A risk manager at a financial institution is preparing a webinar presentation on the topic of the great financial crisis of 2007–2009. The manager wants to include a description of several market events that occurred involving large financial institutions during the subprime mortgage crisis. Which of the following events happened during the peak of the subprime crisis?

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Fannie Mae and Freddie Mac were nationalized by the US government.

Long-Term Capital Management (LTCM) was acquired by a consortium of banks after losing most of its capital.

A large financial institution purchased part of Lehman Brothers and thereby prevented Lehman from being forced to file for bankruptcy.

Citigroup was converted to a bank holding company and became regulated by the Federal Reserve.

Financial Risk Manager Part 1