis & Securitization 19 jan-2014 - v 01.00.05
Subprime Mortgage Crisis & Securitization 19 jan-2014 - v 01.00.05
 
The global financial crisis 2008
The global financial crisis 2008The global financial crisis 2008
The global financial crisis 2008
 
Global Financial Crisis 2008
Global Financial Crisis 2008Global Financial Crisis 2008
Global Financial Crisis 2008
 
world financial crisis 2008 and impact over the tourism
world financial crisis 2008 and impact over the tourismworld financial crisis 2008 and impact over the tourism
world financial crisis 2008 and impact over the tourism
 
Causes of 2009 financial crisis in us
Causes of 2009 financial crisis in usCauses of 2009 financial crisis in us
Causes of 2009 financial crisis in us
 
Sub Prime Crisis And Its Impact
Sub Prime Crisis And Its ImpactSub Prime Crisis And Its Impact
Sub Prime Crisis And Its Impact
 
The Credit Crisis Explained
The Credit Crisis ExplainedThe Credit Crisis Explained
The Credit Crisis Explained
 
UBS & Subprime Mortgage Crises
UBS & Subprime Mortgage CrisesUBS & Subprime Mortgage Crises
UBS & Subprime Mortgage Crises
 
Financial crisis - The Great Depression and The Global Crisis 2008
Financial crisis - The Great Depression and The Global Crisis 2008Financial crisis - The Great Depression and The Global Crisis 2008
Financial crisis - The Great Depression and The Global Crisis 2008
 

Viewers also liked

The cause of american financial crisis
The cause of american financial crisisThe cause of american financial crisis
The cause of american financial crisismanibosca
 
The Financial Crisis, Lecture Five: The Institutions
The Financial Crisis, Lecture Five: The InstitutionsThe Financial Crisis, Lecture Five: The Institutions
The Financial Crisis, Lecture Five: The InstitutionsConor McCabe
 
Insider movie assignment
Insider movie assignmentInsider movie assignment
Insider movie assignmentBianca Butler
 
Financial Crisis Explained (Language). Simple but to the point!
Financial Crisis Explained (Language). Simple but to the point!Financial Crisis Explained (Language). Simple but to the point!
Financial Crisis Explained (Language). Simple but to the point!Onmyfeet
 
Inside job-movie review-corporate governance
Inside job-movie review-corporate governanceInside job-movie review-corporate governance
Inside job-movie review-corporate governancerachelpriyanka
 
The Economic Crisis of 2008 (US Housing Bubble) - Inside Job Movie
The Economic Crisis of 2008 (US Housing Bubble) - Inside Job Movie The Economic Crisis of 2008 (US Housing Bubble) - Inside Job Movie
The Economic Crisis of 2008 (US Housing Bubble) - Inside Job Movievalliappan1991
 
Ethics Seminar—Discussion on The Insider (film)
Ethics Seminar—Discussion on The Insider (film)Ethics Seminar—Discussion on The Insider (film)
Ethics Seminar—Discussion on The Insider (film)Joshua, Weng Yew Wong
 
Role of Investment Banks in the Financial Crisis of 2008
Role of Investment Banks in the Financial Crisis of 2008Role of Investment Banks in the Financial Crisis of 2008
Role of Investment Banks in the Financial Crisis of 2008Mujtaba Zeeshan
 
2008 Global Financial Crisis
2008 Global Financial Crisis 2008 Global Financial Crisis
2008 Global Financial Crisis MJM Consulting
 
Global Financial Crisis of 2008-09 & it’s Impact
Global Financial Crisis of 2008-09 & it’s ImpactGlobal Financial Crisis of 2008-09 & it’s Impact
Global Financial Crisis of 2008-09 & it’s ImpactDipesh Sans
 
The Economic Crisis - Infographics
The Economic Crisis - InfographicsThe Economic Crisis - Infographics
The Economic Crisis - InfographicsEcoLabs
 
Global financial crisis 2008
Global financial crisis 2008Global financial crisis 2008
Global financial crisis 2008valliappan1991
 
