Prior to beginning work on this assignment, read An Assessment of TARP Assistance to Financial Institutions, The Role of the Federal Reserve as an International Lender of Last Resort during the 2007-2008 Financial Crisis, Political Economy of the U.S. Financial Crisis 2007-2009 (Links to an external site.) articles, and the Another Quantitative Easing Video (Links to an external site.) video.
For this assignment, you will assume the role of a financial analyst who works at a large U.S. investment bank. You’ve been asked to prepare a report for senior management that highlights how the economy, financial institutions, and financial markets have evolved since the 2007-2009 financial crisis.
- Analyze the health of the economy prior to and during the financial crisis.
- Evaluate the current state of the economy including financial institutions and financial markets.
- Summarize how financial market structure and regulations have changed since the financial crisis. Appraise how these changes have impacted the U.S. economy.
- Evaluate the risks associated with shadow banks, stocks, bonds, derivatives, securitization, rating agencies, subprime mortgages, and over-the-counter trading during the financial crisis.
- Appraise how the various financial intermediaries allocated capital to its most productive uses during and after the financial crisis.
- Assess how the Federal Reserve’s monetary policy mitigated the effects of the crisis on the U.S. economy. Determine if these approaches will continue to be effective in the foreseeable future.
Must be 10 to 12 double-spaced pages in length (not including title and references pages)
Must use at least five (5) scholarly and/or credible resources in addition to the course text.
Requirements: 10-12 pages | .doc file