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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. Who was described as the Chief Financial Officer at Goldman Sachs in Chapter 9?
(a) David Viniar
(b) Andrew Gowers
(c) Lloyd Blankfein
(d) Joe Gregory

2. What were the quarterly losses that were announced at Lehman Brothers on June 9, 2008?
(a) $2.8 billion
(b) $3.6 billion
(c) $2.2 billion
(d) $1.7 billion

3. Where does the author say Gerald Domini lived in Chapter 5?
(a) Summit, NJ
(b) Hartford, Connecticut
(c) Bangor, Maine
(d) Boston, Massachusetts

4. According to the author in Chapter 3, Geithner kept Jamie Dimon from abandoning the negotiations with Bear Stearns by working out a deal where the Federal Reserve lent money to Bear Stearns through JP Morgan, guaranteeing Morgan against how much in losses?
(a) $5 billion
(b) $18 billion
(c) $14 billion
(d) $29 billion

5. In the mid-1980s, Bob Willumstad was rising through the executive ranks of what financial corporation?
(a) Chemical Bank
(b) Barclays
(c) Westwood Capital LLC
(d) Northern Trust

Short Answer Questions

1. Bob Willumstad had been asked by the board of AIG to replace whom as CEO in Chapter 8?

2. What title did Hank Paulson hold in 2008?

3. Hank Paulson and his staff prepared a secret plan for how to deal with the situation should Lehman or another large firm go bankrupt, or if several banks should begin to fail at once. Who did they present their plan to in a meeting described by Sorkin in Chapter 4?

4. Who is described as Lehman Brothers’ spokesperson in Chapter 6?

5. With all eyes on Lehman after the Bear collapse, Hank Paulson suggested to Dick Fuld that it would be a good idea for Lehman to increase its holdings of what to shore up confidence in the bank?

Short Essay Questions

1. What executive meeting does the author describe in the opening of Chapter 9? Where did the meeting take place?

2. What was John Thain’s plan for turning around Merrill Lynch after his acceptance of the role as CEO in Chapter 7?

3. How was Hank Paulson’s rise to the post of Treasury Secretary described in Chapter 2?

4. What was Hank Paulson’s first concern regarding the possibility of failure of Lehman Brothers, according to the author in Chapter 4?

5. How does the author describe David Einhorn in Chapter 5?

6. Who was let go from Lehman Brothers during an executive committee meeting in Chapter 6?

7. For what reason was Hank Paulson angry when he heard about the JP Morgan and Bear Stearns deal in Chapter 2?

8. How was Lehman Brothers impacted by the news of Bear Stearns’ collapse, according to the author in Chapter 1? What actions did the company take?

9. What advice did Skip McGee give to Dick Fuld in Chapter 6? How did Fuld respond?

10. How does the author describe Jamie Dimon’s position in the Bear Stearns deal in Chapter 3?

(see the answer keys)

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