TBTF: Chapters 17 – 20
Instructions:
Too Big to Fail
Chapter 17 – 20 Discussion Questions
1) In Chapter 17 what is the debate over the design of a larger fiscal backstop? What allowance does Hank Paulson receive from the president?
2) What are the proposed changes to financial markets to stop the bank run and equity market selloff? What does President Bush ultimately ask the Fed and Treasury to do?
3) In Chapter 18 what banks are considered as suitors to Wachovia? What slows down Wachovia’s motivation for a merger? What does the Goldman CEO propose at the merged leadership team with the Wachovia CEO?
4) What are the potential outcomes for Morgan Stanley in Chapter 18?
5) In Chapter 19 what are the terms of the deal Warren Buffett agrees to invest in Goldman? What is the sticking point around executive compensation for the congressional deal to pass TARP?
6) What is the structure of the public private investment fund proposed and backed by Warren Buffett?
7) What is the final outcome for Morgan Stanley and the terms of the deal?
8) Why does Treasury want to force all banks to take TARP money?
9) What is your overall opinion of this book?
