Power, Money and Wall Street Cog Group 3

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MONEY, POWER  AND WALLSTREET

PRESENTED BY- GROUP 3

SAHIL WADHWA 221123

SHUCHI SINGH 221141

SIDDHARTH NAHATA 221144

SIMARNEET KAUR WAHI 221145

VIDIT GARG 221164

HEENA GOEL 221054

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SUMMARY

It all stat!" at a #t$% &!!'!(" !s)t #( *)+a Rat)(, -L

#( 1..4/ A ) ) %)( a('!s ) 7M)a(,&!! +!l!at#( t8! s++!ss ) t8! +)a(%9s "!#:at#:!

 )t)l#)s/ Y)(, :!% #8t #("s, at%#( a #t a("

!!t#( #( sall +)(!!(+! ))s 8at+8!" a (!& #"!a/

T8!s! %)( !)l! &!! stl#( t8 t8! a!;)l"

 )l! ) 8)& t) a(a! R#s'/ Ot ) t8!s!

"#s+ss#)(s +a! t8! #"!a ) C!"#t D!alt S&as, a

"!#:at#:! t8at !(s!" a l)a( aa#(st "!alt, a ():!l#"!a/ U t) t8#s )#(t "!#:at#:!s 8a" al&a%s #(:)l:!"

s!+lat#)( a)t t8! t! :al! ) s)! ta(#l!

+))"#t% l#'! +)(, +)al, ) !!/

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CDS

A +!"#t "!alt s&a

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SUMMARY

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SUMMARY

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T8! !slt &as a( !?l)s#)( #( C!"#t D!alt S&as !%)("

+)!+#al +!"#t #s' #(t) +)(s! +!"#t #s' t8

!8as#s )( 8)! )ta!s/ I( la+!s t8 a#"l% )(

8)s#( a'!ts, l#'! G!)#a, !"at)% l!("#( a+t#+!s!!!"/ I( 2002, G):!()  R)% *a(!s a(a!" t) ass

l!#slat#)( tt#( l##ts )( a!ss#:! )ta! l!("#(

 a+t#+!s/ T8! )ta! l)% 8!a:#l% ("!" 8#s )l#t#+al

))(!(ts a(" )t t8! la& ):!t(!" &8!( *a(!s a#l!" t)

( !;!l!+t#)(/

H)! sal!s s'%)+'!t!"/ S&as !& !?)(!(t#all%/

I(:!st)s +)l" ()& !t )( "!#:at#:!s as!" ()t )(

)ta!s t8!s!l:!s t )( )t8! "!#:at#:!s/ D!#:at#:!s

)( "!#:at#:!s )( "!#:at#:!s/

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S#! )ta!s !" t8! )( 8(! ) S&as a("

CDOs/

 C)("#t#)(s !+a! s+8 t8at (!#t8! t8! a('!s () t8!l!#slat)s ) t8! +)(t#!s #(:)l:!" !:!( ("!st))" 8)&

t8!s! s&as #( +)((+t#)( t8 s#! l!("#( &)'!"/

T8! -)(tl#(! +)!s)("!(t as'!" T!# D8)( )#(tla('

&8% "#" !:!%)(! '!! )#( &8!( #t !+a! +l!a t) 8! t8at

7M)a( s8)l" !"+! #ts !?)s! t) S&as a(" CDOs/

S8! !l#!" FUt8!I !a(l))':!% s#l%, t8!!

a! +!ta#(l% s)! #(:!st)s, s)! a('s, s)! ))&!s

&8) a! a #t !!"#! t8a( t8!% s8)l" !/

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SU*7RIME LENDING

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W8!( #t !+a! )! ):#)s t8at t8! "!#:at#:!s a'!t

&as (!a#( a +l#a?, G)l"a( Sa+8s t))' a at#+lal%

a!ss#:! )s#t#)( G)l"a( Sa+8s a"! )(!% ) ) )t8!

 a('s t8at 8a" #(:!st!" #( t8!# CDOs/ *a('s #( G!a(% !+a! t8! #st t) a#l/

*% 200, t8#(s &!! )#( t!#l% &)( t, "! t) t8!

la+' ) l#+ "#s+l)s!, al)st () )(! '(!& #t %!t/S""!(l%, ass#:! (!s ) )ta!s &!! #( "!alt a("

t8)s! 8)l"#( S&as 8a" t) a% /

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FINANCIAL CRISIS

 T8! #(a(+#al +#s#s &as t#!!" % a +)l!? #(t!la% ) )l#+#!s t8at !(+)a!" 8)! )&(!s8#, ):#"#( !as#! a++!ss t)

l)a(s )

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CAUSES

 Widespread failures in financial regulation and

supervisionDramatic failures of corporate governance and risk

management at many systemically important

financial institutions

Combination of excessive borrowing, riskyinvestments

Lack of transparency" by financial institutions,

Ill preparation and inconsistent action by government

that "added to the uncertainty and panic Systemic breakdown in accountability and ethics

Deregulation of over-the-counter derivatives

especially credit default swaps.

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