The Lessons Learned From the 2008 Financial Crisis

The video discusses the aftermath of the Lehman Brothers collapse, highlighting the human cost and job losses in the financial sector. It explains the shift from sell side to buy side in finance, with asset managers expanding. The growth in risk management and compliance is covered, noting increased regulations. The video also addresses shadow banking and systemic risks, emphasizing the interconnectedness of financial institutions and the potential for future crises.

What was a significant challenge for those who lost their jobs at Lehman Brothers?

• Relocating to a different country

• Finding new jobs due to widespread layoffs in the financial sector

• Starting their own businesses

• Adapting to a new industry

Which sector experienced growth as the sell side shrank?

• Retail banking

• Insurance

• Buy side, including asset management firms

• Real estate

What role did JP Morgan significantly expand after the financial crisis?

• Sales

• Customer service

• Compliance

• Marketing

What is a characteristic of shadow banks?

• They have banking licenses to collect deposits

• They are involved in credit intermediation without being traditional banks

• They are regulated like traditional banks

• They primarily focus on retail banking

What is a potential risk associated with shadow banks?

• They only operate in local markets

• They are completely isolated from traditional banks

• They could cause a domino effect if one fails

• They are too small to impact the financial system