Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-586b7cd67f-dsjbd Total loading time: 0 Render date: 2024-11-28T00:05:10.969Z Has data issue: false hasContentIssue false

6 - Citigroup and the Financial Crisis of 2008

Published online by Cambridge University Press:  14 July 2022

James J. Park
James J. Park
Affiliation:
University of California, Los Angeles
Get access

Summary

What does solvent mean? JP Morgan CEO Jamie Dimon, 2010 A little more than five years after the passage of the Sarbanes–Oxley Act of 2002 (Sarbanes–Oxley),1 many of the nation’s largest financial institutions failed or were pushed to the brink of failure. An unprecedented decline in housing prices reduced the value of securities backed by housing loans owned by many banks. The resulting insolvency of some of the most significant Wall Street giants prompted the worst financial turmoil since the Great Depression. The crisis raised serious questions about the efficiency of markets as hundreds of billions of dollars in market capitalization suddenly disappeared. The losses suffered by investors were more severe and long lasting than those that came out of the market crisis that helped give rise to Sarbanes–Oxley.

Keywords

CitigroupDodd–FrankFinancial Crisis of 2008loss causationpublic versus private companiesbankingsubprime mortgagesfailure to prosecuteLehman Brothersasset valuation
Type
Chapter
Information
The Valuation Treadmill
How Securities Fraud Threatens the Integrity of Public Companies
 , pp. 95 - 113
Publisher: Cambridge University Press
Print publication year: 2022

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×