Exam 17: The Impact of Deregulation and Regulation on Financial Institutions and Banking Industry in the United States

Opposition to the repeal of the Glass-Steagall Act centered on the following:

The stress tests of large banks highlighted in Basel II were performed ahead of schedule to the recent credit crisis of 2007-2009.

Which of the following laws required that a bank or a thrift be closed if its ratio of tangible equity capital to total assets fell below two percent for more than 90 days?

When a corporation's "insiders" buy or sell that firm's securities, it must be reported to the Comptroller of the Currency.

Which of the following is a self-regulatory institution?

Using the description below, indicate the type of financial institution. a. SEC regulations require that at least two-thirds of this financial institution's board of directors must be elected by its stockholders. b. Insurance coverage is based upon the number of plan members. c. Regulated almost entirely by state commissions. d. Most of the regulation of this financial institution focuses upon its policies and procedures for making consumer loans. e. Deposits are insured by NCUSIF.

In today's largest security-dominated financial systems, the banks in those countries also enjoy the widest regulatory latitude with respect to service activities and product offerings.

The FDIC Improvement Act allows federal regulators to close a bank or thrift institution if its ratio of tangible equity capital to total assets falls below two percent for more than 90 days.

Most banks in the United States are subject to multiple regulatory jurisdictions.

The creation of money is closely associated with:

Prior to the credit crisis of 2007-2009, there was a trend toward gradually allowing private markets to discipline risk-taking by financial institutions and minimize the role of government.

Savings and loan deposits in the United States are insured by:

Charters for new national banks in the United States are issued by the:

The Federal Deposit Insurance Reform Act of 2005 allows the boards of the FDIC and the National Credit Union Administration (NCUA) starting in 2010 to adjust deposit insurance coverage for inflation every five years, rounding to the nearest $10,000.

Penny Benny currently has a large surplus balance in its insurance reserve.

Penny Benny has no legal authority to regulate pension funds in the United States.