Which two companies were notably impacted by the credit crisis?

Get ready for FIN4243 Debt and Money Markets Exam at UCF. Use flashcards and multiple choice tests, with detailed explanations for each answer. Ace your exam!

The two companies that were notably impacted by the credit crisis are indeed Lehman Brothers and AIG. Lehman Brothers, an investment bank, infamously filed for bankruptcy in September 2008, marking one of the largest bankruptcies in U.S. history and a pivotal event in the financial crisis. This event triggered widespread panic in financial markets and highlighted vulnerabilities in the banking system.

AIG (American International Group), a global insurance corporation, faced severe liquidity issues due to its exposure to mortgage-backed securities and credit default swaps. The company's failure would have had catastrophic consequences on the global economy, leading the U.S. government to provide a massive bailout to prevent systemic collapse.

The significant struggles faced by both Lehman Brothers and AIG during the credit crisis exemplify how certain financial institutions were at the center of the crisis, directly contributing to the broader financial turmoil. The other options, while involving companies affected by the economic downturn, do not have the same level of impact associated with the crisis's pivotal moments.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy