Global investment banks' balance sheet exposures led to devastating credit crunch.
The article looks at how the 2007-8 crisis affected investment banks by focusing on their balance sheets. It shows that the crisis was caused by a mix of the subprime mortgage crisis and a credit crunch. By studying data from major US banks, the researchers found that high leverage and liquidity issues played a big role in the crisis. They compared Goldman Sachs and Lehman Brothers to see how their balance sheets were affected during the crisis.