Nobody downloaded yet

The regulatory intervention that took place in the US post 2008 crisis - Assignment Example

Comments (0) Cite this document
Summary
Table of Contents Abstract 2 Introduction 3 Causes of the 2008 Crisis 4 Dodd – Frank Act 5 Advance Warning System 6 Too Big to Fail Bailout 7 Dichotomy: Big Brother versus Invisible Hand 8 International Perspective: G20 10 Japan 10 Germany 11 Recommendations and Lessons Learned 12 Conclusion 13 References 14 Abstract Consequences of the 2008 crisis were enormous…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.7% of users find it useful
The regulatory intervention that took place in the US post 2008 crisis
Read TextPreview

Extract of sample "The regulatory intervention that took place in the US post 2008 crisis"

Download file to see previous pages There is a dichotomy between investor protection on one hand, and the need to have a government that does not interfere too much with the economy. The President Obama ended the era of investor protection enacted by President Roosevelt. As a result, uncertainty in the markets is created. Moreover, international companies bear the brunt of their presence in the United States. However, this act focuses more on systemic risk than its equivalents in other countries, such as Japan and Germany. As a result, the United States complies more rigidly with some of the G20 recommendations than other countries. Introduction Until 2007, the world experienced low inflation levels, high growth and an increase in international trade and movements of capital.1 Then in 2007, the housing markets started to collapse, as lenders began to default on their mortgages. However, soon defaults spread across other parts of the financial industry and in 2008, the United States entered a crisis whose consequences are still felt today. The crisis spread globally, as many foreign banks invested in the American financial industry. 2 Consequences of the crisis were enormous. ...
f the causes of the crisis being in the housing market and the ability of the housing market collapse to spread to other markets, and eventually affect the real economy as well. In short, due to such interconnectedness, there are multiple explanations of causes of the crisis: over borrowing and securitization of mortgages, inadequate financial regulatory structure and failure to properly foresee possible problems that might arise from recent financial innovations are main causes of the 2008 crisis. Though the Dodd – Frank Act (Act) was passed to address the 2008 crisis and prevent a future crisis of such a magnitude, the Act creates instability on the markets, and fails to address properly the international nature of the crisis, which will be further elaborated on in the paper. Causes of the 2008 Crisis As Reinhart and Rogoff put it, there was a lull in defaults, globally and domestically, before the 2008 crisis took place.4 However, the two authors note that the last lull was the deepest in the last two centuries of the American history. 5 The regulators created a weak regulatory system. Between 1990 and 2006, housing prices increased to an average of four times the yearly income of an average family two or three times previously.6 High housing prices led to high demand for construction workers, remodelling and real estate services. Moreover, the repeal of the Glass-Steagall Act in 1999 enabled banks to engage in investment banking, while banks could also act as insurers. Mortgage – backed securities were invented and sold freely. 7 In 2000, the Commodity Futures Modernization Act deregulated the derivatives market, which was used by banks to increase liquidity. 8 Risky homeowners were encouraged by the Clinton administration to acquire expensive homes, despite ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The regulatory intervention that took place in the US post 2008 crisis Assignment”, n.d.)
The regulatory intervention that took place in the US post 2008 crisis Assignment. Retrieved from https://studentshare.org/business/1402271-discuss-the-regulatory-intervention-that-took
(The Regulatory Intervention That Took Place in the US Post 2008 Crisis Assignment)
The Regulatory Intervention That Took Place in the US Post 2008 Crisis Assignment. https://studentshare.org/business/1402271-discuss-the-regulatory-intervention-that-took.
“The Regulatory Intervention That Took Place in the US Post 2008 Crisis Assignment”, n.d. https://studentshare.org/business/1402271-discuss-the-regulatory-intervention-that-took.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The regulatory intervention that took place in the US post 2008 crisis

Regulatory Interventions in the 2008 US Post-Economic Crisis

...?Regulatory Interventions in the 2008 US Post-Economic Crisis Outline I. Introduction II. Local Financial Market and Global Economic Background Before the Recession a. About 30 Years of Financial Deregulation b. Global Trade Imbalance c. Stock Market Risk Mismanagement d. Unsustainable Government Policies? III. USA’s Regulatory Response to the 2008 Recession a. Stimulus Funds for the American Recovery and Reinvestment Act (ARRA) b. Common Regulatory Measures Implemented c. Dodd-Frank Act d. Financial Reform Bill 2010 IV. Positive Impact of the Regulations Towards Economic Recovery a....
16 Pages(4000 words)Assignment

Discuss the regulatory intervention that took place in the US post 2008 crisis choosing a topic from FRANK-DODD ACT 2010

