Congratulations to those who took our Credit-Crisis Quiz. Hopefully, you had some fun.

Martin Colodzin is our winner. He'll get a signed copy of Jim Cramer's Mad Money: Watch TV, Get Rich. Thanks to all for playing.

Now, here are the answers.

1. Which of the following quotes cannot be attributed to Reserve Management founder and money market fund creator Bruce Bent just six weeks before his $63 billion Primary money market fund fell below $1 a share?

A. "We are seeing an unnecessary crisis of confidence in today's marketplace."

B. "It's important for investors to be aware of what and with whom they are investing, but at the same time they need to have confidence in the soundness of money market funds."

C. "You only find out who is swimming naked when the tide goes out."

D. "The purpose of the money market fund is to provide safety of principal, liquidity and a reasonable rate of return all the while boring investors into a sound sleep."

Answer: C

Warren Buffett said, "You only find out who is swimming naked when the tide goes out" when discussing falling housing prices in his Berkshire Hathaway ( BRK-A) 2007 Chairman's Letter.

Bent said A, B and D in an Aug. 4 press release billing him as "the world's most experienced money fund manager." In this case, experience didn't count: His fund traded down to 97 cents after revealing it owned $785 million in debt from now-bankrupt Lehman Brothers.

2. Which of the following fallen financial stocks did Bill Miller not own in his Legg Mason Value Trust ( LMVFX) at the end of the second quarter of 2008?


B. Countrywide Financial

C. Freddie Mac ( FRE)

D. Lehman Brothers

Answer: D

Miller had no stake in Lehman Brothers at the end of June, according to the fund's quarterly report. The fund manager, famous for beating the S&P 500 15 straight years, is down 32% in 2008 after stepping on shareholder land-mines, including AIG, Countrywide and Freddie Mac.

3. Match the CEO of the defunct investment bank with his excuse for his firm's demise.

I. Richard Fuld, Lehman Brothers

II. Alan Schwartz, Bear Stearns

III. James Cayne, Bear Stearns

IV. John Thain, Merrill Lynch ( MER)

A. "I don't think the system is protected."

B. "We here are a collective victim of violence."

C. "I will hurt the shorts, and that is my goal."

D. "We just ran into our own hurricane."


I, C. Fuld blamed short-sellers for Lehman's troubles at the bank's annual meeting in April before boldly proclaiming that the worst of the credit crisis had passed.

II, B. Schwartz played the victim card in a March address to Bear employees following the firm's forced sale to JPMorgan Chase ( JPM).

III, D. Cayne blamed the weather for burning Bear Stearns after shareholders approved the $10-a-share price for the deal.

IV, A. Thain said the "system" -- along with short-sellers -- made him sell Merrill Lynch to Bank of America ( BAC) at a September press conference announcing the deal.

4. Former AIG Chief Executive "Hank" Greenberg blamed which CEO for presiding over the company's "virtual destruction of shareholder value built up over 35 years?"

A. Robert Willumstad

B. Martin Sullivan

C. Edward Liddy

D. Maurice Greenberg

Answer: A

Maurice "Hank" Greenberg pointed the finger for his firm's collapse in a letter to then-CEO Robert Willumstad, who replaced Sullivan in June. Sullivan had replaced Greenberg as CEO in 2005 after then-New York state Attorney General Eliot Spitzer accused him of financial misconduct. Liddy was named CEO in the wake of the government's $85 billion bailout.

5. Where are they now? Match the credit-crisis outcast to his or her new home:

I. Ex-Lehman CFO Erin Callan

II. Ex- CNBC anchor Ron Insana

III. Ex-Bear Stearns CEO Alan Schwartz

IV. Ex- Citigroup ( C) CEO Chuck Prince

A. European investment bank Rothschild

B. Credit Suisse ( CS)

C. SAC Capital

D. Xerox ( XRX)


I, B. After being deposed by Lehman's Dick Fuld -- and embarrassed by short-seller David Einhorn -- Callan caught on with Credit Suisse as a hedge-fund consultant.