2008 World Economic crisis, Global Meltdown, Global Financial Crisis
2008 World Economic crisis, Global Meltdown, Global Financial Crisis2008 World Economic crisis, Global Meltdown, Global Financial Crisis
2008 World Economic crisis, Global Meltdown, Global Financial CrisisJagmeet Singh Bajaj
 
Strengthening economic-resilience-insights-from-the-post-1970-record-of-sever...
Strengthening economic-resilience-insights-from-the-post-1970-record-of-sever...Strengthening economic-resilience-insights-from-the-post-1970-record-of-sever...
Strengthening economic-resilience-insights-from-the-post-1970-record-of-sever...OECD, Economics Department
 
Subprime Crisis(Brief)
Subprime Crisis(Brief)Subprime Crisis(Brief)
Subprime Crisis(Brief)Rohan Negi
 
The Literature Review Process
The Literature Review ProcessThe Literature Review Process
The Literature Review Processannielibrarian
 

Viewers also liked (19)

Financial Crisis 2008
Financial Crisis 2008Financial Crisis 2008
Financial Crisis 2008
 
The cause of american financial crisis
The cause of american financial crisisThe cause of american financial crisis
The cause of american financial crisis
 
The Financial Crisis, Lecture Five: The Institutions
The Financial Crisis, Lecture Five: The InstitutionsThe Financial Crisis, Lecture Five: The Institutions
The Financial Crisis, Lecture Five: The Institutions
 
Insider movie assignment
Insider movie assignmentInsider movie assignment
Insider movie assignment
 
Inside Job
Inside Job Inside Job
Inside Job
 
Financial Crisis Explained (Language). Simple but to the point!
Financial Crisis Explained (Language). Simple but to the point!Financial Crisis Explained (Language). Simple but to the point!
Financial Crisis Explained (Language). Simple but to the point!
 
Inside job-movie review-corporate governance
Inside job-movie review-corporate governanceInside job-movie review-corporate governance
Inside job-movie review-corporate governance
 
The Economic Crisis of 2008 (US Housing Bubble) - Inside Job Movie
The Economic Crisis of 2008 (US Housing Bubble) - Inside Job Movie The Economic Crisis of 2008 (US Housing Bubble) - Inside Job Movie
The Economic Crisis of 2008 (US Housing Bubble) - Inside Job Movie
 
Ethics Seminar—Discussion on The Insider (film)
Ethics Seminar—Discussion on The Insider (film)Ethics Seminar—Discussion on The Insider (film)
Ethics Seminar—Discussion on The Insider (film)
 
Crisis 2008 - History, Psychology and Future
Crisis 2008 - History, Psychology and FutureCrisis 2008 - History, Psychology and Future
Crisis 2008 - History, Psychology and Future
 
Role of Investment Banks in the Financial Crisis of 2008
Role of Investment Banks in the Financial Crisis of 2008Role of Investment Banks in the Financial Crisis of 2008
Role of Investment Banks in the Financial Crisis of 2008
 
2008 Global Financial Crisis
2008 Global Financial Crisis 2008 Global Financial Crisis
2008 Global Financial Crisis
 
Global Financial Crisis of 2008-09 & it’s Impact
Global Financial Crisis of 2008-09 & it’s ImpactGlobal Financial Crisis of 2008-09 & it’s Impact
Global Financial Crisis of 2008-09 & it’s Impact
 
The Economic Crisis - Infographics
The Economic Crisis - InfographicsThe Economic Crisis - Infographics
The Economic Crisis - Infographics
 
Global financial crisis 2008
Global financial crisis 2008Global financial crisis 2008
Global financial crisis 2008
 
2008 World Economic crisis, Global Meltdown, Global Financial Crisis
2008 World Economic crisis, Global Meltdown, Global Financial Crisis2008 World Economic crisis, Global Meltdown, Global Financial Crisis
2008 World Economic crisis, Global Meltdown, Global Financial Crisis
 
Strengthening economic-resilience-insights-from-the-post-1970-record-of-sever...
Strengthening economic-resilience-insights-from-the-post-1970-record-of-sever...Strengthening economic-resilience-insights-from-the-post-1970-record-of-sever...
Strengthening economic-resilience-insights-from-the-post-1970-record-of-sever...
 
