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US banking sector during financial crisis
Valtr, Jiří ; Bolotov, Ilya (advisor) ; Pavlík, Zdeněk (referee)
This bachelor thesis looks into the financial crisis which began aproximately before 7 years in United States of America caused by the burst of the mortgage bubble. The main goal of this thesis is to explain and describe the fall of Too big to fail institutions in the banking sector. This thesis is coherent, however, it does not provides all the information about every event. Which occured during financial crisis. The final thesis has three main chapters. First familiarize us with causes of mentioned financial crisis. It describes main players who will be mentioned thorough the thesis. It also covers mortgage bubble, it's burst and problems attached to it. This section also pays close attention to financial instruments, mortgages and derivatives. In the second part the origin of events caused by bubble burst and it's impact on troubled institutions are described. Last chapter covers more institutions affected and tries to show and explain the solving proces from the US government to save these institutions.
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The role of moral hazard in the financial crisis
Demčík, Matej ; Žamberský, Pavel (advisor) ; Hnát, Pavel (referee)
The financial crisis in the USA is due to its great consequences still considered to be current topic. Its causes were discussed and analyzed by many researchers, but mostly from the financial point of view. This thesis takes different approach and identifies the role of the moral hazard in the pre-crisis period. Moral hazard is very often underestimated and for many people uninteresting factor. Therefor, the thesis is divided into four parts, which present the theoretical background of moral hazard and bring up the importance and constant presence of it in today's world. The main part of this work is last chapter, which analyzes moral hazard in the causes of the financial crisis. Moral hazard played key role in the pre-crisis period when it was present at all possible levels deforming the behavior of market players and causing the market failure. The deformation had mostly form of excessive risk-taking, unfavourable financial products and abuse of the information asymmetry. Very specific and dangerous kind of moral hazard is associated with the government interventions such as Greenspan doctrine or Too big to fail policy. It is because of its systematic character, when opposed to the moral hazard in the private sector is not required the presence of information asymmetry.
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The analysis of "Too Big to Fail" policy in the environment of financial institutions
Kolařík, David ; Lipka, David (advisor) ; Pichaničová, Ludmila (referee)
The aim of bachelor thesis was to answer the question whether politicians make their decisions about the "Too Big to Fail" policy on advice of economists or for other reasons. The bachelor thesis clarified many opinions and recommendations of economists, which were expressed in empirical and theoretical studies. Economists clearly thought that the government should not pursue the "Too Big to Fail" policy and thus not provide the assistance to financial institutions at risk of bankruptcy. Considering the fact that politicians provide the financial assistance to large financial institutions in most cases, the hypothesis that politicians act in case of "Too Big to Fail" according to recommendations of economists was rejected. Furthermore the bachelor thesis mentioned reasons that may influence decisions of politicians and alternative solution of financial institutions insolvency.
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