Research on the Collapse of US Investment Banks in the Subprime Mortgage Crisis

Qirun Zhang ()
Additional contact information
Qirun Zhang: China Agricultural University, School of Economics and Management

A chapter in Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022), 2022, pp 174-181 from Springer

Abstract: Abstract The subprime mortgage crisis was a famous financial event in history, which brought a huge impact to the US and even the world economy at that time, and the five major Wall Street banks suffered serious setbacks. In this paper, the failure of investment banks in the subprime mortgage crisis is attributed to the economic background, government policies and investment banks themselves, and the reasons for the failure of investment banks are summed up by synthesizing market mechanisms and policy requirements. Taking Morgan Stanley Bank as an example, through the analysis of its financial statement data, it discusses how investment banks deal with the crisis, and puts forward suggestions for the development of modern investment banks according to their operating conditions. This paper proposes that in the operation and development of modern investment banks, the investment banking business should be expanded, the innovation and control of financial products should be strengthened. Enterprises should strengthen the remuneration mechanism of senior managers and link the remuneration of senior managers with the long-term interests of the enterprise. The government should deepen the supervision and inspection of the financial market, and improve the legal system to restrict financial institutions and financial business as soon as possible.

Keywords: Subprime mortgage crisis; Investment banks; Morgan Stanley Bank (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-052-7_21

Ordering information: This item can be ordered from
http://www.springer.com/9789464630527

DOI: 10.2991/978-94-6463-052-7_21

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().