dangermouse77/FromAnswerToQuestion-SQuADplusTriviaQA

answer stringlengths 1 239 ⌀	question stringlengths 1 25.7k
over 80%	During 2007, what was the percent of defective mortgages not underwritten to Citi's standards?
Clayton Holdings	Who was the largest residential loan due diligence and securitization surveillance company?
54%	According to Clayton Holdings, how many mortgages issued from January 2006 to June 2007 met underwriting standards?
23	How many investment and commercial banks were included in Clayton Holdings' analysis of January 2006 to June 2007 loans?
28%	Per Clayton's analysis of loans issued from January 2006 to June 2007, what percent of loans did not meet minimal standards of any issuer?
900,000	How many mortgage loans did Clayton Holdings review in their analysis?
Predatory lending	What is the name for lending that entices borrowers to enter into unsafe secured loans?
Countrywide Financial	What company used a classic bait-and-switch method by advertising low interest rates?
adjustable rate mortgage (ARM)	Which type loan would the consumer be put into instead of the 1% or 1.5% interest rate loan as advertised?
negative amortization	What was created when the interest charged was greater than the amount of interest paid?
classic bait-and-switch	What type predatory lending method did Countrywide Financial use?
California Attorney General Jerry Brown	Who sued Countrywide for unfair business practices and false advertising?
adjustable rate mortgages (ARMs)	What type mortgages allowed homeowners to make interest-only payments?
disappeared	What happened to home equity when housing prices decreased?
Office of Thrift Supervision	Who made the decision to seize Countrywide after their financial condition deteriorated?
weak credit	What type credit did borrowers obtaining mortgages from Countrywide have?
Paul Krugman	What economist believed that regulations did not keep up with financial innovation?
Timothy Geithner	Who was the U.S. Treasury Secretary dealing with the aftermath of the financial crisis of 2007?
OECD	Which group's study suggested that Basel accords encourage unconventional business practices?
regulatory framework	It has been argued that what did not keep up with financial innovation?
Basel	What accords possibly contributed to or reinforced the financial crisis?
became highly leveraged	What did financial institutions do prior to the crisis?
complex	What type financial instruments are off-balance sheet securitization and derivatives?
government	Who bailed out financial institutions?
bankruptcy	Which option was nearly impossible for financial institutions to reorganize under?
complex financial instruments	What are the type financial instruments that were difficult for creditors and regulators to monitor?
five	How many U.S. investment banks significantly increased their financial leverage from 2004 to 2007?
financial shock	U.S. investment banks Increased their financial leverage and also increased their vulnerability to what?
capital requirements	Changes in what intended to keep U.S. banks competitive with their European counterparts?
over $4.1 trillion	How much debt did the top five U.S. investment banks report in fiscal year 2007?
Lehman Brothers	What financial institution went bankrupt and was liquidated in 2007?
saving more during adverse economic conditions	What is an example of something that can be detrimental if too many individuals pursue the same behavior?
paradox of thrift	What is it called when too many consumers attempt to save or pay down debt at the same time?
can cause or deepen a recession	What will happen if too many consumers save or pay down debt simultaneously?
Hyman Minsky	Who is the economist who described a "paradox of deleveraging"?
their assets	Financial institutions cannot all de-leverage simultaneously without a decline in the value of this?
Janet Yellen	Who was the U.S. Federal Reserve vice-chair in April 2009?
we were in a recession	What happened soon after the massive credit crunch hit?
recession	What deepened the credit crunch when demand and employment fell?
cancelling planned investments	What was one of the actions businesses took to preserve cash?
balance sheet deleveraging	What occurred in nearly every corner of the economy after the financial crisis of 2007?
financial innovation	What term refers to the ongoing development of financial products?
adjustable-rate mortgage	What is an example of financial innovation pertinent to the financial crisis?
CDS	What is the abbreviation for a form of credit insurance called credit default swaps?
mortgage-backed securities (MBS)	What is the financial innovation that bundles subprime mortgages?
expanded dramatically	What happened to the usage of financial innovation products in the years leading up the financial crisis?
Q1 2007	When did the issuance of CDO peak?
$20 billion	What was the estimated value of CDO issuance in Q1 2004?
over $180 billion	What was the estimated value of CDO issuance at it's peak in Q1 2007?
36%	What percent of CDO assets were subprime and other non-prime mortgage debt in 2007?
under $20 billion	What was the estimated value of CDO issuance in Q1 2008?
innovative financial products	Which products created more complexity in the financial markets?
multiplied the number of actors connected	What effect did the introduction of innovative financial products have on a single mortgage?
