Case | HBS Case Collection | June 2011

Fighting a Dangerous Financial Fire: The Federal Response to the Crisis of 2007-2009

by David Moss and Cole Bolton

Abstract

By the summer of 2009, many observers concluded that a catastrophic financial collapse- which seemed all but imminent the previous fall and winter - had been averted. Although the recession had still yet to be declared over and the economy's footing remained far from solid, many believed that the worst of the crisis was over. With the global financial system no longer spiraling into an abyss, government officials, business leaders, and American taxpayers could now take stock of where they had been and where they should be headed. In particular, many wondered how the disaster had happened in the first place: what exactly had caused the brutal financial crisis of 2007-2009?

Keywords: Business Cycles; Economic Slowdown and Stagnation; Financial Crisis; Financial Institutions; Financial Markets; Financial Strategy; Policy; Knowledge Acquisition;

Citation:

Moss, David, and Cole Bolton. "Fighting a Dangerous Financial Fire: The Federal Response to the Crisis of 2007-2009." Harvard Business School Case 711-104, June 2011.