The financial news has been dominated recently by stories of financial institutions that have mis-measured the risk as part of the subprime mortgage crisis. Discuss the role of risk assessment and measurement in the subprime crises and provide examples of both good and bad decisions that financial institutions made before the reform measures were adopted as part of the Dobb-Frank Bill.
Please support answer with a minimum of three quality academic and/or industry references. Ex: Examples of acceptable references include:
The Financial Times
The Economist
The Wall Street Journal
Businessweek
Reuters
Marketwatch
BBC
CNBC
The Journal of Finance
Harvard Business Review