US Re-Regulation of Financial Markets Without Undermining Innovation
Not what you're looking for?
The US is currently attempting to deal with the biggest financial crisis since the Great Depression. How could the government re-regulate financial markets without undermining the needed innovative capacity of financial institutions?
Purchase this Solution
Solution Summary
The United States re-regulations of financial markets without undermine innovations are examined.
Solution Preview
Re-regulation of financial markets
Financial innovation refers to development of new financial products designed to cater to client's needs such as offsetting risk, provide financing, etc. During 2007, multiple financial products were developed, like adjustable-rate-mortgage, the bundling of subprime mortgages into mortgage-backed securities (MBS) or collateralized debt obligations (CDO) for sale to investors, a type of securitization; and a form of credit insurance called credit default swaps (CDS). The use of these products increased manifold over a period, which led to the crisis. The CDS enabled an infinite amount to be wagered on a finite value of housing loans outstanding. Hence, financial crisis is a perfect example of an innovation which was not used as per its intended use and which lead to a disaster.
The ...
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Motivation
This tests some key elements of major motivation theories.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.