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alekssr [168]
2 years ago
15

Why does Prof. St. Clair argue that allowing Lehman Brothers Investment Bank to fail in 2008 (i.e., during the Bush Administrati

on) was a terrible decision?
Business
1 answer:
snow_lady [41]2 years ago
6 0

According to Prof. St. Clair, allowing Lehman Brothers to fail in 2008 breached the Fed's primary mandate, and worsened the financial crisis of 2008.

<h3>What caused the Lehman Brothers' failure?</h3>

The main cause of the failure of Lehman Brothers Investment Bank was its involvement in the subprime mortgage market.

Lehmann Brothers recorded unprecedented loss due to the 2008 subprime mortgage crisis.

The investment bank held onto large positions in subprime and other lower-rated mortgage tranches when securitizing the underlying mortgages.

Thus, according to Prof. St. Clair, allowing Lehman Brothers to fail in 2008 was a terrible decision because its failure breached the Fed's primary mandate, and worsened the financial crisis of 2008.

Learn more about Lehman Brothers' Failure at brainly.com/question/7550583

#SPJ1

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Answer:

The disposal resulted was at D. No gain or loss

Explanation:

The gain or loss on disposal on a fixed asset is calculated by comparing the sales proceeds from disposing off the asset and the carrying value of the asset.

The carrying value of the asset is its net book value which is calculated as follows,

Carrying value = Cost - Accumulated depreciation

If the carrying value is equal to the sales proceeds from disposal, there is no gain or loss.

The carrying value of copy machine was = 45000  -  44000  =  $1000

The sales proceeds were also $1000

Thus, gain/loss on disposal = 1000 - 1000 = $0

Thus, there was no gain or loss on disposal.

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