The Financial Crisis of 2007–2009: The Road to Systemic Risk

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017

Abstract

This case invites students to evaluate, based on given materials, the causes, consequences, and potential resolutions of the financial crisis of 2007–2009. The premise of a business professor preparing a slide presentation dramatizes an analysis of the financial crisis. Reviewing his data, much of it in graph form, the professor ponders the central role of banks and the impact of risk management, leverage, and incentives. His main thesis is that the fundamental issue surrounding this crisis was the misjudgment of the risks taken, with the result that risk management failed to do its job of curtailing and managing risk as expected.

Keywords

Citation

Allayannis, G. (2017), "The Financial Crisis of 2007–2009: The Road to Systemic Risk", Darden Business Publishing Cases. https://doi.org/10.1108/case.darden.2016.000299

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Publisher

:

University of Virginia Darden School Foundation

Copyright © 2009 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.

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