New Financial Institutions Of The United States Financial Services

The Bank of the United States was designed to make money and build an economy. It was designed by men like Alexander Hamilton and Robert Morris, but did not benefit the common citizen as much as wealthy investors. Why did a fledgling government need to borrow millions from overseas in order to invest in a “national” bank, to turn around and then borrow the same money back and pay interest on it? The banking system developed by Alexander Hamilton and Robert Morris was prime pickings for speculators, and laid the groundwork for a history of unscrupulous activity regarding our nation’s money supply that continues to this day. The signatures on the Constitution were barely dry before corruption and

The banking industry has undergone major upheaval in recent years, largely due to the lingering recessionary environment and increased regulatory environment. Many banks have failed in the face of such tough environmental conditions. These conditions

The United States has some of the largest financial markets worldwide (Commerce.gov, n.d.). These financial services, aid, in the financing of manufactured goods and agricultural products which are exported (Commerce.gov, n.d.). There are several advantages for investment in the financial services of the United States (Commerce.gov, n.d.).

The credit union offers many opportunities for its members. No union is quite the same. Every company has many similarities. Members of the union are given advantages that may not be available to others. There are many advantages and disadvantages to being part of a union. What is the America First Credit Union? It is a credit union associated with the Salt Lake County, Utah area. Members of this union must live within a twelve mile radius of the Mesquite Nevada post office. This company provides service to these residents only. The eligibility to become a member is stricter than most companies. A member of your immediate family must have a membership with the America first credit union. The other eligibility requirement is if your

The United States has some of the largest financial markets worldwide (Commerce.gov, n.d.). These financial services aid in the financing of manufactured goods and agricultural products which are exported (Commerce.gov, n.d.). There are several advantages for investment in the financial services of the United States (Commerce.gov, n.d.).

The banking industry consists of almost sixty-five hundred banks that are insured by the Federal Deposit Insurance Corporation (FDIC). Out of these, there are eighty-one substantially large banks in the United States that are publically traded, which is where the market structure and industry information will be based. However, as with the rest of the country, these banks are very concentrated, with the largest banks accounting for over half of the market as well as accounting for the largest amounts of revenue.

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

The American economy is a complex balance of services, financial, manufacturing, agricultural, and banking industries. For this reason, the U.S. is a global economy, relying upon foreign investments and trade to create and retain wealth. Over the years, America has evolved from farming-based, to industrial, to a services-based economy. As a result, the banking system from its inception has weathered the many growing pains associated with a new government and currency, instituting regulations and a centralized bank to examine the economy, and implement policies intended to offset factors negatively affecting the general financial health of the country.

Before the advent of the Federal Deposit Insurance Corporation (FDIC) in 1933 and the general conception of government safety nets, the United States banking industry was quite different than it is today. Depositors assumed substantial default risk and even the slightest changes in consumer confidence could result in complete turmoil within the banking world. In addition, bank managers had almost complete discretion over operations. However, today the financial system is among the most heavily government- regulated sectors of the U.S. economy. This drastic change in public policy resulted directly from the industry’s numerous pre-regulatory failures and major disruptions that produced severe economic and social

Bridgewater Bank was founded in November 2015 by Jerry Baack. It is a community bank established in Bloomington, Minnesota. The headquarter building is the same location as the first branch. According to North Western financial review, Bridgewater Bank merged and acquainted First National Bank of the Lakes in Orono, Minnesota. Currently, all four branches are located in Minnesota. Although this bank is Non-member of the Federal Reserve System, it is regulated by the Federal Deposit Insurance Corporation (FDIC). The main function of FDIC is to provide a maximum amount of $250,000 insurance coverage for each deposit account. The bank's total asset is about $ 925 million as of December 31, 2015. The bank has a variety of services, including

The investment banks, and subsequent stock brokerage firms, was regulated by the Security and Exchange Commission. The banking entities, in this portion of the financial sector, were used to dealing in high risk business that were structured on the business’ equity and debt capital, instead of the commercial banks’ deposits of customers. The activities in this sector of the financial system were underwriting stocks and bonds, insurance markets, the investments in subprime debt markets and mortgages.

The banking industry is highly competitive. The financial services industry has beenaround for hundreds of years and just about everyone who needs banking servicesalready has them. Because of this, banks must attempt to lure clients away fromcompetitor banks. They do this by offering lower financing, preferred rates andinvestment services. The banking sector is in a race to see who can offer both the

The sector offers a considerable barrier to new entrants due to the high capital required to establish a new bank. As banking is professional services type required high creditability, strong brand presence is the key obstacle for newcomers.

Financial regulation is necessary and without an efficient set of regulations a country could see rises in unemployment, interest rates, and the deterioration of financial intermediaries. With the globalization of the financial industry, it becomes more and more common for businesses to seek financing outside of their county 's boarders. These innovations in the financial industry stress why it is so important for regulations to be created and changed to reduce risk and asymmetric information in financial systems.

List of abbreviations List of tables Acknowledgements Abstract 1. 2. 3. 4. 5. 6. 7. 8. Introduction Problem statement Objectives and hypothesis of the study Literature review Structure and performance of the financial sector in