The effects of transparency in a market on the pecuniary crisis Maastricht University School of personal credit line and economics Maastricht, 23 January 2012 Nicolas MÃ¼nzer, NM; Kevin Leurs, KMM; Max van Zoest, MCJ ID number: i6039536; i6039559; i6042051 Studies: International Business; economics; Econometrics Course code: EBS1508 conference number: 5D Tutors name: C. Bach Writing date: Reflections Paper 1. Introduction Seven hundred trillion dollars, that is the price the Ameri john Senate salaried for the bailout bill on tertiary October 2008. The velocity and magnitude of the pecuniary crisis in 2008 is unique. All this has been triggered by banks and hedge funds, seeking for short-run profits and driven by greed, trading with abstruse derivatives of which an middling citizen has never have grasp of before. High risky mortgage bonds and insurances have been put unneurotic and sold as packages. Oversimplified and improvident the risks of those packages have been valued incorrectly. The mint candy of the so-called credit fail swaps and collateralized debt obligation market exploded. Banks traded these derivatives among from separately one other, leading to an glaucous mesh of toxic assets. The bankruptcy of Lehman Brothers, a US-based investment bank, construct the peak of the financial crisis (Amadeo, 2012).
Months and whitewash geezerhood after the peak, the place setting of the crisis is inestimable. The mesh of toxic assets has to be scanned human race by piece, revealing the complexity of the financial administration. The question arises, how can such a crisis be prevented in the future? Was it a deficiency of transparency, which enabled the growth of such a morbid system? This composing examines the impact of non-transparency on the financial crisis in 2008. With inspection and better of examples of the major banks, it investigates which role the deficiency of transparency played and concluding, if much transparency could prevent a future crisis. 2. Transparency Transparency is a state of mind. It means that a company, institution or...If you want to track down a full essay, company it on our website: Orderessay
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