2008 Financial Crisis Trivia Questions

Lehman filed for bankruptcy on Sept 15, 2008. Two days later, the Fed bailed out AIG for $85 billion, fearing global contagion from its insurance contracts.

While subprime mortgages were a key factor, the crisis also involved complex derivatives, global imbalances, and regulatory failures in multiple countries.

Bank of America agreed to acquire Merrill Lynch on September 14, 2008, in an all-stock deal valued at approximately $50 billion, rescuing it from potential collapse during the financial crisis.

Dodd-Frank increased regulation and oversight but did not break up big banks; it imposed stress tests and the Volcker Rule on proprietary trading.

Iceland's three major banks failed within a week, causing a 50% stock market drop and a deep recession—one of the worst in modern history for a small nation.

European banks like UBS and Deutsche Bank suffered huge losses in 2008, and the crisis immediately spread via cross-border lending and toxic US assets.

The hedge fund collapse in July 2007 was widely reported and sparked immediate credit market turmoil, so it did not go largely unnoticed. The crisis's beginning was noticeable, not unnoticed.

Treasury Secretary Hank Paulson and Fed Chair Ben Bernanke discussed closing banks for a few days, but decided against it, fearing mass panic.