The document provides an overview of the subprime lending crisis and its consequences. It discusses how subprime lending involved higher risk borrowers and loans, which led to high default rates. This bursting of the US housing bubble and subprime mortgage crisis had widespread effects, causing the bankruptcies of lending institutions like New Century Financial in 2007 and Lehman Brothers in 2008, government takeovers of Fannie Mae and Freddie Mac, and billions in write-downs and losses for banks like HSBC, Merrill Lynch, and AIG, leading to the largest government bailouts.

1. A Brief Introduction to Presented by Martian

2. subprime lending 次贷危机 B-paper near-prime non-prime second chance lending

3. subprime lending predatory lending higher expectation of risk higher interest rates

4. subprime subprime lending subprime mortgages subprime car loans subprime credit cards

5. problems on credit history subprime

6. Factors credit status of the borrower income and job history income to mortgage payment ratio subprime

7. 违约率 Default may occur if… the debtor is either unwilling or unable to pay their debt default rate

8. 美国房市泡沫 United States housing bubble California, Florida, New York, Michigan, the Northeast, and the Southwest markets U.S. housing bubble

9. 美国房市泡沫 United States housing bubble California, Florida, New York, Michigan, the Northeast, and the Southwest markets U.S. housing bubble

10. 美国房市泡沫 Peaked in 2005 Declined in 2006 to present Default rate increased in 2006-2007 Led to crisis in August 2007 U.S. housing bubble

11. High default rate on “subprime” Bursting of US housing bubble Subprime mortgage crisis

12. Financial Institutions New Century Financial Corporation a real estate investment trust originated mortgage loans in US 1 st corporation bankrupted because of the subprime crisis in April 2007

13. Financial Institutions HSBC Holdings plc ( 滙豐控股有限公司 ) world's largest company world's largest banking group Predecessor & subsidiary: HSBC $10.5 billion write-down in Feb. 2007

14. Financial Institutions IKB Deutsche Industriebank lending to small and medium-sized companies In August 2007, bailed out due to bad losses

15. Financial Institutions Northern Rock plc British bank founded in 1965 Sept. 14 2007, received a liquidity support from the Bank of England 00:01 Feb. 22 2008, taken into state ownership

16. Financial Institutions government sponsored enterprises (GSE) authorized to make loans and loan guarantees Fannie Mae & Freddie Mac

17. Financial Institutions Federal National Mortgage Association Located in Washington, DC. Founded in 1938 Roosevelt's New Deal Provide liquidity to the mortgage market

18. Financial Institutions Federal Home Loan Mortgage Corporation Founded in 1970 To end Fannie Mae's monopoly

19. Financial Institutions September 7, 2008 Federal Housing Finance Agency (FHFA) Place two GSEs into conservatorship by FHFA Fannie Mae & Freddie Mac

20. Financial Institutions Lehman Brothers Holdings Inc. A global financial-services firm Founded in 1850 Investment banking, investment management, and private banking Primary dealer in the U.S. Treasury securities market Located in New York City

21. Financial Institutions In 2008, an unprecedented loss to the crisis a result of having held on to large positions in subprime mortgage Sept. 15, 2008, filed for bankruptcy protection

22. Financial Institutions Merrill Lynch & Co., Inc. A global financial services firm Headquartered in New York City Nov. 2007 $8.4 billion write-down And remove its CEO

23. Financial Institutions The Bear Stearns Companies, Inc. based in New York City largest global investment bank and securities trading and brokerage firm March 2008, the Federal Reserve Bank of New York provided an emergency loan sold to JPMorgan Chase

24. Financial Institutions The Goldman Sachs Group, Inc. Morgan Stanley become regulated banks become bank holding companies

25. Financial Institutions American International Group, Inc. a major American insurance corporation dates back to 1919, established in Shanghai 18th-largest company in the world Sept. 16, 2008, suffered a liquidity crisis accept Federal Reserve Bank's rescue package largest government bailout