Bank Of America Financial Analysis

The global economic crisis 2008-2010 has significantly changed the worlds business environment. We can even claim that the world will never be the same as it had been before the crisis. At first, lets say a few words about the reasons and the essence of the crisis. The crisis was caused by the speculations on financial markets and the collapse of the worlds credit system that was triggered off by the non-repayment of mortgage loans. The U.S. mortgage crisis originated with a dramatic expansion in the availability of mortgage credit, and substantially higher individual leverage, through subprime lending and aggressive mortgage terms. Lenders, prompted by lower interest rates, rapidly rising home prices, and large amounts of foreign investment capital seeking higher yields, made credit available to borrowers who could not previously have qualified for a mortgage or extended far more credit than proved to be prudent by departing from historical practice in several ways (Moynihan). Starting from the financial sphere the crisis has damaged also the real economy. The industries that were harmed by the crisis are engineering, metallurgy, real estate sector and others. After these spheres the crisis affected the social sphere and the worlds society, in general. A