Pre-Crisis Intelligence Report

For the last twenty eight years, China has been quickly growing into one of the largest economies in the world. China has accomplished this feat, in part, by radically changing their policies on trade and free market interactions with other countries. During this process, China has bought approximately one hundred trillion dollars of United States debt in the form of Treasury bills, notes, bonds, and Inflation Protected Securities (Amadeo). This debt has given China leverage against the United States which has enabled China to keep the value of the United States dollar high, while keeping the value of the Chinese yuan low. As the inflation of the dollar continues to negatively affect the

last five years of my life to the pursuit of understanding the inner workings of companies, I have developed a commitment to the field which enables me to understand various components of a company like Chase Bank. With my understanding, I will be able to potentially solve problems from various departments within the company such as: R&D, Marketing, and

In the summer of 2012, JPMorgan Chase, the largest leading U.S. bank, announced trading losses from investment decisions made by its Chief Investment Office (CIO) of $5.8 billion. The Securities and Exchange Commission (SEC) was provided falsified first quarter reports that hidden this massive loss.

The general objective of this policy paper is to deeply understand the latest and most influential financial reforms and the current financial environment in U.S through relatively comprehensive analysis with regard to the Dodd-Frank Act. In doing so, I move forward to provide some suggestions on improving the relevant legislature.

“While Sanders’ does not want to spend significant amounts of money, almost all of it is on things we’re already paying for; he just wants to change how we pay for them” (Bernie Sanders is Not Going to Bankrupt America). His plans predominantly revolve around readjusting taxes, so technically, we will not be put into an even larger debt than what we are already in. He intends to prevent American companies from avoiding paying U.S. taxes by corporate inversions (On the Issues). In 2013, Bernie Sanders introduced a legislation that will break up major Wall Street banks (Bernie’s Story). Sanders will close loopholes that allows American corporations to artificially inflate or accelerate foreign tax credits (On the Issues). By taxing Wall Street speculators and ending tax breaks for capital gains, Bernie Sanders will have the perfect plan to support his financial changes that will better the

Ever since the Consumer Financial Protection agency was born under Dodd-Frank , Senator Elizabeth Warren has been a advocate for Financial reform. Warren has advocated breaking up larger banks, so American does not fall into the "to big to fail" trap again. America should not be in a position, that citizens have to bail them out of a finantual disaster that they created. Warren wants jail time for presidents and managers that abuse the system. No more slap on the wrist for these white collor crimes, is Warren's motto.

Congress has discovered that the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 that created the Consumer Financial Protection Bureau or CFPB is fatally flawed and dangerous to traditional banking interests, politicians and lenders. The Huffington Post reports that ther bureau has become everybody's favorite target for reform or abolishment, and these stakeholders include people from opposite asides of the political specturm like the American Bankers Association and banking-system critic Rep. Spencer Bachus (R-Alaska). The CFPB, which was expected to target payday and predatory lenders,

2008 brought with it the worst economic collapse since the Great Depression. Many economists and politicians claim to have predicted this collapse and have led the charge to reform the powerhouse that caused it; Wall Street. Eight years after the financial crisis, Wall Street is still in need of major reform. With a presidential election on the horizon, this reform has become a major topic between Hillary Clinton and Bernie Sanders; the candidates on the Democrat’s side. Although they both want to tackle this issue, their approaches are vastly different and Clinton’s plan isn’t aggressive enough to complete the job.

Banks have been at the forefront of the financial system for as long as they have existed and have captured the attention of stakeholders on both controversial grounds as well as being undisputed with regards to the many helpful services they provide. JP Morgan & Chase is one such bank, surrounded by hostile news articles and excessive scrutiny but rightfully so as it has of recent been the topic of much controversy as turning a blind eye to the moral codes established by the Securities and Exchange Commission (SEC) and assisting Ponzi Scheme masterminds in swindling unsuspecting investors.

China had a GDP per capita level similar to Zambia, less than half of the Asian average and was lower than two-thirds of the African average at the outset of the reforms in 1978 (Eckart, 2016). China was poor. Since then, China has grown exponentially experiencing nearly 10% GDP grown per year until 2014 raising GDP from 155 current US Dollars in 1978 to 7,590 US Dollars in 2014 (Eckart, 2016). China, who accounts for 18% of the world’s population, was able to lift 800 million people out of poverty and growth in the middle class. This document will examine China’s financial and currency markets.

In the past years, the economy in China has grown at a considerably high rate averaged at nearly 10% annually. Due to this enormous growth, China now influences the economy of virtually every country all over the world. This is more apparent and frightening, considering the United States economic relationship with China. Until 2005, China pegged its currency to the U.S. dollar, but as from July 2005, it linked its currency to other currencies rather than dollars and let its currency appreciate by 2.1%. The central bank of China did this by buying and selling the dollar dominated assets in exchange of printed Yuan in order to eliminate excess supply or demand for the Yuan. Due to this, the exchange rate between the dollar and the Yuan, basically, remained constant irrespective of changes in economic factors which could have otherwise destabilized the Yuan relative to the dollar.

Furthermore, monetary conditions in China have changed as a result in Chinese’s GDP growth. The Chinese Central bank has reduced its reserve requirements and the

While the Chinese economy is booming at the moment, it is far from stable. Any economy that experiences growth like China has will be more vulnerable to global economic conditions, and the developing nature of China's market means this is even more of a truth. Questions about the long-term stability and viability of the Communist regime will always top the list of risks of doing business in China, but there are specific problems with the banking sector that concern Citibank. The legacy of policy banking has created an environment that lacks a culture of lending accountability. Currently Citigroup is not doing well in dealing with the following issues.

China is one of the greatest macroeconomic success stories of the current generation. The People’s Republic of China has in a little less than half a century moved to arguably be one of the greatest economies in the world. Indeed, some may even argue that it is the greatest. This, as per the Kindleberger/Minsky model, is a major cause for worry and not celebration. Indeed, around the year 2015, the Chinese economy was doing so well that it was attracting an avalanche of investors. Companies such as Beijing Baofeng Technology Company would have their stocks appreciating at astronomical levels of up to 10% per day. Money managers and experts from around the world and even the USA were exhorting investors to buy Chinese stakes. The government

A big chunk China's forex reserves are tied up in low yielding US treasury bonds. This had made chinesse investors nervous about the possibility of a US default. Although US securities form a large part of China's forex reserves but this