CHAPTER 6
Mini-Case: An Exception That Proves the Rule:
Ivan Boesky
Mini-Case: Should You Hire an Ape as Your Investment Adviser?
CHAPTER 7
Mini-Case: The Enron Implosion
Mini-Case: Should We Kill
All the Lawyers?
Mini-Case: The Demise of Arthur Andersen
Mini-Case: Credit Rating Agencies and the 2007–2009
Financial Crisis
Mini-Case: Has Sarbanes-Oxley Led to a Decline in U.S. Capital
Markets?
CHAPTER 8
Inside the Fed: Was the Fed to Blame for the Housing Price
Bubble?
Global: Ireland and the 2007–2009 Financial Crisis
Global: The Perversion of the Financial Liberalization/Globalization
Process: Chaebols and the South Korean Crisis
CHAPTER 9
Inside the Fed: The Political Genius of the Founders of the
Federal Reserve System
Inside the Fed: The Special Role of the Federal Reserve Bank
of New York
Inside the Fed: The Role of the Research Staff
Inside the Fed: Green, Blue, Teal and Beige: What Do These
Colors Mean at the Fed?
Inside the Fed: How Bernanke’s Style Differs from Greenspan’s
Inside the Fed: The Evolution of the Fed’s Communication
Strategy
CHAPTER 10
Inside the Fed: Why Does the Fed Need to Pay Interest on
Reserves?
Inside the Fed: Federal Reserve Lender-of Last-Resort Facilities
During the 2007–2009 Financial Crisis
Global: The European Central Bank’s Monetary Policy Strategy
Inside the Fed: Chairman Bernanke and Inflation Targeting
CHAPTER 11
Mini-Case: Treasury Bill Auctions Go Haywire
Global: Ironic Birth of the Eurodollar Market
CHAPTER 13
Mini-Case: History of the Dow Jones Industrial Average
CHAPTER 14
E-Finance: Borrowers Shop the Web for Mortgages
CHAPTER 16
Inside the Fed: A Day at the Federal Reserve Bank of New
York’s Foreign Exchange Desk
Global: Why the Large U.S. Current Account Deficit
Worries Economists
Global: The Euro’s Challenge to the Dollar
Global: Argentina’s Currency Board
Global: Dollarization
CHAPTER 17
Conflicts of Interest: Barings, Daiwa, Sumitomo, and Societé
Generale: Rogue Traders and the Principal–Agent Problem
CHAPTER 18
Global: The Spread of Government Deposit Insurance
Throughout the World: Is This a Good Thing?
Global: Whither the Basel Accord?
Mini-Case: Mark-to-Market Accounting and the 2007–2009
Financial Crisis
Mini-Case: The 2007–2009 Financial Crisis and Consumer
Protection Regulation
E-Finance: Electronic Banking: New Challenges for Bank
Regulation
Global: International Financial Regulation
CHAPTER 19
E-Finance: Will “Clicks” Dominate “Bricks” in the Banking
Industry?
E-Finance: Why Are Scandinavians So Far Ahead of Americans
in Using Electronic Payments and Online Banking?
E-Finance: Are We Headed for a Cashless Society?
Mini-Case: Bruce Bent and the Money Market Mutual Fund
Panic of 2008
E-Finance: Information Technology and Bank Consolidation
Mini-Case: The 2007–2009 Financial Crisis and the Demise of
Large, Free-Standing Investment Banks
CHAPTER 20
Mini-Case: The Long Term Capital Debacle
Conflicts of Interest: Many Mutual Funds Are Caught Ignoring
Ethical Standards
Conflicts of Interest: SEC Survey Reports Mutual Fund Abuses
Widespread
CHAPTER 21
Mini-Case: Insurance Agent: The Customer’s Ally
Conflicts of Interest: Insurance Behemoth Charged with
Conflicts of Interest Violations
Mini-Case: Power to the Pensions
Conflicts of Interest: The AIG Blowup
Conflicts of Interest: The Subprime Financial Crisis and the
Monoline Insurers
CHAPTER 22
Mini-Case: Example of Using the Limit-Order Book
E-Finance: Venture Capitalists Lose Focus with Internet
Companies
CHAPTER 24
Mini-Case: The Hunt Brothers and the Silver Crash
Mini-Case: Program Trading and Portfolio Insurance:
Were They to Blame for the Stock Market Crash of 1987?
Following the Financial News
CHAPTER 2
Foreign Stock Market Indexes
CHAPTER 4
The “Credit Markets” Column
Forecasting Interest Rates
CHAPTER 5
Yield Curves
CHAPTER 11
Money Market Rates
CHAPTER 15
Foreign Exchange Rates
The “Currency Trading” Column
CHAPTER 22
New Securities Issues
CHAPTER 24
Financial Futures
Stock Index Futures
Guide to Commonly Used Symbols
Page Where
Symbol
Introduced
Term
⌬
60
change in a variable
e
48
expected inflation
66
standard deviation
B
d
70
demand for bonds
B
s
70
supply of bonds
C
43
yearly coupon payment
D
91
demand curve
DUR
58
duration
DUR
GAP
578
duration gap
E
352
exchange (spot) rate
(E
e
t
⫹1
⫺ E
t
)/E
t
371
expected appreciation of domestic currency
EM
411
equity multiplier
GAP
574
income gap
i
37
interest rate (yield to maturity)
Page Where
Symbol
Introduced
Term
i
D
370
interest rate on dollar assets
i
F
370
interest rate on foreign assets
i
r
48
real interest rate
P
t
51
price of a security at time t
R
51
return
R
D
371
expected return on dollar deposits
R
F
371
expected return on foreign deposits
ROA
411
return on assets
ROE
411
return on equity
RSA
574
rate-sensitive assets
RSL
574
rate-sensitive liabilities
S
91
supply curve
