DISCUSSION 1
Answer the following questions:
- What is the TED Spread, and what happened to it just after Lehman Brothers collapsed?
- What does the TED Spread indicate about sources of funds for commercial banks?
- Does the condition of the TED Spread after the Lehman Brothers collapse give you any indication of issues within the economy in general, and in commercial banking specifically?
Be sure to rely on sources and cite your references in APA format.
DISCUSSION 2
The Glass-Steagall Act of 1933 was passed in response to the perception that commercial bank engagement in securities trading was a significant contributing factor to the stock market crash of 1929.
Whether that perception is true or not is subject to debate. The Gramm-Leach-Bliley Act of 1999 basically repealed the Glass-Steagall Act. There has been some suggestion that the Gramm-Leach-Bliley Act was a significant contributing factor to the liquidity crisis in 2008 and the recession that followed.
Do you think that the Gramm-Leach-Bliley Act contributed to the liquidity crisis? Why or why not?
250 WORDS EACH
