During the financial crisis of 2007-2009,the collapse of Lehman Brothers and the bailout of Bear Stearns reaffirmed the importance of the fundamental principle of:
A)superior management.
B)globalization.
C)government bailout.
D)regulatory arbitrage.
E)public trust and confidence in the system.

Question

Quizplus · Accepted Answer

The collapse of Lehman Brothers and the bailout of Bear Stearns highlighted the importance of public trust and confidence in the financial system. The crisis showed the devastating effects that a loss of confidence can have on the functioning of financial markets. Therefore, rebuilding public trust and confidence became a crucial objective for policymakers and industry leaders in the aftermath of the crisis.

During the Financial Crisis of 2007-2009,the Collapse of Lehman Brothers