Financial Markets and Institutions 5th Edition by Saunders, Anthony
By: Saunders, Anthony; Cornett, Marcia
Publisher: McGraw-Hill Higher Education
Print ISBN: 9780078034664, 0078034663
eText ISBN: 007747645X
Edition: 5th
Copyright year: 2013
NEW FEATURES
Key changes to this edition include the following:
? Discussion of the 2008?2009 fi nancial crisis has been added throughout the book.
Virtually every chapter includes new material detailing how the fi nancial crisis affected
risk management in fi nancial institutions.
? Appendix 1A describes events leading up to the fi nancial crisis, events occurring at
the peak of the crisis, and events associated with the aftermath of the fi nancial crisis, including
changes to fi nancial institutions, the impact on U.S. and world economies, federal
fi nancial and fi scal rescue efforts, and regulatory changes.
? Major changes proposed and implemented for the regulation of fi nancial markets and
institutions are included where appropriate throughout the book.
? New boxes highlighting ?Notable Events from the Financial Crisis? have been added
to chapters throughout the book.
? New end-of-chapter problems have been included in several chapters.
? Chapter 4 includes much discussion of the actions taken by the Federal Reserve and
other international central banks during and after the fi nancial crisis.
? Chapters 5 through 10 highlight the effects of the fi nancial crisis on various fi nancial
markets and include discussions of the freezing of the commercial paper markets, the
municipal default crisis, the mortgage market meltdown, and the role of credit derivatives
in the fi nancial crisis.
? Chapter 7 reviews the process that led to the conservatorship and proposed dismantling
of Fannie Mae and Freddie Mac.
? Chapter 13 provides a synopsis of the Wall Street Reform and Consumer Protection
Act of 2010 and the new deposit insurance coverage and premium rules, as well as an
examination of the FDIC?s attempts to deal with the liquidity crisis, a discussion of the
TARP Capital Purchase Program and stress tests on the major commercial banks in 2009,
and a review of the new international capital standards being implemented for depository
institutions worldwide.
? Several chapters include discussions of major fi rms that have been lost or dramatically
altered as a result of the fi nancial crisis (e.g., the failure of Bear Stearns, Lehman
Brothers, and AIG; conversions of Goldman Sachs, Morgan Stanley, GMAC, and CIT
Group to bank holding companies; the failure of Primary Reserve Money Market Funds;
and the failure of CIT Group).
? Chapters 22 through 24 discuss the role of derivative securities in the fi nancial crisis,
including the roles of swaps (especially credit default swaps), collateralized mortgage,
and collateralized debt obligations (CMOs and CDOs).
? Tables and fi gures in all chapters have been revised to include the most recent data
available.
