Financial Crisis of 2008

How Bank of CSUN Can Adjust For The Future

By Abdullatef, Daniel, Liezel, and Alberto

What was the Financial Crisis of 2008?

Worst economic event since Great Depression.
Lead to the Great Recession (2008-2012)
Major Causes
o Sub-Prime Mortgages
o Synthetic CDOS

The Big Short

Ethic-Breaking ideas and actions

Sub-Prime Mortgages
o Setting People up to
Fail?
Too big to fail
o Companies no longer
think of the
consequences

Pros of Company Interest

Too Big to Fail
With Great Power Comes Great Responsibility
Economics of Scales (Cheaper Services)

Cons of Company Interest

Diseconomies of Scale
Scale Back = More Unemployment
(More blame on us)

Pros of public interest

accessibility factor :
ATMs, branches, mobile and online tools

Cons of public interest

Checking account fee:
Overdraft Maintenance
Interest rate
harder to get fees waived or good loan rates
negotiated.

What Bernie Thinks of this Issue

-

Wants to put all Wall Street involved in Jail

Break Too Big to Fail system
Against Wall Street Bailout
Rigged by banks to benefit the wealthiest
Americans in this country for the expense of
everyone else

What Trump feels

-Wants to higher tax the rich and close a tax loophole.
-Hedge Funds- getting away with murder.
-Knew (like Sanders), the crisis is a bubble ready to burst.

Dodd-Frank Act of 2010

Improving accountability and transparency

End "Too Big to Fail"
Protect the American taxpayer by ending bailouts
Protect consumers from abusive financial services

Our Solution
Meet in the middle with big companies and the public.

Citations
Comiskey, Michael, and Pawan Madhogarhia. Unraveling
the Financial Crisis of 2008. PS: Political Science and Politics
42.2 (2009): 271275.
Mukunda, Gautam. "What Both Bernie Sanders and Donald
Trump Get Wrong about Wall Street." Washington Post. The
Washington Post, n.d. Web. 07 May 2016.
Smith, Martin. "FRONTLINE." PBS. PBS, n.d. Web. 09 May 2016.
Wheelock, David. "Too Big To Fail: The Pros and Cons of
Breaking Up Big Banks." Too Big To Fail: The Pros and Cons of
Breaking Up Big Banks. Federal Reserve, Oct.-Nov. 2012.
Web. 05 May 2016.