Fin 4303 certification - Study guides, Class notes & Summaries

What role did the credit-rating agencies play leading up to the start of the financial crisis in 2007? Inaccurate ratings provided by credit-rating agencies helped promote risk taking throughout the financial system. Although the FDIC was created to prevent bank failures, its existence encourages banks to take too much risk. The result of the too-big-to-fail policy is that ________ banks will take on ________ risks, making bank failures more likely. large; greater If a financial firm ...

What role did the credit-rating agencies play leading up to the start of the financial crisis in 2007? Inaccurate ratings provided by credit-rating agencies helped promote risk taking throughout the financial system. Although the FDIC was created to prevent bank failures, its existence encourages banks to take too much risk. The result of the too-big-to-fail policy is that ________ banks will take on ________ risks, making bank failures more likely. large; greater If a financial firm ...