II, C. Unable to raise assets for Insana Capital Partners, the former CNBC star threw in the towel and joined the ranks of hedge fund billionaire Steve Cohen.

III, A. With Bear Stearns behind him, Schwartz set up shop at Rothschild's New York office.

IV, D. The "music stopped playing" for Prince last November when he was ousted from the top spot at Citi. The fact that he couldn't carry a tune didn't stop Xerox from welcoming him to its board in July.

6. Oppenheimer managing director Meredith Whitney predicted the coming credit crisis in her scathing research reports on banks like Citigroup. Whitney is married to professional wrestler John Layfield, who moonlights as a television stock pundit and is a former contributor to

Which of the following "ring names" has Layfield wrestled under during his career?

A. Bradshaw

B. Blackjack

C. Vampiro Americano

D. Death Mask

E. Answers A and B

F. All of the Above

Answer: F

According to the online world of wrestling, Layfield has had a number of gimmicks since first getting into the ring in 1992. The list above comprises but a few.

7. Short-selling was temporarily banned by the New York Stock Exchange in which of the following companies:

A. General Motors ( GM)

B. General Electric ( GE)

C. General Dynamics ( GD)

D. All of the above.

E. Answers A and B.

Answer: E

The NYSE extended the Securities and Exchange Commission ban on short-selling to 30 additional companies with financial-services operations, including GE and automaker GM. Despite Treasury Secretary Paulson's frequent use of his "bazooka" to solve Wall Street's woes, weapons manufacturer General Dynamics is not protected.

8. Name the sovereign wealth fund that rejected Lehman's pleas for a multibillion-dollar lifeline just before it collapsed:

A. Abu Dhabi Investment Authority

B. Government of Singapore Investment Corp.

C. Kuwait Investment Authority

D. Mizuho Corporate Bank

E. Korea Development Bank

Answer: E

The Korea Development Bank failed to come to terms with Lehman "because of a disagreement over conditions of a transaction and considering domestic and foreign financial market conditions." The rest, as they say, is history.

9. According to Greenlight Capital's David Einhorn, how many times did Lehman Brothers then-CFO Erin Callan use the word "strong" during the company's first-quarter conference call in March?

A. 12

B. 15

C. 20

D. 24

E. Never said "strong," but said "Einhorn sucks" a few times.

Answer: D

In a May 21 charity event, short-seller Einhorn questioned Lehman's accounting and Callan's veracity. Said Einhorn: "On the conference call that day, Lehman CFO Erin Callan used the word 'great' 14 times, 'challenging' six times; 'strong' 24 times, and 'tough' once. She used the word 'incredibly' eight times."

10. Lehman Brothers' board of directors did not include which of the following in 2008:

A. "Dr. Doom"

B. Theater producer

C. Retired naval officer

D. Ex- Halliburton CEO

E. Hollywood actress

Answer: E

Actress Dina Merrill left Lehman's 10-member board in 2006 at the age of 83. Economist Henry Kaufman was known as "Dr. Doom" for his bearish economic policies. Roger Berlind produced Brodway shows, Marsha Johnson Evans was a rear admiral, and Thomas Cruikshank ran Halliburton before joining Lehman's august executive body.

Bonus Question!:

The U.S. government now sponsors which European soccer team as a result of its bailout of AIG:

A. Liverpool

B. Arsenal

C. Bayern Munich

D. Manchester United

Answer: D

Manchester United is now America's team. AIG signed a four-year, $100 million sponsorship deal with the team in 2006. Whether the Red Devils change the logos on their jerseys to a U.S. dollar sign remains to be seen.

Before joining, Gregg Greenberg was a writer and segment producer for CNBC's Closing Bell. He previously worked at FleetBoston and Lehman Brothers in their Private Client Services divisions, covering high net-worth individuals and midsize hedge funds. Greenberg attended New York University's School of Business and Economic Reporting. He also has an M.B.A. from Cornell University's Johnson School of Business, and a B.A. in history from Amherst College.

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