Corporations have responsibility in the financial meltdown

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1. Do corporations have responsibility in the financial meltdown and its aftermath of recession – the most serious since the Great Depression of 1930s?

2. Free-market capitalism dictates that markets create efficient solutions and businesses that fail should be left to fail. Secretary Paulson was concerned about “moral hazard” after helping Bear Stearns. What did this mean?

3. Why did the government give AIG a loan of $85 billion after refusing to loan money for the Lehman Brothers acquisition?

4. The last scene in the film shows the leaders of the largest banks being told by Henry Paulson that they would have to accept government capital injections. What was the rationale for that decision?

Reference no: EM13692376

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