Reflection On Academic Discourse

The effects of transparency in a market on the financial crisis

Maastricht University
School of Business and economics
Maastricht, 23 January 2012
Nicolas Münzer, NM; Kevin Leurs, KMM; Max van Zoest, MCJ
ID numbers: i6039536; i6039559; i6042051
Studies: International Business; Economics; Econometrics
Course code: EBS1508
Group number: 5D
Tutors name: C. Bach
Writing Assignment: Reflections Paper

1. Introduction
Seven hundred meg dollars, that is the price the Ameri john Senate paid for the bailout bill on tertiary October 2008. The velocity and magnitude of the financial crisis in 2008 is unique. All this has been triggered by banks and hedge funds, seeking for short-term profits and driven by greed, trading with abstruse derivatives of which an average citizen has never have perceive of before. High risky mortgage bonds and insurances have been put unneurotic and sold as packages. Oversimplified and shortsighted the risks of those packages have been valued incorrectly. The mint of the so-called credit default swaps and collateralized debt obligation market exploded. Banks traded these derivatives among from each one other, leading to an opaque mesh of toxic assets. The bankruptcy of Lehman Brothers, a US-based investment bank, built the peak of the financial crisis (Amadeo, 2012).



Months and still geezerhood after the peak, the scope of the crisis is inestimable. The mesh of toxic assets has to be scanned human race by piece, revealing the complexity of the financial administration. The question arises, how can such a crisis be prevented in the future? Was it a lack of transparency, which enabled the growth of such a morbid system?
This paper examines the impact of non-transparency on the financial crisis in 2008. With inspection and repair of examples of the major banks, it investigates which role the lack of transparency played and concluding, if more transparency could prevent a future crisis.

2. Transparency
Transparency is a state of mind. It means that a company, institution or...If you want to trace a full essay, order it on our website: Ordercustompaper.com



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