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.