Subprime Crisis(Brief)
Subprime Crisis(Brief)Subprime Crisis(Brief)
Subprime Crisis(Brief)
 
The Literature Review Process
The Literature Review ProcessThe Literature Review Process
The Literature Review Process
 

Similar to imapct of financial crisis and role of financial institutions in this crisis

Financial Crisis in detail
Financial Crisis in detailFinancial Crisis in detail
Financial Crisis in detailParshwadeep
 
How To Navigate
How To NavigateHow To Navigate
How To NavigateMCDFS
 
Exotic Instruments and 2007-2009 Financial Crisis - RMN
Exotic Instruments and 2007-2009 Financial Crisis - RMNExotic Instruments and 2007-2009 Financial Crisis - RMN
Exotic Instruments and 2007-2009 Financial Crisis - RMNRonald Newton, PMP, CSM
 
Bus106 wk11 ch10 the financial services industry in canada
Bus106 wk11 ch10 the financial services industry in canadaBus106 wk11 ch10 the financial services industry in canada
Bus106 wk11 ch10 the financial services industry in canadaBhupesh Shah
 
El rady-intro-summary
El rady-intro-summaryEl rady-intro-summary
El rady-intro-summaryBMLP
 
Are Collateralized Loan Obligations the ticking time bomb that could trigger ...
Are Collateralized Loan Obligations the ticking time bomb that could trigger ...Are Collateralized Loan Obligations the ticking time bomb that could trigger ...
Are Collateralized Loan Obligations the ticking time bomb that could trigger ...Kaan Sapanatan, CFA, CAIA
 
jimmy stepanian | Real estate commercial financing ideas | Jim stepanian |
jimmy stepanian | Real estate commercial financing ideas | Jim stepanian |jimmy stepanian | Real estate commercial financing ideas | Jim stepanian |
jimmy stepanian | Real estate commercial financing ideas | Jim stepanian |Jimmy Stepanian
 
Securitisation Summit 29 November 2001
Securitisation Summit 29 November 2001Securitisation Summit 29 November 2001
Securitisation Summit 29 November 2001simonst
 
FMA of NH: Safeguarding Cash
FMA of NH: Safeguarding CashFMA of NH: Safeguarding Cash
FMA of NH: Safeguarding Cashtravismd
 
FIN 4303 – RVEFinancial Markets and InstitutionsSpring 2019G.docx
FIN 4303 – RVEFinancial Markets and InstitutionsSpring 2019G.docxFIN 4303 – RVEFinancial Markets and InstitutionsSpring 2019G.docx
FIN 4303 – RVEFinancial Markets and InstitutionsSpring 2019G.docxcharlottej5
 
Pyatt Boardmark Investor Presentation Fund II
Pyatt Boardmark Investor Presentation Fund IIPyatt Boardmark Investor Presentation Fund II
Pyatt Boardmark Investor Presentation Fund IIAlan Chu
 
Securitization and 2008 financial crisis
Securitization and 2008 financial crisisSecuritization and 2008 financial crisis
Securitization and 2008 financial crisisShubham Agrawal
 

Similar to imapct of financial crisis and role of financial institutions in this crisis (20)

Financial Crisis in detail
Financial Crisis in detailFinancial Crisis in detail
Financial Crisis in detail
 
How To Navigate
How To NavigateHow To Navigate
How To Navigate
 
Stocks And Bonds
Stocks And BondsStocks And Bonds
Stocks And Bonds
 
financial-crisis-2008
financial-crisis-2008 financial-crisis-2008
financial-crisis-2008
 
Exotic Instruments and 2007-2009 Financial Crisis - RMN
Exotic Instruments and 2007-2009 Financial Crisis - RMNExotic Instruments and 2007-2009 Financial Crisis - RMN
Exotic Instruments and 2007-2009 Financial Crisis - RMN
 
Bus106 wk11 ch10 the financial services industry in canada
Bus106 wk11 ch10 the financial services industry in canadaBus106 wk11 ch10 the financial services industry in canada
Bus106 wk11 ch10 the financial services industry in canada
 
El rady-intro-summary
El rady-intro-summaryEl rady-intro-summary
El rady-intro-summary
 
securitization
securitizationsecuritization
securitization
 
Are Collateralized Loan Obligations the ticking time bomb that could trigger ...
Are Collateralized Loan Obligations the ticking time bomb that could trigger ...Are Collateralized Loan Obligations the ticking time bomb that could trigger ...
Are Collateralized Loan Obligations the ticking time bomb that could trigger ...
 
