Financial world

agapeistheword's version from 2015-05-17 16:56

Inside Job

Question Answer
US Big Four banksJPMorgan Chase, Bank of America, Citigroup, Wells Fargo
DeregulationEliminating government checks and controls over economic and financial sectors, usually enacted to create more competition.
SECSecurities and Exchange Commission; it holds primary responsibility for enforcing the federal securities laws, proposing securities rules, and regulating the securities industry, the nation's stock and options exchanges, and other activities and organizations, including the electronic securities markets in the United States.
Gramm–Leach–Bliley Act (GLBA)Also known as the Financial Services Modernization Act of 1999. Commercial banks, investment banks, securities firms, and insurance companies were allowed to consolidate. Furthermore, it failed to give to the SEC or any other financial regulatory agency the authority to regulate large investment bank holding companies. The legislation was signed into law by President Bill Clinton.
DerivativeIn finance, a derivative is a contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and is often called the "underlying". Derivatives can be used for a number of purposes, including insuring against price movements (hedging), increasing exposure to price movements for speculation or getting access to otherwise hard-to-trade assets or markets. Some of the more common derivatives include forwards, futures, options, swaps, and variations of these such as collateralized debt obligations, credit default swaps, and mortgage-backed securities. Most derivatives are traded over-the-counter (off-exchange) (OTC derivatives) or on an exchange such as the Chicago Mercantile Exchange, while most insurance contracts have developed into a separate industry. Derivatives are one of the three main categories of financial instruments, the other two being stocks (i.e., equities or shares) and debt (i.e., bonds and mortgages).
Chair of the Commodity Futures Trading Commission (CFTC) 1996-1999Brooksley Born; during her tenure on the CFTC, Born lobbied Congress and the President to give the CFTC oversight of off-exchange markets for derivatives in addition to its role with respect to exchange-traded derivatives, but her warnings were ignored or dismissed, and her calls for reform resisted by other regulators. Born resigned as chairperson on June 1, 1999, shortly after Congress passed legislation prohibiting her agency from regulating derivatives.
Commodity Futures Modernization Act of 2000 (CFMA)A United States federal legislation which deregulated over-the-counter (OTC) derivatives, specifically futures contracts. The law allows "sophisticated parties" to trade the contracts without scrutiny under the Commodity Exchange Act of 1936. Instead, trading activity in these contracts must follow general safety and soundness standards. It was signed into law on December 21, 2000 by President Bill Clinton.
CDOCollateralized debt obligation
The Bubble (2001-2007)- Boom in housing; - Buy more loans and create more CDOs
Ponzi schemeA fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent.
Chair of the Federal Reserve 1987-2006Alan Greenspan; the easy-money policies of the Fed during Greenspan's tenure have been suggested to be a leading cause of the subprime mortgage crisis, which occurred within months of his departure from the Fed.
AIGFPAIG Financial Products Corporation; The collapse of AIG Financial Products is considered to have played a pivotal role in the global financial crisis of 2008–2009. In the Spring of 2008 AIGFP suffered enormous loses from credit default swaps that it issued and traded. When these credit default swaps were issued in years prior the management of AIGFP believed they would only have to pay out very few, if any of the swaps. However as the financial crisis worsened during early 2008 many companies began to default on their debt, forcing AIGFP to assume losses greater than what was ever anticipated. The losses at AIGFP caused credit agencies to downgrade the credit rating of the entire AIG corporation in September 2008. The resulting liquidity crisis essentially bankrupted all of AIG. Many believed that AIG was too big to fail and that an AIG bankruptcy could cause an already fragile financial system to collapse, prompting the Federal Reserve Bank to extend an $85 billion line of credit to AIG. As a result the Federal Reserve was issued a stock warrant for 79.9% of the equity in AIG, effectively nationalizing the world's largest insurer. Shortly after, then treasury secretary, Henry Paulson announced the treasury's desire to break up and liquidate most of AIG. The company has since been selling off many of its subsidiaries in order to raise the cash necessary to pay back the Federal Reserve. AIG is currently in the process of closing AIGFP.
Joseph J. "Joe" CassanoAn American insurance executive who was an officer at AIG Financial Products from the division's founding in 1987 until his resignation in February 2008. Cassano is considered a key figure in the Late-2000s financial crisis.
IMF Chief Economist 2003-2007Raghuram Rajan
Final Chairman and Chief Executive Officer of Lehman BrothersRichard Fuld
Henry "Hank" PaulsonAmerican banker who served as the 74th United States Secretary of the Treasury. He had served as the Chairman and Chief Executive Officer of Goldman Sachs.
Big Three (rating agencies)Standard&Poor's (S&P), Moody's, Fitch Group
Chair of the Federal Reserve 2006-2014Ben Bernanke; during his tenure as chairman, Bernanke oversaw the Federal Reserve's response to the late-2000s financial crisis.


