1. Financial crisis Part 3

2. Financial crisis 1. Events 2. Causes 3. Government actions 4. Future

3. Initial response: reduce rates Source: FED

4. Global government responses

5. 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

6. Effects of the bailout on banks balance sheets

7. American Recovery and Reinvestment Act of 2009 (stimulus)

8. Stimulus impact on GDP

9. Fiscal and monetary impacts