Steven glaze kansas city gives simple guidance for you in home improvement.
Steven glaze kansas city gives simple guidance for you in home improvement.Steven glaze kansas city gives simple guidance for you in home improvement.
Steven glaze kansas city gives simple guidance for you in home improvement.
 
jimmy stepanian | Real estate commercial financing ideas | Jim stepanian |
jimmy stepanian | Real estate commercial financing ideas | Jim stepanian |jimmy stepanian | Real estate commercial financing ideas | Jim stepanian |
jimmy stepanian | Real estate commercial financing ideas | Jim stepanian |
 
Securitisation Summit 29 November 2001
Securitisation Summit 29 November 2001Securitisation Summit 29 November 2001
Securitisation Summit 29 November 2001
 
FMA of NH: Safeguarding Cash
FMA of NH: Safeguarding CashFMA of NH: Safeguarding Cash
FMA of NH: Safeguarding Cash
 
FIN 4303 – RVEFinancial Markets and InstitutionsSpring 2019G.docx
FIN 4303 – RVEFinancial Markets and InstitutionsSpring 2019G.docxFIN 4303 – RVEFinancial Markets and InstitutionsSpring 2019G.docx
FIN 4303 – RVEFinancial Markets and InstitutionsSpring 2019G.docx
 
Chap005
Chap005Chap005
Chap005
 
Pyatt Boardmark Investor Presentation Fund II
Pyatt Boardmark Investor Presentation Fund IIPyatt Boardmark Investor Presentation Fund II
Pyatt Boardmark Investor Presentation Fund II
 
PACE - BBVA
PACE - BBVAPACE - BBVA
PACE - BBVA
 
Capital market
Capital marketCapital market
Capital market
 
Securitization and 2008 financial crisis
Securitization and 2008 financial crisisSecuritization and 2008 financial crisis
Securitization and 2008 financial crisis
 
Lecture 1.ppt
Lecture 1.pptLecture 1.ppt
Lecture 1.ppt
 

Recently uploaded

magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdfmagnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdfHenry Tapper
 
Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]Commonwealth
 
原版1:1复刻温哥华岛大学毕业证Vancouver毕业证留信学历认证
原版1:1复刻温哥华岛大学毕业证Vancouver毕业证留信学历认证原版1:1复刻温哥华岛大学毕业证Vancouver毕业证留信学历认证
原版1:1复刻温哥华岛大学毕业证Vancouver毕业证留信学历认证rjrjkk
 
Call Girls Near Delhi Pride Hotel, New Delhi|9873777170
Call Girls Near Delhi Pride Hotel, New Delhi|9873777170Call Girls Near Delhi Pride Hotel, New Delhi|9873777170
Call Girls Near Delhi Pride Hotel, New Delhi|9873777170Sonam Pathan
 
原版1:1复刻堪萨斯大学毕业证KU毕业证留信学历认证
原版1:1复刻堪萨斯大学毕业证KU毕业证留信学历认证原版1:1复刻堪萨斯大学毕业证KU毕业证留信学历认证
原版1:1复刻堪萨斯大学毕业证KU毕业证留信学历认证jdkhjh
 
Financial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.pptFinancial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.ppttadegebreyesus
 
GOODSANDSERVICETAX IN INDIAN ECONOMY IMPACT
GOODSANDSERVICETAX IN INDIAN ECONOMY IMPACTGOODSANDSERVICETAX IN INDIAN ECONOMY IMPACT
GOODSANDSERVICETAX IN INDIAN ECONOMY IMPACTharshitverma1762
 
fca-bsps-decision-letter-redacted (1).pdf
fca-bsps-decision-letter-redacted (1).pdffca-bsps-decision-letter-redacted (1).pdf
fca-bsps-decision-letter-redacted (1).pdfHenry Tapper
 
