Examine the manner in which investment banks previously used leverage to multiply profits and thus endangered the entire global financial system. Determine the role that the 1999 elimination of the Glass-Stegall Act played in the endangerment of the global financial system.
b. Discuss the role of Special Purpose Entities (SPEs) in the fall of Enron. Examine the method in which Enron used SPEs to hide its liabilities. Determine the key reasons why accountants, investors, and creditors found it challenging to determine the real assets and liabilities of the company.