Subprime mortgages and derivatives, bailout of FNMA, Freddie Mac and AIG

Writea 350- to 700-word analysis the following corrective action taken by the Federal Reserve as a result of the crisis:

• Purchase of toxic assets from financial institutions

Address the following in your analysis:

• Actions taken by the Federal Reserve to mitigate the crisis
• How the corrective action helped to restore stability to the financial system
• How the corrective action should prevent recurrence of a similar crisis