Title I: Financial Stability Act (2010)

Background. Grant Thornton LLP v. FDIC, took place in West Virginia District Court in 2004. We are here today as a result of the appeal filed by Grant Thornton. In asserting for the OCC, we will prove why Grant Thornton is responsible for not acting in accordance with the laws and regulations designed for independent financial institutions while conducting an audit for the First National Bank of Keystone. The OCC is an independent bureau of the U.S. Department of Treasury that is responsible for supervising all national banks and federal savings associations, including federal branches and agencies of foreign banks (Office of the Comptroller of the Currency, 2015). The First National Bank of Keystone was incorporated in 1904 in Keystone, West Virginia. Keystone Bank was a member of

That is to say, the Federal Reserve's job is to maintain an accurate banking structure and a healthy economy. To fulfill its mission, the Federal Reserve presents itself as the financial institutions bank, the ministry's treasury, the director of monetary organizations and the nation's currency

The designers of the Federal Reserve Act deliberately dismiss the idea of a solitary national bank. Rather, they accommodated a focal keeping money "framework" with three striking elements:

Prior to the financial crisis, the overall responsibility for financial oversight was divided among several different agencies. These agencies and their “varying rules and standards led to certain entities not being regulated at all, with others subject to less oversight than their peer

The Dodd-Frank Act was enacted to deal with the various problems occurred in the financial crisis. The paramount reason I choose this law is it has brought the most significant changes in the federal financial regulation since the regulatory reform that followed the Great Depression. (Damian & Lucchetti, 2010)

The Federal Reserve, Bureau of Labor Statistics, Department of Labor, Department of Commerce and Treasury Department play crucial roles in the value and availability of money in the USA economy. First, the Federal Reserve is the central bank of the United States. It is run by a Board of Governors appointed by the president and serves as a bank to banks. It performs five general functions to promote the effective operation of the U.S. economy. One, it conducts the nation's monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy. Second, it promotes the stability of the financial system and seeks to minimize and contain systemic risks through active monitoring and engagement in the

The Federal Reserve System is the central bank of the United States. It performs five general functions to promote the effective use of the U.S economy. They work to provide fallback on banks and ensure banker’s money up to 250,000 in each bank. It tries to provide security and stability in the economy and trust in the nation’s banks and minimizes risk involved in trusting the US banking system. The chairman is Jerome H. Powell, with the vice chairman being Randal K. Quarles. There are 12 main districts with us being in the 11th one which is Dallas. The president for our district is Robert S. Kaplan, he took office September 8, 2015. The Board of Governors work together alongside the federal reserve banks and federal open market committee to

According to Randall ‘too big to fail,’ (TBTF) policy is legal reorganization of the fragile bank so that uninsured creditors and Federal Deposit Insurance Corporation could be saved from suffering a loss. In addition, Randall argues it is necessary to extend the TBTF policy to all depositors and creditors of larger banks to avoid the situation of a failure of such banks will lead to failure of other banks. Randall argues that the federal safety net should be limited only to banking institutions and should not enlarge to non-banking institutions. For the reason that in case of failure of such large non-banks and banks, government will have to use taxpayer funds to absorb such

The Federal Reserve uses two other types of tools besides the open market operations (OMO), and they are the discount rates and reserve requirements. The FOMC is responsible for the OMO and the discount rate and reserve requirements are taken care by the Federal Reserve System’s Board of Governors. The three fundamental tools can influenced the demand and supply of and the balances that depository institution hold which can result in the change in federal funds rate.

There are twelve regional banks all throughout the United States. Some locations include Kansas City, St. Louis, Atlanta, and New York. New York is the biggest of the banks and is the only bank responsible for handling gold. The Federal Reserve Banks are not only public and but its part private as well. “They are charted federally, and they are private, nonprofit organizations owned by commercial banks within their district” (Cecchetti & Schoenholtz, 2015, pg. 424). Since the banks are both private and public, their own leaders from each side monitor them. Each bank has a board of directors made up of nine people. Of the nine members, only the board of governors can vote on three members. The other six are picked to represent commercial banks and the remaining three represent the public’s interest. This is done so each of the members represents different groups, but all have want economic stability. Each of the banks also has a president that elected by members of the board. The term of each president is only five years. The president is in charge of many things but one major job is to make sure the responsibilities of the bank are performed. The Federal Reserve is responsible for being the government’s bank and the banker’s bank. For the government, the banks purposes are to create money and destroy old, damaged money, managing the treasury’s bank account as well keeping track of what its

The Federal Reserve System is often referred to as “the Fed.” It serves as the nation’s central bank and arguably plays the most crucial role in the U.S. economy. It is the most important regulatory agency in the U.S. monetary system and is usually considered the monetary authority. The Fed has several responsibilities and performs several functions. There are a few theories documented that challenge whether or not the Federal Reserve System exists the way it is defined.

The Federal Deposit Insurance Corporation (FDIC) is a government corporation that was established by Congress in 1933. On June 16, 1933, President Franklin Roosevelt signed an Act known as ‘The Banking Act of 1933. The act was created during the Great Recession in order to restore the trust of the public in the American banking system, due to the fact of how frequent bank runs were happening. A bank run is a result of so many people demanding to withdrawal their deposits from the Bank’s reserves, that it leads to the banks becoming insolvent and not being able to return their depositor’s money, which lead to many banks filing for bankruptcy. During this time thousands of banks failed and because of this many people lost faith in the American

The aim of this bill is to reduce the risk in various aspects of the US financial system. The law also created government agencies, such as the Financial Stability Oversight, Orderly Liquidation Authority, and Consumer Financial Protection Bureau (CFPB). These agencies are tasked to monitor the performance of companies considered as “too big to fail” to prevent serious

The Financial Institutions Reform, Recovery, and Enforcement Act of 1989, more commonly known as FIRREA, was one of the acts that had the most sweeping reforms in decades. This was in response to the fraud in the savings and loans institutions and recession of the ‘80’s. It moved supervision and regulation of the savings and loans institutions under the FDIC. FIRREA eliminated the Federal Home Loan Bank Board and established two new agencies: the Federal Housing Finance Board (FHFB) and Office of Thrift Supervision (OTS) (Important Banking Laws, 2015). It also established the Resolution Trust Corporation (RTC), which was responsible for disposing of assets of failed institutions (Important Banking Laws,

The goal of financial regulation is to increase efficiency in the market, as well as enhance the market 's ability to absorb shock caused by financial instability. There are many reasons for financial instability, but it can be narrowed down to