Mortage Crisis

Please find out how the mortgage crisis happened in US in 2008. Look into the problems in Bear Stearns,Lehman Brothers,Goldman Sachs,Merrill Lynch, Morgan Stanley and AIG.

1. What is the bailout amount?

2. Who were the top management staffs involved?

3. How much money were they paid as compensation, if any?. How much were they earning as salaries?

4. Their employment background, prior and after the crisis.

STATE YOUR GENERAL OPINION ON THE ISSUES.

1. Lehman Brothers are not bailout by the government, On October 28, 2008, the US Treasury paid Goldman Sachs $10 billion in exchange for Goldman Sachs shares as one of the six large banks initially given funding from TARP intended to unfreeze credit markets, the U.S. government, through the Federal Reserve Bank of New York, rescued Bear Stearns by lending $29 billion to JPMorgan Chase to buy the financially troubled firm, In mid-September 2008, the U.S. government took control of American International Group (AIG), one of the world's largest insurance companies. Private lenders declined to loan money to the financially troubled firm, prompting the federal government to take control of the company and guarantee to loan it up to $85 billion. In October, the federal government gave BofA and Merrill Lynch $25 billion in bailout funds, Fed Bailouts: Morgan Stanley’s $61 Billion Loan

Most of the company’s top executives found lucrative jobs elsewhere on Wall Street. Many went to work for Barclays (BCS), which bought much of Lehman’s U.S. banking business out of bankruptcy. Lehman’s president, Bart McDade, and a top trader, Alex Kirk, founded investment firm River Birch Capital. George Walker, who ran Neuberger Berman, Lehman’s wealth management division, has continued to do so, thriving since the firm became independent. “I certainly don’t think there’s any Lehman hangover on the individuals themselves,” says Robert Wolf, the former chairman and CEO of UBS Americas (UBS).

Fuld is an exception. After the...