Panic: The Untold Story of the 2008 Financial Crisis 1. Match the following "Big Three" characters of the story with their respective roles in the financial system of our government at the time of the 2008 financial crisis: 1. Timothy "Tim" a. President George W. Bush nominated him for Secretary of the Treasury in Geitner 2006 2. Henry "Hank" b. Was the Chairman of the Federal Reserve Bank of NY Paulson C. Accept the nomination as Chairman of the Federal Reserve in the wake of 3. Ben Bernanke the 9/11 Terrorist Attacks 2. According to Hank Paulson, 'at some point in history, housing went from being someone's shelter to becoming O a burden O an albatross around their necks O an investment a gamble 3. Which of the following were part of the toxic environment of the housing market in the early 2000's (Select 4 answers): mortgaged backed securities were popular and making investors on Wall Street A LOT of money home buyers would lie on their loans (mortgages) to get bigger houses than they could afford people would buy houses then expect to flip them soon after to make a profit there was a false belief that housing prices would NEVER go down construction materials for houses and gasoline prices were at an all time high the government was charging high interest rates on FHA loans 4. 'The Big Three' (Hank Paulson, Ben Bernanke, and Tim Geitner) were afraid that if the investment bank failed it would take much of the US financial system with it O Morgan Stanley O Citi Group Bear Stearns Goldman Sacs5. Jamie Dimon and his investment bank agreed to buy Bear Stearns and their bad assets as long as the Federal government was willing to subsidize the buy out (give them money to do it). Goldman Sacs O Citi Group O JP Morgan - Chase O Bank of America 6. When the federally backed mortgage institutions and began to fail Hank Paulson and Ben Bernanke asked for an unspecified amount of money ("a bazooka") to bail them out. Goldman Sacs Bear Sterns O Fannie Mae Freddie Mac JP Morgan 7. As Lehman Bros began to fail, the hope was that the British bank would buy them out, but the British government refused to allow it because they didn't want to "import the American cancer into their own economy,' so Lehman Bros failed. O Credit Suisse O Standard Charter O Barclays Bank Royale 8. The insurance giant, _ was given an $85 billion bailout to stay afloat because it insured most of the investment banks on Wall Street and was considered 'too interconnected to them to fail. O Smith Barney O GEICO O Cigna O AIG