indirect information	What did institutions rely more on as increasing distance from underlying assets occurred?
computer models of rating agencies	What is a type of indirect information that financial institutions and investors used to judge the risk?
2005	In what year did a group of computer scientists build a model for ratings produced by rating agencies that turned out to be accurate for what happened in 2006-2008?
interest rates or fees	What is a measurement of pricing of risk?
pricing of risk	What is the incremental compensation required by investors for taking on addition risk called?
lack of transparency about banks' risk exposures	According to several scholars, what prevented markets from correctly pricing risk before the crisis?
straightforward, readily understandable format	How should risk levels have been disclosed according to several scholars?
far more disruptive	What was the outcome of the financial crisis since risk levels were not adequately disclosed?
risk inherent with financial innovation	What did market participants fail to measure accurately?
a variety of reasons	What are the reasons market participants did not understand the impact financial innovation products would have?
approximately 32 cents on the dollar	How much did JPMorgan estimate was the average recovery rate for high quality CDOs that had been liquidated?
approximately five cents for every dollar	How much did JPMorgan estimate was the average recovery rate for mezzanine CDOs that had been liquidated?
$450bn	How much did banks estimate was the value of CDOs sold between late 2005 to the middle of 2007?
AIG	What firm insured obligations of various financial institutions using credit default swaps?
credit default swaps	What does the abbreviation CDS stand for?
September 2008	When did the government take over AIG?
over $180 billion	How much money did taxpayers provide in government support to AIG during 2008 and early 2009?
a premium	What did AIG receive for promising to pay Party A in the event that Party B defaulted?
George Soros	Who commented that the super-boom got out of hand when products became so complicated that risk could not be accurately calculated?
more complex	What happened to financial assets that made them harder to value?
the originators of synthetic products	Who did rating agencies rely on for information to rate financial innovation products?
the banks	When authorities could no longer calculate the risks of complex financial innovation products, who did they rely on for information?
international bond rating agencies	Who reassured investors by showing the risk of complex financial innovation products was actually less than they proved to be?
World Scientific	Who published "Credit Correlation: Life After Copulas" in 2007?
2006	When did relevant warnings and research on CDOs appear in an article by Donnelly and Embrechts?
Merrill Lynch	The volume "Credit Correlation: Life After Copulas" summarizes a 2006 conference held by what firm in London?
some of the copula limitations	What did the volume "Credit Correlation: Life After Copulas" propose models to rectify?
2006	What year did the book by Brigo, Pallavicini and Torresetti report warnings and research on CDOs?
Timothy Geithner	Who was President and CEO of the New York Federal Reserve Bank in June 2008?
2009	What year did Timothy Geithner become U.S. Treasury Secretary?
"parallel" banking system	In a June 2008 speech, Timoty Geithner placed blame for credit market freezing on which system?
shadow banking system	What is the "parallel" banking system also called?
maturity mismatch	What is the term defined as being vulnerable by borrowing short-term in liquid markets to purchase long-term illiquid and risky assets?
spring of 2007	When did the securitization markets supported by the shadow banking systems start to close down?
fall of 2008	When did the securitization markets supported by the shadow banking system nearly shut-down completely?
More than a third	How much of the private credit markets become unavailable as a source of funds?
Brookings Institution	What is the firm who reported that the traditional banking system does not have capital to close the gap as of June 2009?
a number of years	How many years would of strong profit would it take to generate enough capital to support additional lending?
Mark Zandi	What economist testified to the Financial Crisis Inquiry Commission in January 2010?
securitization markets	In January 2010, what markets did Mark Zandi testify about that remain impaired and investors anticipate more loan losses?
close to $2 trillion	What was the value of CDOs at their peak in 2006?
less than $150 billion	What was the private issuance of CDOs in 2009?
TALF	Almost all of the asset-backed issuance in 2009 was supported by what Federal Reserve program?
Rapid increases	Following the collapse in the housing bubble, what happened to a number of commodity prices?
nearly tripled from $50 to $147	How much did the price of oil increase from early 2007 to 2008?
plunging	What did the price of oil began doing when the financial crisis began to take hold in late 2008?
monetary policy	What is one of the reasons experts believe contributed to the volatilaty in oil prices in 2008?

over 80%

During 2007, what was the percent of defective mortgages not underwritten to Citi's standards?

