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G-7 FOR MONEY AND BANKING

PRESENTATION
Adnan Hussain 13
Muhammad Nouman 08
Azmatullah 44
Syed Muhammad Hussain 30
Khawaja Muhammad Daim 29
Syed Tashfeen Haider 25
Bilal Ahmad 2019-23 08
Mortgage concept

4000000R 5000000 RS

100000 RS
5%

20 year loan
SOME BASICS CONCEPTS
Subprime lending

Credit default swaps(CDS)

Collateral debit obligation (CDO)

Quantitative easing

Bailout
Reasons of financial crisis
2007-2008
Dot.com bubble bust

In 1990 internet company were evolved


Investor invest money in dot.com companies due low
interest rate
Company spend money in advertisement to collect more
money, no real product were existed
Fed increase the low interest rate to over come the
inflation
REASON OF FINANCIAL CRISIS
2007-2008
Loss monitory policy and interest rate (6.5% ….1%)

Financial deregulation (Glass-Steagall Act 1933, investment


bank, commercial bank, and insurance company separate
bodies was integrated through Gramm Leach Bliley Act 1999

Sub-prime mortgage

Globalization
@adnanhussain-13

investor

Investment

Commercial
EFFECT OF 2007-2008 FINANCIAL
CRISES ON WORLD ECONOMY

Economic recession

Unemployment

Financial instability and default (Lehman Brothers)


HOW FINANCIAL CRISIS 2007-2008 WAS
RECOVERED:

o Government bailout:
a) American International Group (AIG) - AIG received $182
billion in bailout funds.
b) bank of America received $45 billion.
c) Citigroup - Citigroup received $45 billion.
o Monitory policy was changed.

 Decreased
o Regulatory reform.

 Dodd-Frank Act 2010


THANK YOU

@G-7 for money and banking IMS UOP

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