The 1999 repeal of the Glass-Steagall Act by the US Government was a mistake as it allowed US banks to grow too big and take excessive risks leading to the subprime and global financial crises of 2007-2009. True or False? (Word limit 300)
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The 1999 repeal of the Glass-Steagall Act by the US Government was a mistake as it allowed US banks to grow too big and take excessive risks leading to the subprime and global financial crises of 2007-2009. True or False? (Word limit 300)
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- During the 2007-2009 period, the US government made its most dramatic interventions in financial markets since the 1930s. It has been argued that the current crisis could redraw the boundaries between government and markets. For some, “freer and more flexible markets will still do more for the world economy than the heavy hand of government” whereas for others “big banking crises are ultimately solved by early and decisive government action and financial regulation.” Evaluate these positions.You are the Chairman of the Board of Resilient National Bank. Your job is to conduct a critical analysis of how the pandemic will shape the business model of your institution. Your analysis should include how the banking system has evolved in your jurisdiction from 1996- 2021 from a legislative, regulatory, technological. economic, political and social standpoint.evaluate and discuss four reasons why it is necessary to regulate banks, especially within the context of the COVID pandemic.
- Answer the following questions based on the economy of Canada: a) When was the last time the government of Canada bailed out a financial institution and to what extent do you agree with government bailouts of financial institutions? (maximum 400 words) b) In what ways do you think Canada’s financial system has had to adjust to the impact of COVID-19 pandemic? (maximum 400 words)In principle, securitizations are useful because, they allow a bank to transfer the operational risk of liabilities to other banks. they allow banks to recover the principal of the securitized loans immediately. Both the above are correct. None of the above is correct.In the PowerPoint presentation, what did we learn about "shadow banking?" Multiple Choice This market consists of pawn shops, payday check cashing centers, and high-interest rate online lenders like LendingClub and Prosper. The Fed really doesn't do a good job in regulating these types of lenders. This marketplace is illegal and is run by organizations like the Hell's Angels and the Mafia. This is shadow banking. Shadow Banking is simply offshore banks located outside of the U.S. This is the Federal Reserves Bank's super-secret lending program where they lend money to finance CIA orchestrated plans to overthrow foreign governments, counter-terrorist operations, anti-money laundering strike teams, and to catch those involved in counterfeiting.
- In 2008 there was an increase in uncertainty about the quality of structured financial products that were backed by mortgages (MBS - mortgaged backed securities). So that the market for these securities dried up (became less liquid). What policies the government could do to jump start (improve liquidity of) the marketWhich of the following best defines a financial intermediary? a collection of stocks and bonds issued to investors an asset sold by a company which entitles the buyer to partial ownership a claim by a buyer to a future payment by a seller a financial institution that transforms investor funds into financial assetsThis question refers to Figure 1 below (pp. 272). Which of the following countries experienced the largest increase in house prices during the time period represented in the figure, prior to the banking crises?
- Why some economists worry that there could be "moral hazard" risk after US government bailed out Silicon Valley Bank.Contrast the risk tolerance and Liquidity needs for Banks and Individual investorsHow does a bank adjust its pricing of a loan with high default risk? Use average historical cost of funds instead of marginal cost. Add 1.5% to the applicable cost irrespective of the risk level. Add a default risk premium to the applicable weighted marginal cost of funds. None of the above.