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Many countries signed treaties and trade agreements that that allowed financial institutions to move beyond international borders while bypassing significant regulations.
However, there is evidence to support the fact that the Gramm-Leach Bliley Act, that essentially repeal the Glass-Steagall Act, increased the bank failure rate, affect the cost of funds, and also increased stock market volatility (Cebula, 2010). Many people have actually proposed that a form of the Glass-Steagall Act be reintroduced. The U.S. Congress attempted to sign into law a Financial Reform Bill by the fourth of July, 2010 that was intended to re-enact Glass-Steagall type reforms to ban banks from speculative trading with depositor's money, introduce a consumer protection bureau to police credit products, and empower the government with authority to seize failing systemically important institutions (Lopes, 2010). However, not all of these items were instituted. Furthermore, deregulation is still a problem while markets to have continued to accept more systemic risk. With a limited number of very large banks that are prone to accept...
Although there are many benefits such as product innovation, there are also a different set of risks that are injected into the system that can create volatility and raise the consumer price for financial services.
Works Cited
Cebula, R. (2010). Bank Failures in Light of the Gramm-Leach Bliley Act. International Atlantic Economic Society, 455-456.
Fraser, D., & Hebb, G. (N.d.). Conflict of Interest in Commercial Bank Security Underwritings: United Kingdom Evidence. University of Nebraska, 79-96.
Lopes, J. (2010). Re-enactment of the Glass-Steagall Act 1933: is this a step in the right direction for global reform? Law and Financial Markets Review, 428-433.
Ngassam, C. (2013). The Mortgage Industry's Role in the Current Financial Meltdown: Historical Perspective and Recommendations. Academy of Accounting and Financial Studies, 1-24.
Weissman, R., & Donalue, J. (2009). Wall Streets Best Investment. Multinational Monitor, 10-32.
Works Cited
Cebula, R. (2010). Bank Failures in Light of the Gramm-Leach Bliley Act. International Atlantic Economic Society, 455-456.
Fraser, D., & Hebb, G. (N.d.). Conflict of Interest in Commercial Bank Security Underwritings: United Kingdom Evidence. University of Nebraska, 79-96.
Lopes, J. (2010). Re-enactment of the Glass-Steagall Act 1933: is this a step in the right direction for global reform? Law and Financial Markets Review, 428-433.
Ngassam, C. (2013). The Mortgage Industry's Role in the Current Financial Meltdown: Historical Perspective and Recommendations. Academy of Accounting and Financial Studies, 1-24.
"The law banned commercial banks from underwriting securities, forcing banks to choose between being a simple lender or an underwriter (brokerage)" (PBS.org. N.D. PP. 1). The legislation was a direct response to the late 1920's Wall Street binge years in which "financial mismanagement and elite corruption ruined banks and destroyed public faith in American finance" (Departments. Washington.edu. N.D. PP. 1). Financial Services Modernization Act The repeal of Glass-Steagall in 1999 was
Constitution & Governmental Gridlock Constitutional Change #1 A constitutional amendment is needed to overturn the Supreme Court ruling in Citizens United, Appellant v. Federal Election Commission. In this case, the United States Supreme Court held that the First Amendment prohibits the government from restricting political independent expenditures by corporations, associations, or labor unions. Corporations aren't people. Only people are people. The United States District Court for the District of Columbia reversed a
Sarbanes-Oxley. The political pressure of the past several years following the dot.com bubble and the collapse of several major companies created a need for new securities legislation, which culminated last year in the Sarbanes-Oxley Investor Protection Act, which establishes new guidelines for the securities industry. Initially a Democratic brainchild, the act became favored by Republicans in the House when it was realized that such adjustments would be of great benefit to