Sentences with phrase «subprime crisis when»

The high risks incurred by hedge funds came to light at the start of subprime crisis when two Bear Sterns hedge funds, which were heavily invested in sub-prime derivatives, were almost wiped out on the back of plummeting assets.

Not exact matches

The Oracle of Omaha first got involved with the Charlotte - based banking giant back in 2011, when investors began questioning whether Bank of America could deal with legal fees and liabilities stemming from the subprime mortgage crisis.

From the low - level shysters who peddled dodgy mortgages to the Wall Street investors who packaged them into securities and the investors who bought them, everyone involved in the subprime debacle always seems somewhat put - off when reminded that at root this was a crisis about actual people and their actual homes.

The U.S. subprime crisis happened when household and non-financial corporate credit was below 140 % of GDP.

When the subprime mortgage crisis hit in May, Delvinia prepared for the worst.

Recall that Gary Gorton provides evidence that many of the CDOs and MBS were not subprime, but when the market panicked a liquidity crisis became a solvency crisis.

John Paulson rose to legend - status when he earned a reported $ 4 billion betting against subprime mortgages during the financial crisis.

While the subprime mortgage crisis remains the epitome of what occurs when greed and corruption go unchecked, a growing number of experts and observers are warning that a new economic scandal is taking shape in the United States.

Many civil rights leaders and teachers called for leniency, and some wondered why black teachers in low - income neighborhoods faced racketeering charges when white Wall Street workers who were implicated in the subprime mortgage crisis did not.

From lenders to buyers to hedge funds, when it comes to the subprime mortgage crisis, everyone had blood on their hands.

A similar pace of increases between 2003 and 2006 most certainly did cool the economy, and the rise in short - term rates (and the effects of Fed policy on funding costs in global markets) may have precipitated the early days of the subprime ARM crisis, when rates were being adjusted sharply upward, causing payment shock for borrowers.

When the subprime mortgage crisis reached its peak in the fall of 2008, the federal government took steps to help stabilize the American housing market.

There are times when that spread becomes very wide or very thin — a reflection of world events, such as the subprime mortgage crisis of 2008/2009 and the recent catastrophic situation that has befallen Japan.

That they are limping along should be no comfort, because those that they presently rely on for financing will eventually have to give up, much as those snatching up bargains in subprime had to give up when the financial crisis hit.

There are times when that spread becomes very wide or very thin, such as the subprime mortgage crisis of 2008/2009.

[126][130][131] During a 2008 House Committee on Oversight and Government Reform hearing on the role of Fannie Mae and Freddie Mac in the financial crisis, including in relation to the Community Reinvestment Act, when asked if the CRA provided the «fuel» for increasing subprime loans, former Fannie Mae CEO Franklin Raines said it might have been a catalyst encouraging bad behavior, but it was difficult to know.

In this week's Weekend Read: Three simple steps to take when you inevitably blow your budget, watching out for the brand new subprime crisis, and what makes Instagram so pleasant (besides all the beach pics).

This was related to the financial crisis of 2008 because hedge funds and others allegedly helped produce bad subprime mortgages on purpose so that they could buy insurance on them, and then profit when the home buyers failed to make payments.

When risk is miscalculated it can lead to serious financial turmoil on the largest of scales, such as the subprime mortgage crisis of 2007 - 9.