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

D 2016

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

BOCK, Michal and Jaromír TICHÝ

Basic information

Original name

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

Name in Czech

SELHÁNÍ KONTROLNÍHO MECHANISMU V AMERICKÝCH BANKÁCH BĚHEN KRIZE A ROZŠÍŘENÍ FINANČNÍ KRIZE DO SVĚTA SKRZE STRUKTUROVANÉ PRODUKTY

Authors

BOCK, Michal and Jaromír TICHÝ

Edition

Hradec Králové, Sborník konference: Interdisciplinární mezinárodní vědecká konference doktorandů a odborných asistentů QUARE 2016, p. 312-318, 715 pp. 2016

Publisher

MAGNANIMITAS, Hradec Králové

Other information

Language

English

Type of outcome

Stať ve sborníku

Field of Study

50200 5.2 Economics and Business

Country of publisher

Czech Republic

Confidentiality degree

není předmětem státního či obchodního tajemství

Publication form

electronic version available online

Organization unit

University of Finance and Administration

ISBN

978-80-87952-15-3

Keywords (in Czech)

strukturované produkty, role, propojenost kapitálových trhů, CDO, VaR

Keywords in English

structured products; role; interconnectedness of capital markets; CDO; VaR

Abstract

ORIG CZ

V originále

This paper deals with the role of structured products in the development of the international financial crisis since 2008. 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. As a consequence of this state assistance was provided, which supplied the necessary liquidity to the banks through conservation programs

In Czech

Tento příspěvek se zabývá rolí strukturovaných produktů na rozvoji mezinárodní finanční krize od roku 2008. Cílem tohoto příspěvku je vysvětlit roli strukturovaných produktů, zejména CDO a jejich modifikací na růstu mezinárodní finanční krize z roku 2008. V tomto roce velká investiční skupina Lehman Brothers zbankrotovala, což vedlo k rozšíření krize na hypoteční banky v USA. Kapitálové garance největších hypotečních bank a nedostatečná kontrola ze strany federálních autorit vedla k nekontrolovanému růstu nezajištěných hypoték a růstu emisí CDO, které byly spojeny s těmito úvěry. Jako důsledek tohoto byla státem poskytnuta tolik potřebná likvidita bankám skrze programy.

Citovat

BOCK, Michal and Jaromír TICHÝ. FAILURE OF THE CONTROL MECHANISMS IN US BANKS DURING THE CRISIS AND SPREAD OF THE FINANCIAL CRISIS INTO THE WORLD THROUGHT STRUCTURED PRODUCTS (FAILURE OF THE CONTROL MECHANISM IN US BANKS DURING THE CRISIS AND SPREAD OF THE FINANCIAL CRISIS INTO THE WORLD THROUGHT STRUCTURED PRODUCTS). Online. In MAGNANIMITAS, Hradec Králové. Sborník konference: Interdisciplinární mezinárodní vědecká konference doktorandů a odborných asistentů QUARE 2016. Hradec Králové: MAGNANIMITAS, Hradec Králové, 2016, p. 312-318, 715 pp. ISBN 978-80-87952-15-3.

@inproceedings{6056,
   author = {Bock, Michal and Tichý, Jaromír},
   address = {Hradec Králové},
   booktitle = {Sborník konference: Interdisciplinární mezinárodní vědecká konference doktorandů a odborných asistentů QUARE 2016},
   editor = {MAGNANIMITAS, Hradec Králové},
   keywords = {structured products; role; interconnectedness of capital markets; CDO; VaR},
   howpublished = {elektronická verze "online"},
   language = {eng},
   location = {Hradec Králové},
   isbn = {978-80-87952-15-3},
   note = {Dedikováno k SVV VŠFS PRAHA NO 7427 "PREDIKČNÍ SCHOPNOST BANKROTNÍCH MODELŮ V PODMÍNKÁCH ČESKÝCH FIREM"},
   pages = {312-318},
   publisher = {MAGNANIMITAS, Hradec Králové},
   title = {FAILURE OF THE CONTROL MECHANISMS IN US BANKS DURING THE CRISIS AND SPREAD OF THE FINANCIAL CRISIS INTO THE WORLD THROUGHT STRUCTURED PRODUCTS},
   year = {2016}
}

TY  - JOUR
ID  - 6056
AU  - Bock, Michal - Tichý, Jaromír
PY  - 2016
TI  - FAILURE OF THE CONTROL MECHANISMS IN US BANKS DURING THE CRISIS AND SPREAD OF THE FINANCIAL CRISIS INTO THE WORLD THROUGHT STRUCTURED PRODUCTS
PB  - MAGNANIMITAS, Hradec Králové
CY  - Hradec Králové
SN  - 9788087952153
N1  - Dedikováno k SVV VŠFS PRAHA NO 7427 "PREDIKČNÍ SCHOPNOST BANKROTNÍCH MODELŮ V PODMÍNKÁCH ČESKÝCH FIREM"
KW  - structured products
KW  - role
KW  - interconnectedness of capital markets
KW  - CDO
KW  - VaR
N2  - This paper deals with the role of structured products in the development of the international financial crisis since 2008. 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. As a consequence of this state assistance was provided, which supplied the necessary liquidity to the banks through conservation programs
ER  -

BOCK, Michal and Jaromír TICHÝ. FAILURE OF THE CONTROL MECHANISMS IN US BANKS DURING THE CRISIS AND SPREAD OF THE FINANCIAL CRISIS INTO THE WORLD THROUGHT STRUCTURED PRODUCTS (FAILURE OF THE CONTROL MECHANISM IN US BANKS DURING THE CRISIS AND SPREAD OF THE FINANCIAL CRISIS INTO THE WORLD THROUGHT STRUCTURED PRODUCTS). Online. In MAGNANIMITAS, Hradec Králové. \textit{Sborník konference: Interdisciplinární mezinárodní vědecká konference doktorandů a odborných asistentů QUARE 2016}. Hradec Králové: MAGNANIMITAS, Hradec Králové, 2016, p.~312-318, 715 pp. ISBN~978-80-87952-15-3.

Detailed Information on Publication Record