Detailed Information on Publication Record
2016
FAILURE OF THE CONTROL MECHANISMS IN US BANKS DURING THE CRISIS AND SPREAD OF THE FINANCIAL CRISIS INTO THE WORLD THROUGH STRUCTURED PRODUCTS
BOCK, Michal and Jaromír TICHÝBasic information
Original name
FAILURE OF THE CONTROL MECHANISMS IN US BANKS DURING THE CRISIS AND SPREAD OF THE FINANCIAL CRISIS INTO THE WORLD THROUGH STRUCTURED PRODUCTS
Authors
BOCK, Michal (203 Czech Republic, belonging to the institution) and Jaromír TICHÝ (203 Czech Republic, belonging to the institution)
Edition
AD ALTA: Journal of Interdisciplinary Research, 2016, 1804-7890
Other information
Language
English
Type of outcome
Článek v odborném periodiku
Field of Study
50200 5.2 Economics and Business
Country of publisher
Czech Republic
Confidentiality degree
není předmětem státního či obchodního tajemství
References:
RIV identification code
RIV/04274644:_____/16:#0000083
Organization unit
University of Finance and Administration
Keywords (in Czech)
Strukturovaný produkt, VaR, CDO
Keywords in English
structured product; role; interconnectedness of capital markets; CDO; VAR
Tags
Změněno: 29/3/2017 12:26, Ing. Dominika Moravcová
Abstract
V originále
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.