This case invites students to estimates based on these materials, the causes, consequences, and potential solutions to the financial crisis of 2007-2009. The premise of the business professor is preparing a presentation dramatizes the analysis of the financial crisis. Examination of his data, much of which in the form of graphs, professor reflects on the central role of the banks and the impact of risk, leverage and incentives. His main thesis is that the main issues related to the crisis was wrong assessment of risks taken, resulting in risk management is not able to do its job clotting and risk management, as expected. "Hide
by Giorgos Allayannis Source: Darden School of Business 16 pages. Publication Date: July 7, 2009. Prod. #: UV2551-PDF-ENG