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

DOI

10.2991/978-94-6463-052-7_21How to use a DOI?

Keywords

Subprime mortgage crisis; Investment banks; Morgan Stanley Bank

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.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Qirun Zhang
PY  - 2022
DA  - 2022/12/27
TI  - Research on the Collapse of US Investment Banks in the Subprime Mortgage Crisis
BT  - Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)
PB  - Atlantis Press
SP  - 174
EP  - 181
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-052-7_21
DO  - 10.2991/978-94-6463-052-7_21
ID  - Zhang2022
ER  -