Ten years ago was a dark time for finance and the global economy. The financial crisis did provide CFO with a rich vein of story angles, stemming from — just for starters — the bankruptcy of Lehman Brothers, a liquidity crisis for credit default swaps enthusiast AIG, and the subprime mortgage crisis. Test your memory of that stormy period in 2008 here.
1. How much did Bank of America agree to pay to acquire Merrill Lynch?
A. $36 billion
B. $81 billion
C. $24 billion
D. $50 billion
2. Which of the following financial services firms did NOT become a bank holding company in 2008?
D. American Express
3. How much was the Federal Reserve Bank of New York authorized to lend to AIG?
A. $85 billion
B. $62 billion
C. $97 billion
D. $112 billion
4. What was the U.S. unemployment rate at the end of the first week of September 2008?
5. Which group was the target of temporary restrictions issued by the SEC on Sept. 18?
A. Ratings agencies
B. Investment bankers
C. Mortgage lenders
D. Short sellers
6. Which country closed its stock markets for two days in the middle of the crisis?
A. United Kingdom
7. Which eurozone country became, on Sept. 25, the first to officially fall into recession?
8. How much did JPMorgan Chase agree on Sept. 26 to pay for savings-and-loan Washington Mutual, which had been seized by federal regulators?
A. $4.6 billion
B. $5.9 billion
C. $2.4 billion
D. $1.9 billion
Answers: 1-D; 2-C; 3-A; 4-A; 5-D; 6-C; 7-D; 8-D