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FAILURE OF THE CONTROL MECHANISMS IN US BANKS DURING THE CRISIS AND SPREAD OF THE FINANCIAL CRISIS INTO THE WORLD THROUGH STRUCTURED PRODUCTS

The result's identifiers

  • Result code in IS VaVaI

    <a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F04274644%3A_____%2F16%3A%230000083" target="_blank" >RIV/04274644:_____/16:#0000083 - isvavai.cz</a>

  • Result on the web

  • DOI - Digital Object Identifier

Alternative languages

  • Result language

    angličtina

  • Original language name

    FAILURE OF THE CONTROL MECHANISMS IN US BANKS DURING THE CRISIS AND SPREAD OF THE FINANCIAL CRISIS INTO THE WORLD THROUGH STRUCTURED PRODUCTS

  • Original language description

    The aim of this paper is to explain the role of structured products, particularly CDOs (Collateralized Debt Obligation) and its modifications to the rise of the international financial crisis since 2008. In that year, a large investment group Lehman Brothers went bankrupt, which rocked the global capital markets, and subsequently a negative sentiment about the quality of loan portfolios was extended, especially of mortgage banks in the US, which by means called moral hazard, increased the value of mortgage loans. The capital guarantee of the largest mortgage banks and insufficient control of federal authorities resulted in the uncontrolled growth of unsecured mortgages and growth of CDO emissions that were linked to these loans. Granted state aid supplies needed liquidity to the banks through emergency programs.

  • Czech name

  • Czech description

Classification

  • Type

    J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

  • CEP classification

    AH - Economics

  • OECD FORD branch

Result continuities

  • Project

  • Continuities

    S - Specificky vyzkum na vysokych skolach

Others

  • Publication year

    2016

  • Confidentiality

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Data specific for result type

  • Name of the periodical

    AD ALTA: Journal of Interdisciplinary Research

  • ISSN

    1804-7890

  • e-ISSN

  • Volume of the periodical

    6

  • Issue of the periodical within the volume

    1

  • Country of publishing house

    CZ - CZECH REPUBLIC

  • Number of pages

    3

  • Pages from-to

    79-81

  • UT code for WoS article

  • EID of the result in the Scopus database