Unveiling Business Expansion Trends in 2024
Unveiling Business Expansion Trends in 2024Unveiling Business Expansion Trends in 2024
Unveiling Business Expansion Trends in 2024Champak Jhagmag
 
project management information system lecture notes
project management information system lecture notesproject management information system lecture notes
project management information system lecture notesongomchris
 
Call Girls Near Me WhatsApp:+91-9833363713
Call Girls Near Me WhatsApp:+91-9833363713Call Girls Near Me WhatsApp:+91-9833363713
Call Girls Near Me WhatsApp:+91-9833363713Sonam Pathan
 
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...Amil baba
 
Stock Market Brief Deck for "this does not happen often".pdf
Stock Market Brief Deck for "this does not happen often".pdfStock Market Brief Deck for "this does not happen often".pdf
Stock Market Brief Deck for "this does not happen often".pdfMichael Silva
 
(办理学位证)加拿大萨省大学毕业证成绩单原版一比一
(办理学位证)加拿大萨省大学毕业证成绩单原版一比一(办理学位证)加拿大萨省大学毕业证成绩单原版一比一
(办理学位证)加拿大萨省大学毕业证成绩单原版一比一S SDS
 
PMFBY , Pradhan Mantri Fasal bima yojna
PMFBY , Pradhan Mantri Fasal bima yojnaPMFBY , Pradhan Mantri Fasal bima yojna
PMFBY , Pradhan Mantri Fasal bima yojnaDharmendra Kumar
 
Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Devarsh Vakil
 
Bladex 1Q24 Earning Results Presentation
Bladex 1Q24 Earning Results PresentationBladex 1Q24 Earning Results Presentation
Bladex 1Q24 Earning Results PresentationBladex
 

Recently uploaded (20)

magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdfmagnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
 
Q1 2024 Newsletter | Financial Synergies Wealth Advisors
Q1 2024 Newsletter | Financial Synergies Wealth AdvisorsQ1 2024 Newsletter | Financial Synergies Wealth Advisors
Q1 2024 Newsletter | Financial Synergies Wealth Advisors
 
Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]
 
原版1:1复刻温哥华岛大学毕业证Vancouver毕业证留信学历认证
原版1:1复刻温哥华岛大学毕业证Vancouver毕业证留信学历认证原版1:1复刻温哥华岛大学毕业证Vancouver毕业证留信学历认证
原版1:1复刻温哥华岛大学毕业证Vancouver毕业证留信学历认证
 
Call Girls Near Delhi Pride Hotel, New Delhi|9873777170
Call Girls Near Delhi Pride Hotel, New Delhi|9873777170Call Girls Near Delhi Pride Hotel, New Delhi|9873777170
Call Girls Near Delhi Pride Hotel, New Delhi|9873777170
 
原版1:1复刻堪萨斯大学毕业证KU毕业证留信学历认证
原版1:1复刻堪萨斯大学毕业证KU毕业证留信学历认证原版1:1复刻堪萨斯大学毕业证KU毕业证留信学历认证
原版1:1复刻堪萨斯大学毕业证KU毕业证留信学历认证
 
Financial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.pptFinancial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.ppt
 
GOODSANDSERVICETAX IN INDIAN ECONOMY IMPACT
GOODSANDSERVICETAX IN INDIAN ECONOMY IMPACTGOODSANDSERVICETAX IN INDIAN ECONOMY IMPACT
GOODSANDSERVICETAX IN INDIAN ECONOMY IMPACT
 
fca-bsps-decision-letter-redacted (1).pdf
fca-bsps-decision-letter-redacted (1).pdffca-bsps-decision-letter-redacted (1).pdf
fca-bsps-decision-letter-redacted (1).pdf
 
Unveiling Business Expansion Trends in 2024
Unveiling Business Expansion Trends in 2024Unveiling Business Expansion Trends in 2024
Unveiling Business Expansion Trends in 2024
 
project management information system lecture notes
project management information system lecture notesproject management information system lecture notes
project management information system lecture notes
 
