Release Date:- 2009-11-01
Availability:- In Stock
Kind:- ebook
CASE DESCRIPTION The case provides two levels of understanding the subprime mortgage crisis. The first level is from the perspective of home buyers worried about being closed out of an overheated housing market. The second level is from the perspective of investment firms trading exotic securities created by investment banks out of the subprime mortgages. The case could be used with undergraduate or graduate financial management students as well as in case courses. The calculations are straightforward and there are ethical issues. The case could be used in a business ethics course with the calculations provided the discussion ensuing would be on the home buyers' decisions, the mortgage lenders behavior, the investment bank's fiduciary responsibilities, and the moral hazards of any proposed legislation to remedy the crisis.