Clayton Holdings

Who was the largest residential loan due diligence and securitization surveillance company?

54%

According to Clayton Holdings, how many mortgages issued from January 2006 to June 2007 met underwriting standards?

23

How many investment and commercial banks were included in Clayton Holdings' analysis of January 2006 to June 2007 loans?

28%

Per Clayton's analysis of loans issued from January 2006 to June 2007, what percent of loans did not meet minimal standards of any issuer?

900,000

How many mortgage loans did Clayton Holdings review in their analysis?

Predatory lending

What is the name for lending that entices borrowers to enter into unsafe secured loans?

Countrywide Financial

What company used a classic bait-and-switch method by advertising low interest rates?

adjustable rate mortgage (ARM)

Which type loan would the consumer be put into instead of the 1% or 1.5% interest rate loan as advertised?

negative amortization

What was created when the interest charged was greater than the amount of interest paid?

classic bait-and-switch

What type predatory lending method did Countrywide Financial use?

California Attorney General Jerry Brown

Who sued Countrywide for unfair business practices and false advertising?

adjustable rate mortgages (ARMs)

What type mortgages allowed homeowners to make interest-only payments?

disappeared

What happened to home equity when housing prices decreased?

Office of Thrift Supervision

Who made the decision to seize Countrywide after their financial condition deteriorated?

weak credit

What type credit did borrowers obtaining mortgages from Countrywide have?

Paul Krugman

What economist believed that regulations did not keep up with financial innovation?

Timothy Geithner

Who was the U.S. Treasury Secretary dealing with the aftermath of the financial crisis of 2007?

OECD

Which group's study suggested that Basel accords encourage unconventional business practices?

regulatory framework

It has been argued that what did not keep up with financial innovation?

Basel

What accords possibly contributed to or reinforced the financial crisis?

became highly leveraged

What did financial institutions do prior to the crisis?

complex

What type financial instruments are off-balance sheet securitization and derivatives?

government

Who bailed out financial institutions?

bankruptcy

Which option was nearly impossible for financial institutions to reorganize under?

complex financial instruments

What are the type financial instruments that were difficult for creditors and regulators to monitor?

five

How many U.S. investment banks significantly increased their financial leverage from 2004 to 2007?

financial shock

U.S. investment banks Increased their financial leverage and also increased their vulnerability to what?

capital requirements

Changes in what intended to keep U.S. banks competitive with their European counterparts?

over $4.1 trillion

How much debt did the top five U.S. investment banks report in fiscal year 2007?

Lehman Brothers

What financial institution went bankrupt and was liquidated in 2007?

saving more during adverse economic conditions

What is an example of something that can be detrimental if too many individuals pursue the same behavior?

paradox of thrift

What is it called when too many consumers attempt to save or pay down debt at the same time?

can cause or deepen a recession

What will happen if too many consumers save or pay down debt simultaneously?

Hyman Minsky

Who is the economist who described a "paradox of deleveraging"?

their assets

Financial institutions cannot all de-leverage simultaneously without a decline in the value of this?

Janet Yellen

Who was the U.S. Federal Reserve vice-chair in April 2009?

we were in a recession

What happened soon after the massive credit crunch hit?

recession

What deepened the credit crunch when demand and employment fell?

cancelling planned investments

What was one of the actions businesses took to preserve cash?

balance sheet deleveraging

What occurred in nearly every corner of the economy after the financial crisis of 2007?

financial innovation

What term refers to the ongoing development of financial products?

adjustable-rate mortgage

What is an example of financial innovation pertinent to the financial crisis?

CDS

What is the abbreviation for a form of credit insurance called credit default swaps?

mortgage-backed securities (MBS)

What is the financial innovation that bundles subprime mortgages?

expanded dramatically

What happened to the usage of financial innovation products in the years leading up the financial crisis?

Q1 2007

When did the issuance of CDO peak?

$20 billion

What was the estimated value of CDO issuance in Q1 2004?

over $180 billion

What was the estimated value of CDO issuance at it's peak in Q1 2007?

