How about consumer protection legislation
Course:- Financial Management
Reference No.:- EM13676769

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Management

Since the 2008-2011 financial crises, banks have become leery of lending to consumers. There has been much research completed on this subject and the blame has been a subject of much controversy. Fast-forward to 2013 and 2014. Has anything changed in the banking industry to open the lending activity?

Has there been any new legislation passed to encourage banks to lend? How about consumer protection legislation? Research this issue using several scholarly articles to use as References as to please cite according to APA citation requirements. 1,5 pages plus references.


Verified Expert

Preview Container content

Since the onset of the financial crisis of 2007-08 the FED have continuously discouraged the banking sector from lending to the retail institutions like individuals which was aimed at reducing the inflationary trend but this has widened the unemployment in the economy. Because of this the reserves in the banking system has increased tremendously from a $40bn in 2007 (excess reserves were to the tune of $15bn) to almost a trillion dollars in 2012. Of this a net amount of $90 billion is regarded as excess reserves in 2011-12. This was unprecedented not in terms of size only but in terms scale as it has never happened before. (Mankiw, 2012)

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
New Millennium Company stock sells at P/E ratio of 20.6 times earnings. It is expected to pay dividends of 2.19$ per share in each of the next 5 years and to generate an EPS o
Delmont Transport Company (DTC) is evaluating the merits of leasing versus purchasing a truck with a 4-year life that costs $40,000 and falls into the MACRS 3-year class. What
A stock is currently selling for $50 a share. The stock is not expected to pay any dividends over the next 3 years. The annual risk-free rate with continuous compounding is 5%
Consider four different stocks, all of which have a required return of 20 percent and a most recent dividend of $3.10 per share. Stocks W, X, and Y are expected to maintain co
Company Z issued bonds with detachable warrants several years ago. Each warrant allows the holder to purchase one share of stock at $30 per share. The stock has a beta of 1.3.
If the public expects a corporation to lose $5 a share this quarter and it actually loses $4, which is still the largest loss in the history of the company, what does the effi
What are the differences between long-term debt financing and long-term leasing. Under what circumstances would you choose between the two if put in a position to do so? Give
On each non delinquent sale Cast Iron receives revenues with a present value of $1,240 and incurs costs with a present value of $1,090. Assume there is no possibility of repea