Financial crisis regulatory - Essay Example

Only on StudentShare

Extract of sample
Financial crisis regulatory

Robert Shiller examined the controversy of the global economic crisis and its management and raised prudent arguments about the practice. The economist argues that democratization of finance provides an ideal strategy of managing the contemporary and future economic crisis. Some analysts support Shiller’s perspective while others have criticized his ideology. Interestingly, few economists argue that the financial regulations adopted by the OECD countries are sufficient in containing financial crisis (Gray & Akseli, 2011 p. 2). Considering the magnitude of the idea of global financial crisis management, there is a need of developing knowledge of ideal approaches of managing the problem. This article provides an analysis of the debate started by Shiller concerning democratizing finance while comparing the argument with the types of regulatory measures practiced by the OECD countries. The Shiller’s perspective on financial crisis Shiller explores the importance of moral reputation of finance institutions in management of economic crisis. After the 2008 global economic recession, anger expressed itself in objections around the world. People constantly criticized how powerful profit oriented social-economic procedures have influenced financial institutions. ...
Download paper

Summary

FINANCIAL CRISIS REGULATION Name: Instructor: Task: Financial crisis regulation Introduction The economic crisis that began in the year 2007 has attracted attentions of various economists. Policy makers and analysts are constantly searching for strategic procedures for managing economic crisis to develop strong economies…
Author : laynehowe

Related Essays

2008 Financial Crisis
In 2007, the US entered a financial crisis, consequences of which are still suffered by the entire country. Until the crisis began and unraveled in 2008, most economists were optimistic. The US economy was growing, markets were considered to be liquid and employment levels were high. However, within one year, everything changed. According to Reavis, “the collapse of the U.S. housing market triggered the financial crisis” (3). Weak financial regulatory structure, lack of understanding the innovations in the financial sector, over borrowing and securitization of mortgages are seen as main...
11 pages (2761 words) Term Paper
Regulatory Response to the Financial Crisis which began in 2007
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...
8 pages (2008 words) Essay
Financial Crisis research paper
During the period of late 1990s and the early years of 2000s, a considerable number of developing countries had deposited their savings in the investment and commercial banks of the United States of America. This provided a supplementary liquidity in America. The banks and other financial institutions had more funds than the avenues for the investment. The excessive liquidity convinced many financial institutions and banks to extend lending even to the individuals and institutions that did not have a favourable credit history. The attacks of 9/11 also contributed its part. Soon after the...
9 pages (2259 words) Research Paper
The Financial Crisis Essay
The valuable lessons learned from the crisis will also be discussed herein. Bear Stearns, AIG, Lehmann Brothers, Northern Rock, and Goldman Sachs are some elite names that suffered most because of the economic crisis also known as recession. Lehmann Brothers filed for bankruptcy while AIG and a few other elites just hung in there with the skin of their teeth. This economic crisis is still having repercussions on countries such as Greece and Spain; the whole of Euro Zone is facing a financial turmoil. There are a few other countries that have been not so severely affected by the same. The...
5 pages (1255 words) Essay
Financial crisis
In such a situation, the entity would face liquidity problems, have cash flow problems, and see the net worth decreasing. If it happens to a market or a bank, then there would be panic selling that further brings the prices of stocks down. There would be a run on the banks with a large number of people attempting to withdraw cash. Assets would lose their valuation. Depending on the severity of the crisis, the market would recover in a few days or the ill effects would persist for a few years. A financial crisis is followed by recession and a general slowdown of the market. Financial crisis can...
8 pages (2008 words) Term Paper
2007 financial crisis
The risks kept building up and through the synergistic effect; they interconnected among the institutions, which in the end undermined the stability of the financial institutions. There were seven main causes that worked together to cause the 2007 financial crisis. Such included the securitization of the mortgages bringing forth to the rise in the shadow banking sector, regulatory arbitrage and conflict of interest, leverage and lower interest rates, outsourcing of mortgage broker function, the suits vs geeks’ problem and finally the bankruptcy law changes. The factors mentioned above worked...
5 pages (1255 words) Essay
EVALUATE THE MAIN EU REGULATORY REACTIONS TO THE FINANCIAL CRISIS INCLUDING THE CHANGES TO THE EU REGULATORY PROCESS FOR FINANCIAL SERVICES
Evidently, the financial crisis began in the second quarter of 2006 in United States. To this end, there were significant losses registered banks in United States as a result of sub primal foreclosures of mortgages (Chrisdoulaki, 2010). Consequently, since the mega banks in European Union and United States were operating under business models which were similar, the financial distress facing the United States were replicated in the European Union. To this end, the mega banks located on both the European Union and United States suffered from under-capitalization and insufficient liquidity...
6 pages (1506 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!