Financial crisis Part 3
Financial crisis 1. Events 2. Causes 3. Government actions 4. Future
Initial response: reduce rates Source: FED
Global government responses
Beneficiaries of the bailout CompanyPreferred Stock purchased (millions USD) Citigroup$50,000 Bank of America$45,000 AIG (American International Group)$40,000 JPMorgan Chase$25,000 Wells Fargo$25,000 General Motors$13,400 Goldman Sachs$10,000 Morgan Stanley$10,000 PNC Financial Services Group$7,579 U.S. Bancorp$6,600 GMAC Financial Services$5,000 Chrysler$4,000 Capital One Financial$3,555 Regions Financial Corporation$3,500 American Express$3,389
Effects of the bailout on banks balance sheets
American Recovery and Reinvestment Act of 2009 (stimulus)
Stimulus impact on GDP
Fiscal and monetary impacts