Question Answer
The last and the incumbent Chair of the Federal ReserveBen Bernanke, Janet Yellen
UK organisation for statisticsOffice for National Statistics
Italian organisation for statisticsISTAT
E.U. organisation for statisticsEUROSTAT
ISCOIstituto per lo studio della congiuntura
CENSISCentro studi investimenti sociali
OECDOrganisation for Economic Cooperation and Development
Italian minister former deputy director of the OECDPier Carlo Padoan
Italian Minister of Economy and FinancesPier Carlo Padoan
Italian Minister of Economic DevelopmentFederica Guidi
Italian Minister of the InteriorAngelino Alfano
Italian Minister of Labor and Social PoliciesGiuliano Poletti
ECBEuropean Central Bank, based in Frankfurt
Governor of the ECBMario Draghi
Former Governor of the ECBJean-Claude Trichet
Governor of the Bank of ItalyIgnazio Visco
Former Governor of the Bank of ItalyMario Draghi
Governor of the Bank of EnglandMark Carney
TUCTrades Union Congress
CBIConfederation of British Industry
Credit crunchA credit shortage
BotBuono ordinario del Tesoro
BtpBuono del Tesoro poliennale
Biggest mortgage lender in the worldFannie Mae
Big Four AuditorsKPMG, Deloitte, Ernst&Young, PricewaterhouseCoopers(PwC)
IMFInternational Monetary Fund, headquartered in Washington
Managing Director(MD) of the IMFChristine Lagarde
AIGAmerican International Group, bailed out by the Federal Reserve in 2008
Fourth largest US investment bank that declared bankruptcy in 2008Lehman Brothers
British bank that was supposed to acquire Lehman Brothers in 2008Barclays
ILOInternational Labour Organisation (part of the United Nations)
How many Federal Reserve Districts are there?12
US Secretary of the TreasuryJacob Lew
EMUEconomic and Monetary Union
Three major US investment banksGoldman Sachs, Merrill Lynch, Morgan Stanley
The British bank there was a run on in 2007 and which was subsequently nationalised as a bailoutNorthern Rock
Why were some house loans considered predatory?They were given even if the borrower couldn't pay them pack
British Chancellor of the ExchequerGeorge Osborne
Tax authorities in Italy, Britain and the USAgenzia delle Entrate, HM Revenue and Customs (HMRC), Internal Revenue Service (IRS)
Barclays didn't acquire Lehman Brothers because of...a lack of time to acquire the necessary shareholder approval
British Cabinet Minister responsible for the Department of Business and InnovationSajid Javid
2nd largest bank in the world (1st in Europe) allegedly involved in money-laundering and tax avoidance scandalsHSBC
EU Director-General of Economic and Financial AffairsMarco Buti
EU Commissioner for Economic and Monetary AffairsJyrki Katainen
Rate of interest at which large European banks lend each other eurosEuribor
In Britain, to obtain a mortgage you would normally apply to aBuilding Society
What is the rate of interest commonly called, especially in North America?Prime rate
Two emeriging economies among the top ten stock exchangesChina, Brazil
IrpefImposta sul reddito delle persone fisiche; US and UK equivalent: Income tax
BRICSBrazil, Russia, India, China, South Africa
MINTMexico, Indonesia, Nigeria, Turkey
Borsa Italiana headquartersPiazza Affari
NYSE headquartersWall Street
LSE headquartersPaternoster Square
Most important stock exchange in AsiaTokyo Stock Exchange
Asia stock exchanges in the top 6 world rankingTokyo, Shanghai, Hong Kong
Most important stock exchange in the worldNYSE
The National Stock Exchange of India is located inMumbai
US and UK equivalents of IvaSales tax, Vat
ContribuenteTax payer
Esente tasseTax exempt
UK's Chief Secretary of the TreasuryGreg Hands
British bank that received a $46bn Government bailout between 2008 and 2009RBS
The US gold bullion depository is inFort Knox