How banks have contributed to outbreak of financial crisis, Corporate Finance

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Question:

1929/ 2009: a remake of the worst financial crisis affecting the whole world? Central Banks and Governments are implementing all sorts of rescue plans incorporating monetary and fiscal measures to re-start the economic engine.

(a) Describe how banks have contributed directly and/or indirectly to the outbreak of the present financial crisis.

(b) Do you think that banks need to be bailed out if they have a major liquidity and/or solvency problem? Why?


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