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Paper Topic:

Current Financial Crises


Currently , there are many regulatory authorities in U .S . financial system viz , Federal Reserve , the Controller of the Currency , the Federal Deposit Insurance Corporation , the Office of Thrift Supervision the Office of Federal Housing Enterprise Oversight , the Securities and Exchange Commission (SEC , the Commodity Futures Trading Commission State banking regulators and state insurance regulators who are controlling the respective areas of U .S .financial system . Most importantly and above all authorities , Federal Reserve whose chairmanship is headed by Ben S . Bernanke and there is also a huge responsibility for

U .S .Treasure Secretary Henry M Paulson . With the valuable experience and vast knowledge about U .S . financial system , both U .S .Treasure Secretary and Chairman of Federal Reserve possess a great capacity to clear out and identify the problems in U .S . financial system and have recently released a 700 bn bailout plan to save the present financial system of U .S which in all probability must work and eliminate all the hindrances that were threatening the nation 's economy

The merge of Merrill Lynch with BOA , Lehman Brothers Inc , bankruptcy have affected the U .S . economy whereas U .S . can always expect a greater benefit from BOA in the long-term perspective as Merrill Lynch has a strong workforce and has great amount of assets and BOA would still go strong with its expansion of financial activities as well in customer service areas

While mergers and takeovers always save the companies from going out of revenue and business operations , bankruptcy puts the entire management and employees to a problem and in terms of contribution economy , a negative impact is made on GDP growth

Although U .S . financial system is of elite standards and procedures , the outgoing investments that Lehman brothers has been making without even taking note of its assets , have lead the company to its final stage and global investor finance company is presently under the ownership of Barclays Capital which has enabled to reopen its business and 10 ,000 employees of Lehman Brothers have been offered jobs in Barclays

It is important to take note that for the U .S . economy to continue its growth , NASDAQ , Dow Jones , NYSE must indicate the rise in sensex for which multinational companies which are listed in bourses must trade well and must keep the confidence of investor , offering regular returns on investments , and especially for U .S . economy , which is basically run by global business operations , changes in ruling government leave a very less impact on GDP growth which is why , there are many advantages for multinational companies to perform well and to invite more foreign investor investments into the country

Should there be any regulatory changes ? If so , why or why not

Merrill Lynch , AIG , Lehman Brothers Inc , Freddie Mac , Fannie Mae are some of the strong companies with over 70 - 100 years of experience in various business and investor operations . Freddie Mac and Fannie Mae although privately owned and controlled by shareholders , Federal government supports by giving an...

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