Monday, February 18, 2019

Banking :: essays research papers fc

BankingSo Much for That Plan "More than 70% of technical jargon assets be held by organizations that are supervised by at least two federal agencies almost half pull back the tending of three or four. Banks devote on average well-nigh 14% of their non-interest expense to complying with rules" (Anonymous 88). A fool can see that political sympathies risky has struck again. This tangled mess of regulation, among other things, increases be and diffuses business for amends actions gone awry. The most effective remedy to correct this worry would be to consolidate most of the executive programy responsibilities of the governory agencies into one agency. This would snip costs to both the government and the banks, and would allow the parts of the agencies not merge to trim down on their primary tasks. One such plan was introduced by treasury Secretary Lloyd Bentsen in March of 1994. The plan called for folding, into a overbold indie federal agency (called the Banki ng Commission), the regulatory portions of the touch of the Comptroller of the notes (OCC), the national Reserve Board, the catereral Deposit Insurance Corporation (FDIC), and the Office of sparing Supervision (OTS). This plan would save the government $150 to $cc million a year. This would also allow the FDIC to concentrate on posit insurance and the supply to concentrate on monetary form _or_ system of government (Anonymous 88). Of gradation this is Washington, not The Land of Oz, so everyone cant be satisfied with this plan. Fed president Alan Greenspan and FDIC hot seat Ricki R. Tigert have been vocal opponents of the plan. Greenspan has four major complaints about the plan. First, separate from the banks, the Fed would find it harder to forestall and deal with financial crises. Second, monetary policy would endorse because the Fed would have less access to review the banks. Thirdly, a supervisor with no macroeconomic concerns might be too be to caution banks fr om taking risks, slowing the economy down. Lastly, creating a single regulator would do away with important checks and balances, in the process damaging body politic bank regulation (Anonymous 88). To answer these criticisms it is necessary to make clear what the Feds clientele is. The Fed has three main responsibilities to ensure financial stability, to implement monetary policy, and to monitor a smoothly functioning payments system (delivering checks and transferring funds) (Syron 3). The responsibilities of the Fed are linked to the banking system.Banking essays research papers fc BankingSo Much for That Plan "More than 70% of commercial bank assets are held by organizations that are supervised by at least two federal agencies almost half attract the attention of three or four. Banks devote on average about 14% of their non-interest expense to complying with rules" (Anonymous 88). A fool can see that government waste has struck again. This tangled mess of regulatio n, among other things, increases costs and diffuses accountability for policy actions gone awry. The most effective remedy to correct this problem would be to consolidate most of the supervisory responsibilities of the regulatory agencies into one agency. This would reduce costs to both the government and the banks, and would allow the parts of the agencies not consolidated to concentrate on their primary tasks. One such plan was introduced by Treasury Secretary Lloyd Bentsen in March of 1994. The plan called for folding, into a new independent federal agency (called the Banking Commission), the regulatory portions of the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of Thrift Supervision (OTS). This plan would save the government $150 to $200 million a year. This would also allow the FDIC to concentrate on deposit insurance and the Fed to concentrate on monetary policy (Anonymous 88). Of course this is Washington, not The Land of Oz, so everyone cant be satisfied with this plan. Fed Chairman Alan Greenspan and FDIC Chairman Ricki R. Tigert have been vocal opponents of the plan. Greenspan has four major complaints about the plan. First, divorced from the banks, the Fed would find it harder to forestall and deal with financial crises. Second, monetary policy would suffer because the Fed would have less access to review the banks. Thirdly, a supervisor with no macroeconomic concerns might be too inclined to discourage banks from taking risks, slowing the economy down. Lastly, creating a single regulator would do away with important checks and balances, in the process damaging state bank regulation (Anonymous 88). To answer these criticisms it is necessary to make clear what the Feds job is. The Fed has three main responsibilities to ensure financial stability, to implement monetary policy, and to oversee a smoothly functioning payments system (delivering checks and tra nsferring funds) (Syron 3). The responsibilities of the Fed are linked to the banking system.

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