2008 Financial Crisis Analysis

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I. Introduction
The cost of the 2008 financial crisis to the economy has remained under-examined, probably because of the difficulty in making related assessment. Many sectors are impacted by this financial crisis at different levels. I believe that banking sector may be most influenced. Over the short term, the financial crisis affected the banking sector by causing banks to lose money on mortgage defaults, interbank lending to freeze, and credit to consumers and businesses to dry up. For the longer term, the financial crisis impacted banking sector by spreading new regulatory actions internationally through Basel III and through the Dodd-Frank Wall Street Reform and Consumer Protection Act in the United States (Investopedia).
As the largest commercial bank in the US, JPMorgan has taken a great deal of criticisms
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JP Morgan was among the eight large banks in US to receive the Treasury Department's initial round of capital investments and received $25 billion of Troubled Asset Relief Program (TARP) funds.
Rob Beck, the speaker from Citi mentioned that, after financial crisis, most of the banks reduced exposures and cut expenses to constrain their losses. They went back to the areas that they were good at to maximize their profits. As a banker, Rob thinks there are too many regulations. The most important problem is not about complying with the regulations; is the dilemma you may experience when there are conflicts between regulations that established by different regulators.
From other perspective, the financial crisis may be a turning point for JPMorgan. JPMorgan is the only large financial institution that posted a profit during the financial crisis Today, JPMorgan has emerged as a front-runner among the survivors of one of the most distressing periods in the financial history, which led to the collapse of many large investment banks and commercial banks (ABC News).
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