This paper attempts to present the need for financial reforms, the analysis of the new reforms. It discusses and analyzes the implications of financial reforms and how US President Obama and his administration going to implement the legislative reforms…
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It has also enacted the Volcker Rule based on the advice of Paul Volcker a former Federal Bank’s Chairman and headed Obama’s Economic Recovery Advisory Board. Although many are skeptical of the features and progress of the new Act, the law is understood to be more stringent on the unregulated trading and risk-taking by the financial corporations. There have 3 major financial reforms in US history preceded by the recessionary phases and accounting scandals. First, the US economy faced the worst financial crisis since the Great Depression in 1929 as a result of which the Glass Steagall Act came into existence in 1933 which legislated the separation of commercial banks from investment banks. Senator Carter Glass was responsible for bringing the Act who believed that the commercial bank’s direct involvement with dealing in corporate securities was a threat to the financial system stability. Since then it has been the topic of research for many economists (Clark, p.205). Second, in 2002 the Sarbanes Oxley Act was signed in the wake of global corporate and accounting scandals such as Enron, WorldCom and Tyco International (Slander, p.1). The Act contains provisions of corporate governance and auditor’s independence and led to the creation of quasi-public agency Public Company Accounting Oversight Board which was responsible for regulating and overseeing the accounting firms as external auditors. Third, the most important reforms, the Dodd-Frank Wall Street Reform & Consumer Protection Act has been enacted in 2010 by President Barack Obama and his administration. The law has led to the creation of two important oversight bodies- Financial Stability Oversight Council and Consumer Financial Protection Bureau. The new Act is considered by many to be based on the Glass Steagall Act. Global Financial Crisis 2007-2010 The Global financial crisis started with the bankruptcy of investment bank Bearn Stearns Inc in 2007 due to heavy exposure to mortgage-backed securities, central to the subprime mortgage crisis. The bank was sold to JP Morgan Chase. Then the collapse of Lehman Brothers, the fourth largest bank in America was followed, which unfolded the global financial crisis. All those financial institutions which had exposures to the collapsed bank’s short-term assets faced the liquidity crunch. The largest insurance firm AIG faced the liquidity crisis in 2008 because its credit ratings were downgraded.
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Obama was born in Hawaii and spend his early childhood in Indonesia and attended Columbia University and Harvard Law School. Later he taught constitutional law at the University of Chicago Law School. Obama served as the State Senator from 13th District in Illinois and also as the United States Senator from Illinois.
However, even though many people, especially the poor view this as fair and welcoming, a chance to receive quality medical care services without digging too deep into their virtually non-existent pockets is not practical. However, insurance companies and medical practitioners feel cheated by this new proposed system.
President Obama Instructor’s name Customer’s name Introduction: Every now and again, there are times when events redefine history and set precedents that generations follow. The idea of a black man leading the charge of the most powerful country in the world would have been ridiculed and ignored not so long ago; however the emergence of Barack Obama has transformed realities and created an incomparable precedent for the world to follow.
The Americans thought process was never the same again and every mind was working of a different mode because of the manganite situation. After the attacks, the American state faced the economic crunches because of the millions of dollars depleted after the attack and the start of the War on Terror which no doubt exhausted the American resources.
During the period of recession, he took few steps to stimulate the economy of the country. Some domestic initiatives takes during his reign were in the form of the Patient Protection and Affordable Care Act. This act is also known as the “Obamacare”. On July 14, 2009 the house of democrats presented a plan regarding the health care system.
The difference this time round is that this promise was made, and the politicians who entered into office made good of their promise to reform the health care system in the US. The Obama administration possessed the political goodwill and ambition to drive the health care reform agenda in the houses of representatives, and through a lot of political lobbying; they were able to pass two critical bills.
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Obama was introduced to the national audience during the 2004 Democratic convention. He rejected the divide in America between “Red States” and “Blue States” saying “there is not a liberal America and a
At least now he has reigned for more than one term and so people can comment on his leadership.
To a great extent, I support the opinion that President Obama is a charismatic and transformational leader who is both extroverted and conscientious as noted by Rubenzer
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