Essay about Why Investment Banking

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

Why have you chosen to apply to the Kellstadt Graduate School of Business? What are your short and long-term career objectives? How will the program assist you in pursuing your career objectives?

When I discovered the Finance Internship Program with Comcast NBCUniversal on Handshake, I was immediately drawn to the opportunity to join an innovative and industry leading organization. I am excited by the chance to gain corporate finance experience by working in one of Comcast’s many finance functions and being able to develop my business and finance related skills with an organization as prominent as Comcast NBCUniversal. As a junior majoring in Finance at the University of Arizona, I am passionate about corporate finance. My job at the UA Budget Office, my work as a preceptor for the UA Management and Organizations Department, and the knowledge I have gained from the Investments Club

One of the primary feature of the Global Financial Crisis, as well as other previous financial crises, was the build up of excessive on and off-balance sheet leverage in the banking system. The force on the banking system to reduce its leverage caused a forced decline on asset prices worsening the feedback between looses, deterioration in bank capital and the reduction of credit availability. The framework introduced a leverage ratio requirement, fixed at 3% (actuaries.asn.au, 2011), which aims to constrain leverage in the banking sector, and introduce additional protection against model risk and measurement error. This will help alleviate the risk of the deleveraging processes, which can damage the financial system (bis.org, 2010). The introduced leverage ratio will be a reliable extra measure to the risk-based requirement.

We all know from our course that leverage and liquidity risks of financial institutions are vulnerable to the crisis. The financial crisis that emerged in 2007 had many and varied causes, but one of its most

This paper is about the financial crisis in 2008 and how it all started as well as the ways that banking has operated and is operating today. I have watched all of Chairman Bernanke’s college lecture videos and he has gone into many different aspects of banking including how the Federal Reserve began, what lead to the recent financial crisis, and what we are doing as a nation to see what we can do to help eliminate from happening again. First, I will be summarizing Chairman Bernanke’s four lectures he did in 2012 at George Washington University.

Extensive research has determined that the banking industry is in an unstable state. The industry’s profits have

In order to apply my knowledge on quantitative and visual analysis and to see whether I enjoy doing so, I will seek opportunities to work as a financial analyst or as a marketing manager. Using the PennLink network, I wish to find internship positions as an undergraduate to gain hand-on experience under professional guidance and all the while refining my business etiquette.

Regulation is the process of making rules and legislations, thus creating a sort of supervisory system to be carried out by all firms and individuals. Managers are trusted by customers of financial service firms with their monetary resources, as in most cases clients do not fully understand how their money is being circulated once handed over. Although it can cost billions to pay for regulators to carry out their jobs, firms still pay for these services as it may bring more benefits in the long run as compared to drawbacks. (Arnold, 2012) Every firm or organisation needs regulation to ensure that minimum standards are being observed, to protect the customers and the money they decide to invest in a company. In a broader sense, it is possible for the occurrence of a financial crisis to be associated with financial regulation, or its lack thereof. In this essay, I will be writing regarding the global financial crisis of 2008 that began in the United States (US) and proceeded to affect the rest of the world following its collapse.

This report will analyze this Financial Crisis. Firstly, the reasons for which the banks failed will be discussed and the future of such failing banks will then be analyzed. This report will then examine how to avoid a similar crisis in the future and the current and future legal regulations of the banking system.

The 2008 global financial recession has been described a 'once in a century credit tsunami ' (Earle, 2009: 785). This is a disastrous blow to global financial community. Bullard (et al, 2009, citied in Hu et at, 2012) points out that many economists regarded the global financial crisis as the most serious global finance disaster since 1930s. Compared with only 11 banks was bankruptcy during 2003 to 2007, at least 160 American banks went broke in 2008 and 2009 (Fdic, 2011, citied in Hu et al, 2012). From this statistics, it is not difficult to know how strong influence brought by this financial crisis.

The purpose of this paper is to give a brief background of what led to the financial crisis of 2007-2009, as well as to provide an account of the underlying causes. The ultimate goal of the paper is to provide a quick look at how the financial crisis impacted financial institutions and markets. Poor risk management, inadequate capital reserves, and a too-big-to-fail mentality were root causes in the chaos that developed in the late 2000s. The resulting financial crisis had far-reaching impacts on liquidity, interest rates, and initial public offerings. Financial institutions such as pension funds, commercial banks, insurance companies, and mutual funds failed to use sound investment guidelines and risk management strategies to overcome the devaluation of mortgage-backed securities. Fortunately, current regulations have significantly increased oversight of these institutions on matters such as risk management and capital adequacy. Finally, this paper offers recommendations on how regulations can be changed to limit excessive risk taking.

The investment environment is vast and can be overwhelming if not entered into correctly. Firm’s issuing new securities to enhance revenues understand the complexities and risks involved when entering the primary market, and will employ investment bankers to mitigate those risks. Described throughout this paper is the investment banking process and portfolio construction, factors for selecting the portfolio asset classes, the capital market instruments used in portfolio construction, and recommendations for the composition of an investment portfolio.

Basel III is a far-reaching set of reform measures developed by Basel committee on banking administration and risk management of banking industry. The third segment was developed in response to the deficiencies in financial regulation which were highlighted in 2007 -08 financial crisis. The outcome of the 2008 Financial Crisis (which begun in 2007), has witnessed numerous changes one of the changes was the need for an enhanced Basel ll framework which had failed miserably during the 2007- 2008 financial crunch. After the global financial crisis, the G20 and the Basel Committee on Banking Supervision planned a series of new bank capital and liquidity guidelines called Basel lll. The first version of Basel lll was drafted and published in late 2009. Later on 12th September 2010 the Basel committee announced the new capital and liquidity ratios and the timeline by which banks need to fulfill the requirements. Once implemented new changes will have a drastic impact on the banking sector. It will mark an end to asset driven liability management which will force the banks to adapt the characterized banking or we can say the size of banks balance sheet will be dependent on their ability attract funds rather than their capacity to secure assets. A cautious study of 2009 accord shows minimal capital requirements, administration practices and revelations to the

Basel I focus more on credit risks instead of the operation risk, which bank face day-to-day problems in their business. In order to deal with this problem, Basel II creats an international standard about the quantity of capital provisions the bank should to guard against financial and operational risks they face. Basel II was established to achieve three committee objectives, first is to increase the quality and the stability of the international banking system, second is to create and maintain a level playing field for internationally active banks, the last one is to promote the adoption of more stringent practices in the risk management (Saidenberg et al., 2003). First two goals are important part of 1988 Accord while the third one is new regulatiton to the systems. The need for