StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

A review and comparison of legislative,regulatory and institutional reform in the US and UK - Essay Example

Comments (0) Cite this document
Summary
The regulation of financial markets and its implications have been a topic of considerable interest among researchers and policy makers for a long time.On the one hand, it is argued that the regulation of financial markets has welfare benefits due to the existence of market imperfections…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.8% of users find it useful
A review and comparison of legislative,regulatory and institutional reform in the US and UK
Read TextPreview

Extract of sample "A review and comparison of legislative,regulatory and institutional reform in the US and UK"

Download file to see previous pages The regulation of financial markets and its implications have been a topic of considerable interest among researchers and policy makers for a long time.On the one hand, it is argued that the regulation of financial markets has welfare benefits due to the existence of market imperfections On the other hand, it is argued that financial market regulation imposes significant costs to an economy that outweighs the benefits (Benston, 1998).It has been argued that the inappropriate regulatory measures combined with many other factors have resulted in the recent economic crisis. Given this, essay examines the regulatory, institutional and legislative reforms in US and UK in the pre crisis, crisis and post crisis periods. The main aim is to compare the reforms in these periods and their impact on the capital markets in US and UK. This essay is organized as follows. Section 2 discusses the theoretical arguments regarding regulation, section 3 discusses the reforms in pre crisis period, section 4 discusses the reforms in the crisis period, section 5 discusses the reforms in the post crisis period and section 6 concludes the essay. 2. Theoretical Arguments Financial market regulation is mainly aimed at correcting market imperfection and ensuring allocative efficiency of resources (Giorgio et al, 2000). Based on these the three main reasons for financial market regulation are identified as (i) ensuring microeconomic and macroeconomic stability (ii) equitable resource distribution and (iii) allocative efficiency of resources. 2.1. ...
ations on integrity requirements etc and other regulations like portfolio investment limits, regulations on off balance activities etc(Giorgio et al, 2000). 2.2.Equitable Resource Distribution Based on the objective of equitable resource distribution, the financial market regulation is aimed at making the markets and intermediaries transparent and to protect the investors (Giorgio et al, 2000). In this regard, the measures include takeovers and public offers regulations, regulations of insider trading, manipulation, price discovery mechanisms, which are aimed at equal treatment, and business conduct rules aimed at non-discrimination etc. 2.3. Allocative Efficiency of Resources Based on this objective, the financial market regulation is aimed at enhancing competition among the financial intermediaries through regulating the competitive structure of the markets as well as regulations of concentrations etc (Giorgio et al, 2000). This view supports competition by arguing that competition helps banks to earn great market share and high efficiency(Demsetz,1973 ). Based on this view, competition and concentration are not in opposite directions. Rather, competition promotes concentration and hence bank efficiency. However, this theory assumes that there are no efficient barriers to entry. According to this view competition increases concentration only if the banks, which have high market share have a special advantage in developing output which are not available to other banks. In such a case, it leads to increased efficiency of the banks, which have this advantage (Demsetz,1973 ). Here, the profits will not be reduced by competition since it will be very difficult for other banks to overcome the superior performance using their inputs. This is because, in this case, it is not ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“A review and comparison of legislative,regulatory and institutional Essay”, n.d.)
Retrieved from https://studentshare.org/law/1430913-a-review-and-comparison-of-legislativeregulatory-and-institutional-reform-in-the-us-and-uk
(A Review and Comparison of legislative,regulatory and Institutional Essay)
https://studentshare.org/law/1430913-a-review-and-comparison-of-legislativeregulatory-and-institutional-reform-in-the-us-and-uk.
“A Review and Comparison of legislative,regulatory and Institutional Essay”, n.d. https://studentshare.org/law/1430913-a-review-and-comparison-of-legislativeregulatory-and-institutional-reform-in-the-us-and-uk.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF A review and comparison of legislative,regulatory and institutional reform in the US and UK

The Trade Union Movement in the UK

Before the ERA 1999, union membership and recognition in the UK were characterized by voluntarism, in which employers and employees could bargain over the terms and conditions of employment without any legal interference. With the statutory system ushered in by the new law, voluntary recognition of unions is no longer allowed and it becomes unlawful for British employers to deny recognition to unions under any circumstances. That conveys the impression that ERA created a radical change in British industrial relations. This paper takes the contrary view, however, and proposes that while the new industrial relations law looks revolutionary in principle, there are no fundamental changes in actuality for the change to qualify as &ldqu...
8 Pages(2000 words)Case Study

How Does the US Media Effects Evolve in Singapores Current Media

Lewis and Slade (2000, p. 223) in their critical evaluation of the effects of media communication on the audience argue that media effect is achieved incongruent with social context. Their study recounts the experiment on the influence of television on identity in Singapore indicates that US social values and Singaporean values greatly differ from each other. The sharp differences in program content have a negative influence on the audience because Chinese raised Singaporeans value marriage, social values, and collectivism whereas US social culture involves career, family and the struggle to balance the two. Therefore the question of US media's influence to destabilize Singaporean national identity is limited. This view is emphasi...
6 Pages(1500 words)Assignment