36%

What percent of CDO assets were subprime and other non-prime mortgage debt in 2007?

under $20 billion

What was the estimated value of CDO issuance in Q1 2008?

innovative financial products

Which products created more complexity in the financial markets?

multiplied the number of actors connected

What effect did the introduction of innovative financial products have on a single mortgage?

indirect information

What did institutions rely more on as increasing distance from underlying assets occurred?

computer models of rating agencies

What is a type of indirect information that financial institutions and investors used to judge the risk?

2005

In what year did a group of computer scientists build a model for ratings produced by rating agencies that turned out to be accurate for what happened in 2006-2008?

interest rates or fees

What is a measurement of pricing of risk?

pricing of risk

What is the incremental compensation required by investors for taking on addition risk called?

lack of transparency about banks' risk exposures

According to several scholars, what prevented markets from correctly pricing risk before the crisis?

straightforward, readily understandable format

How should risk levels have been disclosed according to several scholars?

far more disruptive

What was the outcome of the financial crisis since risk levels were not adequately disclosed?

risk inherent with financial innovation

What did market participants fail to measure accurately?

a variety of reasons

What are the reasons market participants did not understand the impact financial innovation products would have?

approximately 32 cents on the dollar

How much did JPMorgan estimate was the average recovery rate for high quality CDOs that had been liquidated?

approximately five cents for every dollar

How much did JPMorgan estimate was the average recovery rate for mezzanine CDOs that had been liquidated?

$450bn

How much did banks estimate was the value of CDOs sold between late 2005 to the middle of 2007?

AIG

What firm insured obligations of various financial institutions using credit default swaps?

credit default swaps

What does the abbreviation CDS stand for?

September 2008

When did the government take over AIG?

over $180 billion

How much money did taxpayers provide in government support to AIG during 2008 and early 2009?

a premium

What did AIG receive for promising to pay Party A in the event that Party B defaulted?

George Soros

Who commented that the super-boom got out of hand when products became so complicated that risk could not be accurately calculated?

more complex

What happened to financial assets that made them harder to value?

the originators of synthetic products

Who did rating agencies rely on for information to rate financial innovation products?

the banks

When authorities could no longer calculate the risks of complex financial innovation products, who did they rely on for information?

international bond rating agencies

Who reassured investors by showing the risk of complex financial innovation products was actually less than they proved to be?

World Scientific

Who published "Credit Correlation: Life After Copulas" in 2007?

2006

When did relevant warnings and research on CDOs appear in an article by Donnelly and Embrechts?

Merrill Lynch

The volume "Credit Correlation: Life After Copulas" summarizes a 2006 conference held by what firm in London?

some of the copula limitations

What did the volume "Credit Correlation: Life After Copulas" propose models to rectify?

2006

What year did the book by Brigo, Pallavicini and Torresetti report warnings and research on CDOs?

Timothy Geithner

Who was President and CEO of the New York Federal Reserve Bank in June 2008?

2009

What year did Timothy Geithner become U.S. Treasury Secretary?

"parallel" banking system

In a June 2008 speech, Timoty Geithner placed blame for credit market freezing on which system?

shadow banking system

What is the "parallel" banking system also called?

maturity mismatch

What is the term defined as being vulnerable by borrowing short-term in liquid markets to purchase long-term illiquid and risky assets?

spring of 2007

When did the securitization markets supported by the shadow banking systems start to close down?

fall of 2008

When did the securitization markets supported by the shadow banking system nearly shut-down completely?

More than a third

How much of the private credit markets become unavailable as a source of funds?

Brookings Institution

What is the firm who reported that the traditional banking system does not have capital to close the gap as of June 2009?

a number of years

How many years would of strong profit would it take to generate enough capital to support additional lending?

Mark Zandi

What economist testified to the Financial Crisis Inquiry Commission in January 2010?

securitization markets

In January 2010, what markets did Mark Zandi testify about that remain impaired and investors anticipate more loan losses?

close to $2 trillion

What was the value of CDOs at their peak in 2006?

less than $150 billion

What was the private issuance of CDOs in 2009?

TALF

Almost all of the asset-backed issuance in 2009 was supported by what Federal Reserve program?

Rapid increases

Following the collapse in the housing bubble, what happened to a number of commodity prices?

nearly tripled from $50 to $147

How much did the price of oil increase from early 2007 to 2008?

plunging

What did the price of oil began doing when the financial crisis began to take hold in late 2008?

monetary policy

What is one of the reasons experts believe contributed to the volatilaty in oil prices in 2008?