Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 59 , 05 January 2024
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Exploring the Subprime Crisis
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Abstract
This paper delves into an examination of the three primary interrelated factors that precipitated the subprime mortgage crisis: regulatory deficiencies, policy failures, and dysfunctional innovation. Furthermore, it conducts an analysis of the underlying factors that exacerbated the ramifications of this economic upheaval: the excessive proliferation of securitization, a deficiency in market transparency, inadequate risk management practices within financial institutions, and challenges associated with credit rating agencies. The subprime mortgage crisis has incited extensive discourse across diverse sectors, notably encompassing two pivotal dimensions: firstly, inquiries surrounding the transparency of assets and, secondly, predicaments pertaining to governmental intervention for market stabilization. This article undertakes a comprehensive categorization and in-depth exposition of these discrete issues, proffering meticulous explications corroborated by empirical substantiation. Culminating in its denouement, the article proffers prudent recommendations aimed at preemptively mitigating the advent of future crises. The entire discourse endeavors to maintain an objective and truthful perspective, aiming to explore the fundamental nature of the subprime mortgage crisis rigorously.
Keywords
securitization, transparency, rating agencies, risk management, CDO
References
1. Demyanyk, Y., & Van Hemert, O. (2007, October 10). Understanding the subprime mortgage crisis.
2. Mian, A. R., & Sufi, A. (2007, December 17). The consequences of mortgage credit expansion: Evidence from the U.S. Mortgage Default crisis.
3. Whalen, R. C. (2008, April 2). The subprime crisis: Cause, effect and consequences.
4. Keys, B. J., Mukherjee, T. K., Seru, A., & Vig, V. (2008, March 3). Did securitization lead to lax screening? evidence from subprime loans.
5. Bebchuk, L. A. (2008, September 26). A plan for addressing the financial crisis.
6. Turnbull, S. M., Crouhy, M., & Jarrow, R. A. (2008, March 25). The Subprime Credit Crisis of 07.
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-209-1
- ISBN (Online)
- 978-1-83558-210-7
- Published Date
- 05 January 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/59/20230989
- Copyright
- 05 January 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited