4. Short essay:The new US administration is trying to change the fabric of finan

Question

4. Short essay:The new US administration is trying to change the fabric of finance on a regulatory level. We went over several of these in class during current events and various discussion. What are some of the ways the administration wants to alter the economy? What is your opinion of them, and why?[You do not need to do outside research for this, but you may. You will not be judged on any political views: This is an opportunity to recall and interpret learnings from class – as well as learnings outside of class -- using your own individual lens.]

Explanation / Answer

In view of the mentioned question, taking into consideration the financial crisis of 2008 and the resulting economic uncertainty, the initiatives undertaken by the government to revamp the economy to ensure better financial regulation and corporate governance is through the following ways such as : Stringent and greater regulation of banking institutions, securities markets; reforms related to mortgage market; greater protection of the investors ; streamlining of payment and settlement process and aligned systems, governance by federal reserve, consumer protection, insurance based reforms, elimination of OTS. All these key / pivotal aspects are part of the 'Dodd–Frank Wall Street Reform and Consumer Protection Act' which was enacted in 2010 post the crisis. In own perception, these measures / reforms undertaken are going to fundamentally transform the nature of financial system set up of the country thus overhauling the entire regulatory mechanism. The financial meltdown /crisis has served as an eye opener for the regulatory and goverment bodies to identify and fix these lacuna / loopholes thus these have served as a great learning exercise. It’s a major step to enhance the resiliency of the financial system overall and the various aspects related to it which act as a propeller for the country / economy growth. The reason for having views in favour of reforms is that because robust financial markets with strong back up of capital liquidity is essential. As this adds significant value towards strengthening the fundamentals / base of the regulatory financial set up and resolve any emergency kind situations.

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.