Where the risks are high, the rewards are higher. As a Wall Street bigwig, vie for bailouts, manage assets, negotiate loans, and create the financial giant that truly is too big to fail. It’s every man for himself.
It seems the wolves of Wall Street have bitten off more than they can chew. The unthinkable has happened in the American financial sector: the housing market--once the standard-bearer of stable and safe loans--has collapsed as a product of reckless subprime mortgage lending. Banks colluded with major bond-rating companies to maintain ratings on worthless bonds known as collateralized debt obligations, which were comprised of bundles of ultra-risky subprime mortgage loans so large they could maintain high credit ratings. The high amount of subprime loans spiked up property values, inflating the so-called “housing bubble” and allowing banks to rake in money on a scale never seen before. By the time the bubble burst and people defaulted on their loans, the entire market was so fraudulent that no safety net existed to prevent its total collapse. Now the banks are billions of dollars in debt and risk bankruptcy if a major emergency financial overhaul is not pursued by industry heads, Federal Reserve officials, and government policymakers. This unique gathering of such leaders will attempt to alleviate the financial turmoil and nip the crisis in the bud, lest the crumbling banks take the global economy with them.