In 1997, amid Japan’s continuing financial troubles, Prime Minister Ryutaro Hashimoto attempted to restructure the financial sector to make it more transparent and more competitive globally. He hoped that this attempt, dubbed the “Big Bang” after Britain’s financial restructuring a decade earlier, would be successful. But the financial problems, which had apparently subsided, seemed to …
Lind Equipment defaulted on its loan agreements with its senior bank lender in the summer of 2008, just six months after the acquisition. Although the senior bank debt represented only 6% of the capital used in the acquisition and was fully guaranteed, it exercised its right to suspend payments to Lind’s junior lender, who financed …
The note provides background information on the DoddFrank Wall Street Reform and Consumer Protection Act, brief background information on lobbying and lobbying aspects of the finance industry, and JP Morgan Chase on DoddFrank. It is intended as a supplement to “Tip of the Iceberg: JP Morgan Chase and Bear Stearns (A)”, HBS # 309001 to …
As his inauguration approached, President-elect Obama faced a financial sector collapse, a costly bailout, and massive public deficits. Given the recession in the economy, near-zero interest rates, and rising unemployment, Obama had to decide whether and how much a fiscal stimulus should be used to jump-start the economy. To help students understand Obama’s options, the …
This case describes the efforts of Ben Bernanke, Chairman of the Federal Reserve, to improve liquidity in money markets during the subprime mortgage crisis. The case explains the four main new monetary policy tools (or quantitative easing) that the Federal Reserve used between 2007 and 2009: the Term Auction Facility (TAF), the Credit Facility for …
After battling the country’s longest recession since 2008, the UK will grow faster than any other G7 nation in 2014. Analysts wondered whether the return to growth was due to or despite the prime minister’s controversial austerity plan. £ 113bn David Cameron introduced in 2010. Despite the positive economic rebound, British politicians still faced the …
It describes the response of the Mexican authorities and the international community to the “Third World Debt Crisis” that emerged in the forefront of global economic concerns in the early 1980s. It focuses on the respective roles of the private sector, governments (Mexican and foreign), and the international community in handling the crisis.
In late 2007, Hermann Gudmundsson (N1 CEO of the Esso Island and Bilanaust merger) focused on building trust within his organization. By involving employees in the decision-making process, N1 received valuable information for effective business operations. But Gudmundsson had noticed a lack of chemistry between the employees of the two previous companies and thought an …
Provides a vehicle for discussing the problems caused by the Great Depression.
Supplementary case for case W14152.