Coping with the Crisis

Thomas H. Stanton

in Why Some Firms Thrive While Others Fail

Published in print July 2012 | ISBN: 9780199915996
Published online September 2012 | e-ISBN: 9780199950324 | DOI:
Coping with the Crisis

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Chapter 3 looks at four firms that successfully withstood the crisis: JPMorgan Chase, Goldman Sachs, Wells Fargo, and Toronto Dominion Bank (TD Bank), including their preparation, responses to the crisis, and effects of the crisis on them. These firms dealt in different ways with the period before the crisis and the crisis itself. They possessed discipline and long-term perspective, robust communications and information systems, capacity to respond effectively to early warning signs, and a process of constructive dialogue between business units and risk managers; each of the successful firms applied these according to its distinctive culture. Unsuccessful firms lacked many or all of these attributes. Unsuccessful firms included those that received massive government infusions of support (Citigroup, Bank of America, Fannie Mae, Freddie Mac, UBS, and AIG), were merged on disadvantageous terms (Bear, Countrywide), or simply went out of business (WaMu, Lehman, IndyMac).

Keywords: Fannie Mae; WaMu; Lehman Brothers; Countrywide; AIG; JPMorgan Chase; Goldman Sachs; Toronto Dominion Bank; information systems; discipline

Chapter.  10260 words. 

Subjects: Financial Markets

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