Regulation Of The Us Banking Industry

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Final Exam Jennifer Ngo Bus 171A – Xu December 11, 2015 1) Regulation of the US banking industry; Changes in the industry since the recent recession -Banks can include commercial banks, savings and loans, and credit unions. Everyday banks are used to make payments, deposits, withdraw, or talk to bankers about options. Regulations are highly important in the banking industry, protecting customers and economically. Banks gain funds by retained earnings, equity securities, savings, loans, and charging interest rates. There are number of banking regulations, the 1933 the FDIC set an insurance on deposits of $250,000 or more due to previous bank failures. This means that deposits are safe and if a bank does fail, the money…show more content…
Any financial institution would consists of financial products, loans, or investment advice and insurance. With this institution, there is data regarding bank information like your account and private financial information. Banks and other institutions were required to maintain confidentiality and not use that to “sell” off any personal information, nor share it. During the 2008 panic and recessions, many worried that this would soon happen again if there wasn’t additional regulations implemented in preventing another crisis. In 2010, according to Harvard Law, he Dodd-Act was reformers, improving customer protection, reduce possible and future crisis, and end taxpayer bailouts. Another act reformed was Basel, requiring banks to have more sustained capital and increasing bank liquidity reserves. Banks are probably now stronger, healthier now than ever. It is much safer however still risks comes, but have immensely improved in the last decade. 2) Actively managed funds vs. Passive funds; whether fund manager characteristics matter to fund performance -Actively managed funds are managed by “experts” who choose certain stocks for you, with this there are fees as they are managing for you. According to CNN Money, fees can range from 0.6% to 1%, and with hiring these experts many would assume they would do better and outperform the market. Assuming that these
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