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Description - Prudent Lending Restored by Yasuyuki Fuchita

Examining the growth of complex securitized structures in the United States and other markets, the authors provide a timeline of key events and offer an explanation for the resulting financial crisis. They argue that flawed financial engineering and a lack of transparency incentivized risky lending, while credit rating agencies failed to analyze securities. They also examine the reactions of the central banks and provide a survey of crisis-generated litigation through October 2008.

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