Essay on FIN364 Course Project Summary 1

To do this project, you should do research that enables you to understand the following terms and concepts:

Choose one (1) of the topics from the list of topic choices below. Read the topic carefully. Write a three to four (3-4) page paper (750-1,000 words) that responds to each of the items described in the topic.

The project will reflect your views and interpretation of the topic. This project is designed to help you

Possible sources and research strategies. Make a note of keywords or search terms that you use to conduct your research. Also include title/author/weblink of possible sources that you may incorporate in your essay. Add a brief comment to help you remember what the article was about. This is a running list.

-Martin Industries just paid an annual dividend of $1.30 a share. The market price of the stock is $36.80 and the growth rate is 6.0 percent. What is the firm's cost of equity?

Find 5 sources that you will use in your research paper. Paste the URL, the MLA citation, and the text of the article (at least the sections that you think will be useful when writing your essay) all on this document. Two of the sources should come from the databases.

Q. 1. What were the major factors that led to the recent financial crisis? How did we get here?

In this assignment students are required to clearly state and introduce their research topic, indicates clearly the two variables of interest, and present the theoretical framework with key variables. The task is also requesting that learners explained the following components linked to their selected subject: the background of the problem, the need for study, and provide the educational and practical significances of the proposed research.

In order to carry out this assignment research will have to be collected this will come from a number of sources including the following:

-2. The background of the financial crisis.—what kind of monetary policy the federal reserve made?

Importance- Explain the importance of studying your topic. Why should we care? What is the relevance in terms of current academic study? What do current researchers/professors say about your topic? This section should include references to research that you have done during the course of this class. Be specific. Include in-text citations (MLA) or footnotes (Chicago).

Alexander Hamilton proposed using a banking system in America in 1781 after seeing how beneficial they were in other nations for advancing trade. In 1791, First Bank of the United States became the first commercial bank of the United States in Philadelphia, Pennsylvania. By the 1900’s, there were almost 170 banks per every million people in the United States, but because of this, there was a lot of debate about banking and the regulations needed and the fears that people had about the amount of control it was giving the government. This paper will be starting from the Great Depression and talk its way into the current situation of the United States banking regulations and why there is a debate on if there should be more or fewer regulations on banking.

Technological advancement has had a gigantic effect in the banking industry. Over the past few decades, the financial services industry has changed considerably with banking transforming from the pen and paper method to the computers and internet method. The pen and paper method took weeks or even months for the transaction to be eventually completed, and then the dramatic introduction of the computer and internet method which changed that time frame to only a matter of seconds to be completed, which reduced the amount of time and labor needed to complete a transaction significantly. Banking is considered one of the most important economic sectors with it being severely influential and responsive to any little change, whether it is domestic or international. Some extreme changes that were brought about by the development of this new technology turned into a globalized nature for the financial services industry. One stroke of a key on a computer could and would change a person 's life extensively or even have a global impact. The new technologies that were created and introduced changed how the consumers managed their money from that time on. Technology has helped to protect peoples’ hard earned money and make it much more impossible for people to be able to write out bad checks or even holding up a bank. The advancement in technology however, also came with some security risks as most things do, that could affect the money that people trusted with the bank and

This chapter is about the background of 2007-2008 financial crisis. The 2007-2008 financial crisis has a huge impact on US banking system and how the banks operate and how they are regulated after the financial turmoil. This financial crisis started with difficulty of rolling over asset backed commercial papers in the summer of 2007 due to uncertainty on the liquidity of mortgage backed securities and questions about the soundness of banks and non-bank financial institutes when interest rate continued to go up at a faster pace since 2004. In March 2008 the second wave of liquidity loss occurred after US government decided to bailout Bear Stearns and some commercial banks, then other financial institutions took it as a warning of financial difficulty of their peers. In the meantime banks started hoarding cash and reserve instead of lending out to fellow banks and corporations. The third wave of credit crunch which eventually brought down US financial system and spread over the globe was Lehman Brother’s bankruptcy in August 2008. Many major commercial banks in US held structured products and commercial papers of Lehman Brother, as a result, they suffered a great loss as Lehman Brother went into insolvency. This panic of bank insolvency caused loss of liquidity in both commercial paper market and inter-bank market. Still banks were reluctant to turn to US government or Federal Reserve as this kind of action might indicate delicacy of

Bank mergers have increased rapidly in the past few years. Many wonder are so many mergers really necessary. The consolidation of two large banks could affect the relationship between the community, customer and the employee. Along with the merging of the two industries comes change for everyone involved. There is a lot of competition in the banking industry, which is the main reason for so many bank mergers. Bank mergers can improve competition and can be beneficial to the community if both financial institutions are in agreement with doing what is best for everyone involved. Banks should consider other options before taking a chance on losing good customers, loyal employees and trust in the community.