World Financial Crisis Requires Regulation of Entire Financial System

One of the primary factors that can be attributed as to have led the recent financial crisis is the financial deregulation allowing financial institutions a lot of freedom in the way they operated. The manifestation of this was seen in the form of:

Firstly, the Dodd–Frank Act pushes forward the reformation of America's financial regulatory system. Several new regulatory authorities are set up to enhance the government supervision and administration of the industry. The Financial Stability Oversight Council is established to identify material risks to financial stability, with the support from Office of Financial Research. Moreover, Fed is entitled to exercise additional superintendence beyond banks.

Anheuser-Bush Corporate Governance Charter (AB InBev, 2021) the corporate governance charter is a comprehensive document prepared by the organization with covers the company's expectations for ethical conduct at all levels of the organization.

Blyth starts his deliberation off with a chapter on America and Europe. He discusses how America was too big to fail and how Europe was too big to bail. He analyses the reasoning as to why the whole world needs to be austere. Blyth explains that austerity is a means to reduce moral hazard. In the early 2000s, Alan Greenspan eased regulatory control in the American Treasury system. In doing so, it allowed for the introduction of new instruments of lending. These instruments can be described as derivatives. After the deregulation within the financial system, the financial banks decided to do what it liked. Blyth depicts what were the causes of the financial disaster were and continues to explore the repercussions of the post Lehman Brothers trauma.

One of the principal functions of the Federal Reserve in achieving this goal is to regulate and supervise various financial entities. It performs this function, in part, through microprudential regulation and supervision of banks; holding companies and their affiliates; and other entities, including nonbank financial companies that the Financial Stability Oversight Council (FSOC) has determined should be supervised by the Board and subject to prudential standards. In addition, the Federal Reserve engages in “macroprudential” supervision and regulation that looks beyond the safety and soundness of individual institutions to promote the stability of the financial system as a

On 4th February 2013 the Financial Services (Banking Reform) Bill (the Bill) was introduced to Parliament. This Bill has sought to implement the ring-fencing proposals of the UK Independent Commission of Banking (ICB), which is also known as the Vickers report. The Bill also represents the UK’s response to wider international calls to structurally reform banks, such as the Liikanen reports’ proposals on reforming the structure of the EU banking sector .

The only thing you have to fear is fear itself” -Franklin D. Roosevelt. For Roderick Usher fear in itself is worse than whatever he actually fears. The story is set in the Usher family’s old isolated run down home, Roderick Usher finds himself surrounded by phenomenon which skewed his perception of reality. Roderick could not properly develop due to his state of seclusion, which eventually drives him mad. He calls on his long lost friend who he hasn’t seen since childhood to help him deal with his emotions. The elements that Edgar Allan Poe demonstrate throughout “The Fall of The House of Usher” help exhibit the theme that fear and isolation leads to madness, and human interaction is important to maintain your sanity.

However, Bernanke admonished investors by the book that even though banking regulation and supervision protect investors as always, if some particular events or financial crisis happened, like housing bubble and mortgage markets crisis, either or both of these two system work. The example in the book is booming house prices in 2000s. After the sharply increasing of housing prices, risky mortgage lending likes subprime lending trouble began surfacing in 2006 and 2007. The risky mortgage comes with more demand for housing, which will again push the housing prices higher and higher, reinforcing a vicious cycle. As a result, because of the nominate housing price is much higher than the real price, the careful lenders who have good credit step out the market, the rest of borrowers are subprime lenders, “some borrowers were defaulting on loan after making only a few, or even no, payments.” (318) In the book, Bernanke conceded that Fed responded the trouble slowly and cautiously. When Board in Washington determined to make supervision of bank more centralized, he still overconfidently believe that Reserve Bank staff were better informed about condition in their districts. Another Bernanke’s conceit is that the financial regulatory system was not as stable and comprehensive as he thought before the financial crisis. In

The general objective of this policy paper is to deeply understand the latest and most influential financial reforms and the current financial environment in U.S through relatively comprehensive analysis with regard to the Dodd-Frank Act. In doing so, I move forward to provide some suggestions on improving the relevant legislature.

This paper will address the government policies in place that lead to the deterioration of lending standards, and the cycle being fueled by the practice of securitization, and thus resulting in the subprime mortgage crash.

During the recent financial crisis, a number of banks were bailed out with public funds because they were considered "too big to fail". The level of state support was unprecedented1. While this may have been necessary to prevent widespread disruption to the financial markets and real economy, it is clearly undesirable for taxpayers' money to be used in this way at the expense of other public objectives. In the future, the financial system must be more stable and banks must be permitted to fail in an orderly manner, so that government bail-outs are not needed.

Please summarise a recent event or development relating to local, regional or global activity that impacts our Investment Banking business. (150 words) *

The purpose of this paper is to show that the “regulatory capture” has played a role not easily measurable in causing the global financial crisis. To illustrate this, the first step will to describe the “regulatory capture” in its three possible qualifications; then, I will explain, providing some examples, how each of these categories played a possible role in posing the basis for the financial crisis. While illustrating the different forms of capture I will present some questions that leave space to different answers. Finally, I will conclude that the regulatory capture have surely played a role in generating the crisis, but it is not possible to evaluate the effective role it had in causing it.

Before the advent of the Federal Deposit Insurance Corporation (FDIC) in 1933 and the general conception of government safety nets, the United States banking industry was quite different than it is today. Depositors assumed substantial default risk and even the slightest changes in consumer confidence could result in complete turmoil within the banking world. In addition, bank managers had almost complete discretion over operations. However, today the financial system is among the most heavily government- regulated sectors of the U.S. economy. This drastic change in public policy resulted directly from the industry’s numerous pre-regulatory failures and major disruptions that produced severe economic and social

This weeks unit covered the different thoughts on economic stabilization; Keynesian and Neo Classical, as well as money and its role with banking. It explained the main foundation of Keynesian is that the price is mainly stationary while the aggregate demand is what will cause growth or recession. It views aggregate demand being influenced by; consumption, investments, government spending, and net exports. The supply and price is set by how much of a product is desired by the market and in times of recession government spending should be used to stabilize and stimulate economic growth. Neo classical on the other hand believes in looking at the long run and does not believe in focusing on short term problems such as recess, as these will naturally work themselves out. Neo Classical sees no benefit to inflation and puts more emphasis on the supply curve as a primary factor as to what determines aggregate demand. Lastly, money is the primary means of currency to trade goods and services to avoid needing a “Double Coincidence of wants”. The banks primary job is to act as a giant money pot where people put money they want to save for later into and they by allowing someone else to use that money in the mean time, understanding that individual will pay the money back. Banks act as the middle man and control factor of saving and borrowing of currency on a macroeconomic level. A banks “balance sheet” also known as “T account’ shows the overall health of the bank by