William Hurt
Henry Paulson
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Jun 19, 2011 · We've put together our favorite lines from the movie in approximate chronological order to give you a fast play-by-play of the film and its tale of the 2008 financial crisis. Photo courtesy of...
- 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 · Too Big To Fail: The story behind HBO’s movie. Marketplace Staff May 23, 2011. Hosted by Kai Ryssdal. Get the Podcast. Apple. Spotify. Amazon Music. Stitcher. RSS. Kai Ryssdal: It’s...
Too Big to Fail: Directed by Curtis Hanson. With James Woods, John Heard, William Hurt, Erin Dilly. Chronicles the financial meltdown of 2008 and centers on Treasury Secretary Henry Paulson.
- (18.6K)
- Curtis Hanson
- TV-MA
- James Woods, John Heard, William Hurt
Directed by: Curtis Hanson. Premise: Based on the nonfiction book by Andrew Ross Sorkin. A drama about the 2008 financial meltdown. Treasury Secretary Hank Paulson (William Hurt) attempts to stave off an economic collapse while negotiating with congress and the major investment banks.
May 24, 2011 · 'Too Big To Fail': Dull, Confusing and Absolutely Worth Your Time. The reviews for HBO's adaptation of Andrew Ross Sorkin's bestseller are in. By Ray Gustini. May 24,...
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