Call Girls Near Me WhatsApp:+91-9833363713
Call Girls Near Me WhatsApp:+91-9833363713Call Girls Near Me WhatsApp:+91-9833363713
Call Girls Near Me WhatsApp:+91-9833363713
 
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
 
Stock Market Brief Deck for "this does not happen often".pdf
Stock Market Brief Deck for "this does not happen often".pdfStock Market Brief Deck for "this does not happen often".pdf
Stock Market Brief Deck for "this does not happen often".pdf
 
(办理学位证)加拿大萨省大学毕业证成绩单原版一比一
(办理学位证)加拿大萨省大学毕业证成绩单原版一比一(办理学位证)加拿大萨省大学毕业证成绩单原版一比一
(办理学位证)加拿大萨省大学毕业证成绩单原版一比一
 
PMFBY , Pradhan Mantri Fasal bima yojna
PMFBY , Pradhan Mantri Fasal bima yojnaPMFBY , Pradhan Mantri Fasal bima yojna
PMFBY , Pradhan Mantri Fasal bima yojna
 
Monthly Economic Monitoring of Ukraine No 231, April 2024
Monthly Economic Monitoring of Ukraine No 231, April 2024Monthly Economic Monitoring of Ukraine No 231, April 2024
Monthly Economic Monitoring of Ukraine No 231, April 2024
 
Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024
 
🔝+919953056974 🔝young Delhi Escort service Pusa Road
🔝+919953056974 🔝young Delhi Escort service Pusa Road🔝+919953056974 🔝young Delhi Escort service Pusa Road
🔝+919953056974 🔝young Delhi Escort service Pusa Road
 
Bladex 1Q24 Earning Results Presentation
Bladex 1Q24 Earning Results PresentationBladex 1Q24 Earning Results Presentation
Bladex 1Q24 Earning Results Presentation
 

imapct of financial crisis and role of financial institutions in this crisis

  • 1. Created by: RANJITH KUMAR.C Financial crisis 2008
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.  
  • 10. Details : Private Sub-prime mortgage process 1. Brokers identify borrowers 2. Originator and broker identify a loan for borrower after looking at his credit rating 3. Formal application for loan by borrower 4. Originator transfers the loan to the subsidiary of an investment banking firm ( Seller) 5. Seller(Investment bank) collects a pool of loans and call it as SPE/SIV/SPV. Off balance sheet instrument 6. SPV can be a corporation, partnership or limited liability company. Most often a Trust. It has nothing else except mortgage loans 7. Underwriter purchases all the securities (derivative income streams) 8. In designing SPV and its tranches underwriter works with credit rating agencies 9. Underwriter then sells the securities to the investors 10. High rated tranches might be guaranteed by a 3rd party insurance company 11. Seller also arranges to sell the rights to service the loan pool to a company or sometimes Originator takes these rights 12. MERS – document custodian. Company to keep track of mountains of paper work on loans in the pool. At National level. Source : Subprime Mortgage Market Turmoil , testimony by Christopher L. Peterson
  • 11.
  • 12.
  • 13. Top 10 Largest Bank Failures Sept. 25 failure of Washington Mutual was bar far the largest in US history. Sold to JP Morgan Chase by govt. for $1.9B plus WaMu’s loans and deposits Resurgent bank failures (13 in 2008 as of Oct. 12) are symptomatic of weakness in the financial system. FDIC says many more may fail Failure of Indy Mac was the 4 th largest in history
  • 14. Sub prime losses by Big Banks Worldwide :US$ 586.2 billion and still counting Source: Financial Times
  • 15.
  • 16. Investments devalued across the Globe Source: BBC News, http://news.bbc.co.uk/2/hi/talking_point/7644574.stm
  • 17. Sub prime impact across globe Source: Financial Times
  • 18. Impact of Financial crisis-felt across the globe Source: Reuters, http://www.reuters.com/news/globalcoverage/creditcrisis
  • 19.
  • 20. It is the right time to buy a house in U.S rather than buying a house in Hyderabad. Thank ”u”