Investment banks

Similarly, prior to the great depression, banks were making large unsafe bets which caused the stock market to eventually crash causing

Problems Set 5 Spring 2013 1. Explain why commercial banks are regulated and describe the major pieces of legislation enacted to prevent bank failures. Financial institutions are regulated because they provide products and services that the economy needs to function efficiently. Also they function in an environment where there is a great deal of asymmetric information, so they help in the screening process. Another reason why banks are regulated is to limit predatory lending practices

introduced to avoid conflicts of interest. Banks offering investment banking services and mutual funds were accused of various abuses and were subject to conflicts of interest. The most essential source supporting the enactment of the Banking Act of 1933 was Pecora’s hearing in front of the US Senate Committee on Banking and Currency in February 1933 (Benston, 1990, P. 43). For Pecora and other opponents, only the strict legal separation of commercial and investment banking could fully eliminate the conflict

2008, Wall Street entered the largest financial crisis since the Great Depression. On a day that could have been called Black Monday, the Dow Jones Industrial average plummeted almost 500 points. Historically prominent investment giant Lehman Brothers filled for bankruptcy, while Bank of America bought out former powerhouse Merrill Lynch (Maloney and Lindeman 2008). The crisis enveloped the economy of the United States, as effects are still felt today. Experts still disagree about what exactly caused

Deutsche Bank and the Road to Basel III Deutsche Bank made its entrance into the world in 1870 and it was one of the first banks to adopt universal banking as it promoted and facilitated trade relations between Germany and other overseas markets. Deutsche Bank acquired smaller banks in Germany in order to be the most prominent bank in their home base in addition to having a global reach. Following World War I, inflation took over Germany causing many borrowers to default on their loans forcing the

Table of Content Introduction 1 1. The Beginning of Deutsche Bank 1 2. Reconstruction Due to First And Second World War 4 3. Internationalization 4 4. Becoming a Global Player 5 5. Conclusion .6 Introduction Deutsche Bank, an international universal bank, was internationally active a short time after its foundation. The bank’s early decades were a period of rapid expansion. With its growth Deutsche Bank seemed to be unstoppable. But with the beginning of the First and Second World

The rise and fall of Bear Stearns Introduction Bear Stearns, the fifth largest investment bank in US, was established as an equity-trading house in 1923 by Joseph Bear, Robert Stearns, and Harold Mayer. Its headquarters was located in New York City with offices in the major US cities, South America, Europe, and Asia, employing more than 13,500 people around the world. The firm survived every major crisis like the Great Depression, World War II, the 1987 market crash, and the 9/11 terrorists attack

that big banks , which are considered “too big to fail” are “too big to exist” so they should be broken up, than others argue that smaller banks don’t necessarily lead to a crisis-free banking system. Before analysing the reasons why should big banks be broken up or not, I want to argue about what a big banks in general is and the historical events that have led to them. Overall a banks is a kind of financial intermediaries which offer combinations of investment firm, commercial banks and insurance

also implemented restrictions on banks such as: investment methods, limits on speculative trading, and banning proprietary trading (when they invest for their own interest rather than clients’). It also banned banks from partaking in hedge funds or private equity firms (Dodd-Frank Wall Street Reform and Consumer Protection Act, n.d.). This is called the Vlocker Rule, it curbs the risk that a bank can take and separates the investment & commercial functions of the bank so that they don’t conflict in

Bismillahir Rahmanir Rahim An Empirical Study of Performance of Islamic Banks in Bangladesh with special reference to Islami Bank Bangladesh Ltd By Shah Abdul Hannan, Former Secretary, Ministry of Finance, Government of Bangladesh and M. Fariduddin Ahmad Deputy Executive President Islami Bank Bangladesh Limited ________________________________________________ SECTION – I Banking Scenario in Bangladesh When Bangladesh came into existence on the 16th December, 1971, the banking sector of Bangladesh