As promised in class, here are the Questions and Answers to the trivia session.
1. Who was the CEO at the time of Lehman’s collapse?
2. What does CDS stand for?
3. True or False: Commercial paper usually matures in 270 days or more.
4. Name the 3 possible players in the commercial-paper market.
5. On what date (Month/day/year) did Lehman Brothers announce their bankruptcy?
6. Which company was in danger in failing before Lehman, only to be bought be JP Morgan in a shotgun marriage?
7. About how much did the commercial-paper market drop within a week of Lehman’s collapse?
8. Where did investors flock to after losing confidence in the commercial-paper market?
9. What kind of risk did the collapse of Lehman reveal within the market?
10. What does CDO stand for?
11. Before the collapse and subsequent decline in investor confidence, who was the largest buyer of commercial paper?
12. Name the 2 companies that were mentioned as possible buyers of Lehman Brothers in the weekend before their demise.
13. Lehman was a top 10 counterparty within the CDS market with contracts amounting to how much money?
14. True or False: Lehman Brothers’ 3 main areas of business are investment banking, retail banking, and investment management.
15. What type of portfolio was in so much trouble for Lehman Brothers that it scared away any possible investors?
16. What is the name of the concept that claims shorting Lehman bonds was basically a self-fulfilling prophecy where speculation led to stock price decline which in turn led to Lehman defaulting?
- Dick Fuld
- Credit Default Swap
- False (270 days or LESS)
- Issuers, Investors, Intermediaries
- September 15, 2008
- Bear Stearns
- $500 Billion
- Collateralized Debt Obligation
- Money Markets
- Bank of America, Barclays
- $800 Billion
- False (Capital markets, not retail banking)
- Real-estate portfolio