Regulatory Response to the Financial Crisis which began in 2007

Finance & Accounting
Pages 8 (2008 words)
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Name Course Instructor 11th November 2011 Regulatory Response to the Financial Crisis which began in 2007 Introduction The period 2007 to 2010 was a crucial period in the history of most if not all countries around the world. The crisis which rocked the financial system was described by many as the most severe downturn since the Great Depression of the 1930’s (Chang 2010, p.


1). The debate still rages as to the real cause of the crisis. King (2011, p. 48) indicates that a major contributor to the global crisis was global imbalances which requires rebalancing of global demand in order to facilitate a sustainable recovery. This paper provides a brief synopsis of the events and the regulations which followed in the US, Germany, UK, Netherlands and Spain. According to Blundell-Wignall and Atkinson (2010, p. 2) every banking crisis has been associated with major disruptions as well as recessions and this is the reason for certain bank regulations. New regulatory responses are generated by every global financial crisis (Helleiner 2010). This was no different for the crisis which started in 2007 resulting in what has been described as ‘the Great Recession.’ Regulatory Response in the United States According to the U.S. Senate Republican Policy Committee (2010) a multitude of events led to the Great Recession of 2008-2009. ...
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