Infrastructure Application and Review: France

Referring specifically to the country’s water network, Jacobson et al. (1995) notice that ‘although waterworks facilities in France are predominantly government-owned, private firms operate and manage most systems under an array of contracting and leasing arrangements’ (Jacobson et al., 1995, online article). The above study describes the general terms under which the development of infrastructure systems in France is progressing. It should be noticed at this point that in France, the government’s policies regarding the development of infrastructure systems were not always effective – moreover, they were rather limited. Indeed, in a report published by the OECD in 2005, it is noticed that ‘in 19...
9 Pages(2250 words)Case Study

Credit Crunch in the UK

To sell more profitable subprime mortgages, mortgage companies bundled the debt into consolidation packages and sold the debt on to other finance companies. In other words, mortgage companies borrowed to be able to lend mortgages. For example, the lending was not financed out of saving accounts (Mortgage Guide).

These mortgage debts were bought by financial intermediaries. The idea was to spread the risk, but, actually, it just spread the problem. Usually, subprime mortgages would have a high-risk assessment rating. But, when the mortgage bundles got passed onto other lenders, rating agencies gave these risky subprime mortgages a low risk rating. Therefore, the financial system denied the extent of risk in their balance...
8 Pages(2000 words)Case Study

Quality Use of Medicines - Pharmacy Comparison

The pharmacist is also the justice of the peace.

Comparing this pharmacy with the Campbell pharmacy, the Chandler pharmacy is located in a much busier area, hence there are more shops and more people in the vicinity. There are more medically related establishments in the Chandler pharmacy than in the Campbell pharmacy, hence there are more patients buying their medicines in the Chandler pharmacy. Both pharmacies have similar conveniences for their customers. They are located near a bus stop and taxi ranks, and a car park is available within the vicinity of both pharmacies.

The Chandler Kamart pharmacy is a very busy pharmacy with three full-time pharmacists and 8 pharmacy assistants working in one shift. With...
9 Pages(2250 words)Essay

Critical Review of Goth: Identity, Style and Subculture by Paul Hodkinson

The allure from this standpoint is seen by the author. This report measures mainly the methodology that Hodkinson uses, which is grounded theory research, and the report also examines questions of fixed vs. flexible research. The findings of the research are briefly presented before the current research investigation concludes.

The Goth subculture is founded on principles of viewing some of what society outside this subculture, or mainstream culture, views as abhorrent or negative. There is some fetish tendency in this subculture towards the macabre and death, with face-paint style makeup and mourning clothing being prominent features of belongingness, which are certainly not reflective of mainstream fashion and makeup....
6 Pages(1500 words)Book Report/Review

Identification of problems in the Criminal Justice System of the US

They are on trial and will be dealt with fairly. These laws ensure that no one, even if he or she has committed a crime is abused or punished cruelly.
Following the history of civilization like in china, we see the traces of systems for Criminal justice in order to provide safety for the citizens. Evolving through the years laws have been modified and changed to form the system that we know today.
 From its start, the “U.S. criminal justice system” has advocated the idea of “checks and balances”. To avoid dictatorial rule, the people who founded this system in such a way that one person was not given control or authority completely to punish the criminals. The idea of assigning a ‘jury...
6 Pages(1500 words)Assignment

Contrast of Two Explanations of Social Disorder in Contemporary UK Society

As the process of urbanization takes off and more people start residing in major cities, the fissures start to appear within the apparent harmonious co-existence. There are several reasons why disorderly conduct on part of individuals and groups takes place. Sociologists have proposed numerous theories explaining this phenomenon.

Erving Goffman was an astute observer of society, who immersed himself in the social environment which he was studying. He carefully observed and recorded the ways in which people’s behavior and interpersonal interactions are carried out in everyday life. He notes that “people perform their social roles and, as they do so, they produce social order through their actions and the regu...
6 Pages(1500 words)Article

Juvenile Delinquency and Education: A Comparison of Public and Private Education

... in order to counter the influence of gangs. The most prominent questions then seem to be whether private or public schools are more effective in reducing crime? A research into the US problem of juvenile delinquency has important findings and hypotheses. The most common cause of delinquency related to schooling is due to teacher-student conflicts. Labels which are placed onto children confining them usually result in bitterness and frustration, leading to inappropriate behaviour. Resultantly this can be solved if there is a choir available is schooling and institutions. More choices would also entail the availability of private schooling. And it becomes a given that interschool competition requires schools to keep discipline in check...
6 Pages(1500 words)Research Proposal

The Key Macro Factors that Have Influenced the UK Grocery Retailing Industry since the Early 1960s

...1. Assess the key macro factors that have influenced the UK grocery retailing industry since the early 1960s. The concept of organisational change is inherently intertwined with external threats and opportunities, which businesses must adapt to as part of strategic planning to continue long term growth. Senior and Fleming argue that the concept of organisational change has many faces, namely “convergent changes and transformational change that is organisation wide and characterised by radical shifts in strategy, mission values and associated changes of structures and systems” (In Thompson & Martin, 2005, p.41). Moreover, Johnson et al highlight that external macro-economic factors intrinsically impact strategy management and without...
13 Pages(3250 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 Essay on topic A review and comparison of legislative,regulatory and institutional reform in the US and UK for FREE!

Contact Us