CAN THO UNIVERSITY
COLLEGE OF ECONOMICS
♣♣♣♣♣♣♣♣♣♣♣

ENGLISH FOR FINANCE AND ACCOUTING
UNIT 4

ACCOUTING FOR BANKS
Instructor: M.A Pham Lan Anh

Can Tho, April 2018



NAMES

ORDER
NUMBERS

CHARACTER

Huỳnh Hoàng Mỹ Uyên

1

ALICE/MC3

Huỳnh Ngọc Ánh

8

LAURA/Economist

Nguyễn Ngọc Cẩm

9

LOUISA/MC2

Nguyễn Thị Kiều Nhung

11

STELA/Economist

Huỳnh Thị Tuyết Oanh

12

AMANDA/people

Trần Thu Thảo

42

SELENA/MC1

NOTES


MC1:

Welcome to the economic talk show. Today's theme is "10 years from the US financial crisis
in general and the US banking system in particular" Today we have two guests, Mrs Claura
and Mrs Stela, to discuss and analyze the topic today
-MC2: It has been 10 years since the financial crisis of the United States between 2007
and the end of 2008
. As we all know, the financial crisis of 2007 in the United States has led to has led to
many bad consequences for the banking system in the US and other major financial
institutions around the world
. The financial crash culminated in October 2008 when even the giant and long-standing
banks that had survived past financial and economic crises, such as Lehman Brothers,
Morgan Stanley, Citigroup, AIG, ... also crash. Credit crunch appears to make the real
economy of the United States difficult
MC3: According to the evidence and the data collected
In the first quarter of 2008, US GDP grew by 0.9%, then rose sharply to 2.8% in the
second quarter. economic difficulties and widespread financial crisis, US GDP grew by
0.5% in the third quarter of 2008.
With negative growth in the third quarter and the fourth quarter of 2008, the US economy
has officially fallen into recession and this is also the first time GDP of this country has
negative growth in two consecutive quarters since the decline in the fourth quarter 1990
and the first quarter of 1991.
In the period from 2005 to 2008, the US economy went against the previous period,
meaning that GDP declined year by year and reached a "bottom" of 1.1% in 2008

In Asia, markets have fallen sharply from 40.7% to 65.9% - along with the trillions of
dollars evaporated from the market.
South Korea's KOSPI had the lowest drop (-40.7%), while the VN Index of Vietnam,
Shanghai Composite Index of China fell the most with a decrease of more than 65% of
the value. with the markets included in the comparison.



Japan's Nikkei 225 dropped 42.1% - the sharpest drop since 1990 (-39%).


MC1: Recognizing the past crisis. Sir, can you let us know at what time the US
government has come up with recovery solutions, relief packages to help debug the
banking system at that time?
-STELA: When the banking crisis broke out, the US government introduced supportive
policies through open market operations, the open-market lending program, and the
government's rescue package great.
-In the United States, two agencies were formed to buy real estate loans from banks and
refinance banks Freddie Mac and Fannie Mae. Banks in the United States also mobilized
mainly short-term money. After the real estate loan, the banks can repack and transfer to
the two organizations to be refinanced or sold to them. These two institutions are
involved in the bond market for a very long time, dealing in such debts, collecting money
and using that money to refinance commercial banks
-STELA: the government enacted a program called TARP. the troubled assets relief
program, and which the rest of us
Call the bank bailout, this initially earmarked $700 billion to shore up the banks it actually
ended up spending $250 billion bailing out the banks in combination with lending
by the FED, this help stop
the cascade of panic in the financial system.
The treasury also conducted stress tests on the largest Wall Street banks this eliminated
some of the uncertainties that had paralyzed lending among
Insituions.
-MC2: It has been years since the crisis
According to Mr. B, what do you think of the recovery process of the US banking system
after the bailout programs of the above-mentioned government bank?


-LAURA: In the US, five years after the financial crisis, the world's number one

economy has not fully recovered. According to AP, this is the slowest recovery since the
Great Depression of the 1930s. In 2009 alone, 140 US banks were wiped out, GDP
growth also negative 2.8%. The fight to raise public debt ceiling in 2011 also made the
United States for the first time lowered the credit rating
However, until recently, the US economy has some signs of optimism. The country grew
2.8% last year, higher than the pre-crisis period of 2006 (2.7%). Corporate and
investment confidence in the second quarter of 2013 has improved. The housing market
is warming, and the stock is also set a record for several months ahead of optimistic data
from the economy. The US budget in June was the highest in five years and the
unemployment rate also dropped significantly from nearly 10% at the end of 2010.

-MC2: To cite the current situation of the bank system objectively we have had some
random interviews from the people who are present at those banks to see if they are
aware
What since the economic crisis.
-AMANDA: I feel that since the economic crisis of 2007, the government has introduced
many economic improvement policies. Life as well as economic has gradually recovered to
much today. At the moment, we feel much more secure in the previous stage. We do not
worry much about economic issues. Moreover, I see that banks now have many policies for
us to choose, I am completely secure when sending money to banks. About interest rates,
really attractive. Economic stability and development today. It is also an opportunity for
both me and the bank. However, i think even though the economy is much more stable,
there are still some potential risks. Therefore, some bad cases in the bank are broken.
Bankers can not afford to pay principal as well as interest to customers. And with the
bankruptcy of some banks time ago I was afraid. That's why I do not dare send a huge
amount of money into the same line. I think I have to split the money and send it to different
banks to minimize the risk.
-MC2: From the negative implications that the financial crisis has caused, what do you
think is the main cause of the crisis?
-LAURA: Well, one key factor that led to the 2008 financial

crisis was perverse incentives. the government failed to regulate and supervise the financial
system. but the thing
To remember about this massive systemic failure is that it happened in a system made of
humans with human failing. some didn't understand what was happening,
Some willfully ignored the problems and some were
simply unethical motivated by the massive amounts of money involved


-MC1: It has also been 10 years since the crisis and the banking system is now on track
to progress from the lessons learned after the crisis. true that
A pretty expensive lesson for smart investing ...
-MC 2: Thank you for watching and listening to CNN's economic talk show. See you on
the next talk show