William Hurt
Henry Paulson
Search results
Jun 19, 2011 · The 2-Minute Version Of "Too Big To Fail". Courtney Comstock and Thornton McEnery. Jun 19, 2011, 8:37 AM PDT. HBO's movie version of Andrew Ross Sorkin's bestseller "Too Big Too Fail" brought some ...
- Foreward
- Film Summary
- Financial Concepts from The Too Big to Fail Film
- Key Insights For Investors
- Relevance to The Simtrade Certificate
- Famous Quote from The Too Big to Fail Film
- Related Posts on The Simtrade Blog
- About The Author
A pervasive moral stigma follows the financial sector, which has a dogged reputation for unethical and illegal behaviour. However, the ethical lapses often associated with finance are not always intentional. Instead, a contributing factor is that the teaching of finance and other business disciplines presents the challenge of linking theories and c...
“Too Big to Fail” gives a behind the scenes look at the conversations between major players during the 2008 financial crisis from March to mid-October. In 2008, Lehman Brothers were on the verge of collapse and its CEO Richard S. Fuld Jr. blamed the declining share price on short sellers, refusing to recognize his bank’s weaknesses. Instead, he sou...
Too Big to Fail
The name of this film is a financial term referring to institutions which are so large and essential to the functioning of the economy that they cannot be allowed to collapse, no matter the cost to the taxpayer. This was the logic behind the $182 billion bailout the US government provided to AIG, for example, along with the relief funds directed to titans like JPMorgan Chase, Citigroup, and the Big Three automotive companies.
Moral hazard
Moral hazard is a term used to describe how if a party is protected from risk, they will increase their risk tolerance and act less cautiously. In the context of banking, if the leaders of major banks feel confident that they are too big to fail – that is, that the government will bail them out – they will make increasingly risky decisions with the confidence that taxpayer dollars will rescue them if their bets go bust.
Bear Stearns
One of the first banks to fail, Bear Sterns’ hedge funds had accumulated over $20 billion in collateralised debt obligations (CDOs) and exposure to other toxic assets. In March 2008, due to the subprime mortgage crisis, Moody’s downgraded Bear’s MBS to Grades B and C (junk bond levels) and triggered a bank run leaving Bear with only $3.5 billion in cash. As Bear relied on repurchase agreements (short-term loans) – meaning it traded its securities to other banks for cash – Bear imploded when o...
Banking reform
Major changes were made to prevent another financial crisis, including introducing stricter capital requirements and ensuring banks are less interconnected or vulnerable to contagion. However, some familiar risks are creeping back, and new ones have emerged as global debt continues to grow – for many countries, the combination of large debts in foreign currencies and weakening local currencies is becoming harder to sustain.
Significance of politics
A key takeaway is the intertwined relationship between politics and finance. Moral hazard asserts that ties between bankers and politicians create dangerous incentives for both parties and indicates the importance of observing not just numbers in our market research, but also non-quantifiable factors which influence expectations.
Learn from the Past
Note that “too big to fail” is a phrase still used today in finance and big business. For example, “Is Facebook too big to fail?” As well, while significant progress has been made to strengthen financial systems internationally, the biggest banks are most likely still too big to fail. It’s useful to be aware of this potential risk to an economy when considering the roles that massive companies and institutions play in our society. Economists will always speculate that we may be “overdue” for...
SimTrade is your introduction to the global financial market; through a combination of theory and simulations, you learn to develop your confidence in your decision making and critical thinking skills. The course teaches you how to analyse the impact of events on expectations and stock prices, eventually teaching you how to build a position and mak...
Paul Giamatti: “I spent my entire academic career studying the Great Depression. The depression may have started because of a stock market crash, but what hit the general economy was a disruption of credit. Average citizens unable to borrow money, to do anything. To buy a home, start a business, stock their shelves.”
All posts about Movies and documentaries Akshit GUPTA The bankruptcy of Lehman Brothers (2008) Akshit GUPTA Analysis of the Margin Call movie Marie POFF Film analysis: The Big Short
Article written in November 2020 by Marie POFF(ESSEC Business School, Global Bachelor of Business Administration, 2020).
Summaries. Chronicles the financial meltdown of 2008 and centers on Treasury Secretary Henry Paulson. A close look behind the scenes, between late March and mid-October, 2008: we follow Richard Fuld's benighted attempt to save Lehman Brothers; conversations among Hank Paulson (the Secretary of the Treasury), Ben Bernanke (chair of the Federal ...
May 23, 2011 · In that time, there have been an almost countless number of books about the financial crisis, about who did what to whom. One of them was Andrew Ross Sorkin’s page-turner, Too Big To Fail, which ...
Too Big to Fail wasn't just the infamous phrase we heard a lot during the economic crash of 2008. It is also a 2011 HBO television movie directed by Curtis Hanson that is a dramatization of New York Times reporter Andrew Sorkin's account of the events that transpired from July 2008 till October 2008 when the decision to bailout all major banks ...
Bottom Line: Too Big to Fail summarizes the 2008 financial collapse and the subsequent bank bailout in a way that is entertaining and makes a complex topic accessible to a mass audience. Because of its conception, the film is limited in what it presents and Too Big to Fail would be best seen in companion with the documentary Inside Job .
People also ask
Is there a movie version of 'too big too fail'?
What is 'too big to fail' based on?
Who wrote 'too big to fail'?
Is 'too big to fail' released in India?
A decade later, it's worth watching some films and shows about the financial crisis of 07-08 and the resulting recession. Well-acted and well-written, Too Big to Fail nicely retells the specific circumstances around the powerful people (well, mostly men) whose decisions in the darkest hours shaped the global economy for years afterwards.
