FRM 10. Anatomy of the Great Financial Crisis of 2007-2009

Learning Objectives

1) Describe the historical background and provide an overview of the 2007-2009 financial crisis.

2) Describe the build-up to the financial crisis and the factors that played an important role.

3) Explain the role of subprime mortgages and collateralized debt obligations (CDOs) in the crisis.

4) Compare the roles of different types of institutions in the financial crisis, including banks, financial intermediaries, mortgage brokers and lenders, and rating agencies.

5) Describe trends in the short-term wholesale funding markets that contributed to the financial crisis, including their impact on systemic risk.

6) Describe responses made by central banks in response to the crisis.