|This is an advanced course that uses the tools of corporate finance to analyze financial crises. Much of the material will pertain to the most recent global crisis, but we will also study past crises. We will begin by studying the Great Depression and the Japanese and Swedish economic crises in the 1990s. Next we will study the proximate causes of the recent crisis, housing and structured finance. The third part of the course will cover the periods of stress related the demise of Bear Stearns, the failure of Lehman Brothers and the sovereign debt problems that surfaced for Greece. The last section of the course will pertain to regulatory reform proposals aimed at averting future crises. The class will consist of a blend of lectures, cases, and general discussion. There will likely be a mandatory extra class meeting with a guest speaker. |
To accommodate the guest speaker I will reschedule a class. A detailed week-by-week syllabus and answers to a set of frequently asked questions (including who the guest speaker will be and the time of the rescheduled class) will be posted on the http://chalk.uchicago.edu course web page, by February 1.
Preassignment: For the first class, doing the reading assignment that is posted in Chalk and complete the homework associated with the reading. Also bring your name card, along with a completed copy of the student information sheet that is posted in Chalk. The first class assignment will also be posted on my personal web site under the teaching page if you cannot access Chalk.
|Readings will come from a CoursePack of articles. The book by David Wessel, “In Fed We Trust” is also required. Students are expected to read The Wall Street Journal every day. The course draws heavily from current events.|
|Based on class participation, case write-ups, and a final exam. No auditors and no pass/fail grades. Non-Booth students need permission of instructor. If you are going to miss class or cannot devote significant time to preparing the cases, you should not take this course.|
|Business 35200: highly recommended, and if you have not completed that course (or a more advanced substitute), you will be limited in your study groups. I insist that people who are not fully prepared will not be able to free-ride off people who have taken the prerequisite. Your class participation grade is also at risk if your comments in class reveal that you have not mastered the material in Business 35200. Business 33040 or 33401 is also highly, highly recommended.|
|Sample Exam Questions/Problem Sets:|
|Sample questions available to registered students in the course Chalk site.|
Description and/or course criteria last updated: 07/2012
|Course Conditions and Course Related Items:|