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Question: The 2007-2009 financial crisis, also known as the subprime mortgage meltdown, had profound impacts on financial institutions and markets worldwide. As part of a webinar presentation, a risk manager at a financial institution aims to highlight several critical market events that involved major financial entities during this period. Which of the events listed below occurred at the peak of the subprime mortgage crisis?
A
Fannie Mae and Freddie Mac were nationalized by the US government.
B
Long-Term Capital Management (LTCM) was acquired by a consortium of banks after losing most of its capital.
C
A large financial institution purchased part of Lehman Brothers and thereby prevented Lehman from being forced to file for bankruptcy.
D
Citigroup was converted to a bank holding company and became regulated by the Federal Reserve.