Problem #1 In the financial crisis of 2008, the issue of securitization was paramount. What is securitization? How does it work? A simple explanation from the mortgage industry is sufficient. Problem...

Problem #1
In the financial crisis of 2008, the issue of securitization was paramount. What is securitization? How does it work? A simple explanation from the mortgage industry is sufficient.
Problem #2
Briefly describe the Glass-Steagall Act of 1933 and its eventual repeal. Was it a good idea or bad?
Problem #3
Name three rating agencies and describe their role in making capital markets efficient. Also, explain how GAAP should also contribute to market efficiency.
Problem #4
Do a net search for Fischer Black’s article titled “Noise” published in 1986. Please read the paper and prepare a few paragraphs of how “noise” impacts the functioning of markets today.




Problem #1 In the financial crisis of 2008, the issue of securitization was paramount. What is securitization? How does it work? A simple explanation from the mortgage industry is sufficient. Problem #2 Briefly describe the Glass-Steagall Act of 1933 and its eventual repeal. Was it a good idea or bad? Problem #3 Name three rating agencies and describe their role in making capital markets efficient. Also, explain how GAAP should also contribute to market efficiency. Problem #4 Do a net search for Fischer Black’s article titled “Noise” published in 1986. Please read the paper and prepare a few paragraphs of how “noise” impacts the functioning of markets today.