How Goldman Sachs Survived the US Mortgage Crisis



IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed

Code : ECC0041

Year :
2008

Industry : Banking, Insurance and Financial Services

Region : US

Teaching Note: Available

Structured Assignment : Available

Buy This Case Study
OR
       

Abstract: The massive financial cataclysm triggered by the US subprime mortgage lending during the year 2006 forced many leading mortgage lenders in the US to close their operations and file for bankruptcy. It also resulted in the investment banks, engaged in securitising subprime loans into marketable securities, running the risk of insolvency. Hit by the market turbulence, leading global investment banks, including Lehman Brothers, Merrill Lynch, Citigroup, UBS, Bear Stearns and Morgan Stanley, registered a total loss of $136 billion in 2007 for their subprime exposures. However, Goldman Sachs Group Inc., one of the world's largest investment banks, reported net earnings of $11.6 billion in 2007 despite the credit turmoil. This case facilitates discussion on how meticulously Goldman has averted the crisis and reported revenues amidst the massive mortgage melt- down.


Case Studies on Best Practices - Vol. I

Case Studies on Aviation Industry


Case Studies on Aviation Industry

For Case Books Click Here >>

For Case eBooks Click Here >>

Pedagogical Objectives:

  • To trace out the reasons behind the US mortgage crisis
  • To analyse the impact of the crisis on Global financial market
  • To discuss Goldman Sachs' pro-active strategies in mitigating the market risks and reporting profits.

    Keywords : US Financial Crisis, South East Asia, Asian Financial Crisis, 1997 Crisis, South Korea, Chaebols, Current Account Deficit, Fiscal Deficit, Economic Indicators

    Contents :
    The US Mortgage Crisis
    Impact of the Crisis
    Goldman's survival strategy


    How Goldman Sachs Survived the US Mortgage Crisis >>


    Recently Bought Case Studies

      Recently Bought Case Studies







  • Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501 504, Andhra Pradesh, INDIA.
    Mob: +91- 9640901313, Phone: +91 - 08417 - 236672, Fax : + 91 - 08417 - 236674
    E-mail: casehelpdesk@ibsindia.org

    2003-2013 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap