Weekly Review Quiz as of 2008-09-18
Finance
Boeing Strike Rattles Key Suppliers
by J. Lynn Lunsford and Daniel Michaels
09/12/2008
http://online.wsj.com/article/SB122116927944324811.html
1. The suppliers of what firm are slowing or stopping production because of a strike at the firm?
a) General Motors
b) Campbell Soup
* c) Boeing
d) Caterpillar
e) Macy’s
Lehman Races Clock; Crisis Spreads
by Susanne Craig, Deborah Solomon, Carrick Mollenkamp and Matthew Karnitschnig
09/13/2008
http://online.wsj.com/article/SB122122951987228067.html
2. Which of the following does NOT seem to be contributing to Bank of America’s reluctance to
buy Lehman Brothers?
a) the Treasury Department looked unwilling on Friday to step in with financial backing
b) write-downs, if high enough, could force Bank of America to raise capital
c) Bank of America figures that rather than buy a damaged company such as Lehman, it would
prefer to bid for a Wall Street titan such as Morgan Stanley or Merrill Lynch should those firms
come up for sale
d) Bank of America lacks the time to analyze the depth and extent of Lehman's souring balance
sheet
* e) Lehman’s stock price has declined 77% this week
Crisis on Wall Street as Lehman Totters, Merrill Is Sold, AIG Seeks to Raise Cash
by Carrick Mollenkamp, Susanne Craig, Serena Ng and Aaron Lucchetti
09/15/2008
http://online.wsj.com/article/SB122139688846233147.html
3. Which two potential buyers walked away from an acquisition of Lehman over the weekend?
a) Merrill Lynch and Wells Fargo
b) J.P. Morgan Chase and Bank of Scotland
* c) Barclays PLC and Bank of America
d) Google and Microsoft
e) Berkshire Hathaway and AIG
4. With these two buyers out of the picture, what appears to be the most likely future for Lehman?
a) the Treasury will buy Lehman
b) Lehman will fund its operations with additional borrowing from the Fed
c) Lehman will sell itself to Dubai International Capital
* d) Lehman will file for bankruptcy
e) Lehman will issue additional equity on Monday
AIG, Lehman Shock Hits World Markets
by Susanne Craig, Jeffrey McCracken, Jon Hilsenrath and Deborah Solomon
09/16/2008
http://online.wsj.com/article/SB122152314746339697.html
5. On Monday, September 15, one day after the U.S. government refused to rescue Lehman
Brothers, the Dow Jones Industrial Average
a) rose 160.39 points
* b) fell 504.48 points
c) fell 103.15 points
d) remained unchanged
e) rose 515.37 points