...regulatory body. This act was approved in 2010 and became effective from 22nd July (Braybrooke 19). This legislation was put in place of all the financial activities within the States and also non-US banking organization firms. The main features in the legislation included maintenance of financial stability by creating a council which is given the mandate to overlook on the activities in the financial system. It also gives the Federal Deposit insurance Corporation to be able to control the firms which are failing by protecting the counterparties which leads to the losses incurred by the counterparties and shareholders.5The Dodd-Frank act also enables the consumer protection by putting up...
12 Pages(3000 words)Research Paper

Discuss the regulatory intervention that took place in the US post 2008 crisis

...? Discuss the regulatory intervention that took place in the US post 2008 crisis Table of contents ............................................................................................................................3 Introduction………………………………………………………………………...........4 Potential Reasons leading to the financial crisis……………………………….............5 Advantages and disadvantages of the crisis…………………………………………….7 Regulatory Interventions…………………………………………………………………9 Dodd-Frank Wall Street Reform……………………………………………………….10 Dodd-Frank Wall Street...
14 Pages(3500 words)Assignment

Financial crisis regulatory

...in strengthening bank capital requirements and has introduced now controls on bank liquidity. Studies indicate that the Basel III activities have decreased the annual GDP growth by 0.2% (Gregoriou, 2009 p. 62). However, critics argue that this model fail to offer the urgent intervention that the world needs in order to recover from the late 2000s crisis. Furthermore, economist identify that the Basel III procedures are likely to increase the incentives of banks in the context of the regulatory framework. This has the potential of affecting the stability of the financial regulation systems leading to worse crisis in the future (Gregoriou, 2009 p. 30). On August 2012, the...
8 Pages(2000 words)Essay

Financial Crisis of 2008

...laws expansion, and bailouts (Magdoff and Bellamy 72). The US financial crisis left many shocked because it severely affected their lives. The crisis ended in late 2008 and the beginning of 2009 in the US when the congress enacted the recovery and reinvestment Act of 2009. After viewing the two movies, “Too Big to Fail’ and the “Margin Call” it is clear that the US financial crisis began in the housing industry specifically in the mortgage market known as subprime, which spread to prime mortgage, and other types of debts that mortgage firms in the US faced. The movie “Too Big to Fail” clearly shows the...
8 Pages(2000 words)Research Paper

The US financial crisis of 2008

...The US financial crisis of 2008 The US financial crisis was a process and not an event. Signs of fragility in the financial sector were present from 2007. This continued and a tipping point reached in September 2008, when a number of large financial institutions based in the US collapsed. The most notable examples were the Lehman brothers and AIG (Marshall 1). As from 2007, maintaining financial stability, rather than taming inflation was the Federal Reserve's main goal (Jickling 1). Although the Federal Reserve tried to manage the emerging crisis, the issues present were so complex, such that they...
5 Pages(1250 words)Essay

Crisis Intervention

...Crisis Intervention Crisis Intervention The victim of an assault incident may develop suicidal thoughts due to trauma anddepression (Petrak, 2003). Sandra developed suicidal thoughts due to the depressive disorder and posttraumatic stress disorder she was experiencing. These thoughts involved taking a bottle of Tylenol and making superficial cuts on her body. This has drained away her trust in herself and suicide would be the final remedy to the problem. Counselors working with victims of sexual assault often encounter suicidal thoughts in their clients. The counselor is forced to assess and determine the persistence of the suicidal thoughts in their clients as an intervention. Sandra had identified the means to commit suicide... thoughts....
2 Pages(500 words)Term Paper

Crisis Intervention

...services (Irving, Adams, & Rice, 2006). Various models of crisis intervention have been developed in an attempt to meet these demands being made to community resources (Irving, Adams, & Rice, 2006). Mobile crisis intervention teams are one response (Irving, Adams, & Rice, 2006). In-patient crisis intervention facilities are another option. These short-term, drop-in, residential crisis intervention facilities are intended to intervene early and return the individual to the community (Hobbs, 1984). Compton, Esterberg, McGee, Kotwicki and Olivia (2006) used a...
15 Pages(3750 words)Term Paper

Initial writing assessment

2 Pages(500 words)Essay

Crisis Intervention

...the adaptive function. Crisis intervention strategies and programs must be capable of addressing the emotional reactions such as anxiety, shame, grief, horror, and difficulties in falling asleep (Cavaiola & Colford, 2010). Traumatic incidents may lead to numbness and feelings of isolation due to sense of despair and hopelessness. Critical traumatic incidents may lead to severe psychological disorders such as drug and alcohol abuse, acute stress disorder, panic attacks and post traumatic stress disorders (Cavaiola & Colford, 2010). The initial step will involve conducting a biopsychological and crisis assessment that will determine the suicide risk and ability of the...
1 Pages(250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic The regulatory intervention that took place in the US post 2008 crisis for FREE!

Contact Us