Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Economists representing the Federal Reserve, the FDIC, and the Office of the Comptroller of the Currency have gathered for meeting discuss a formal response to concerns that top managers at some of the nation's largest banks have expressed in a joint memorandum issued by the banks to all three regulators. The bank officials are concerned about the on-going shrinkage of bank assets as a share of total assets of financial institutions in the United States. In the late 1990s, assets of commercial banks as a percentage of total assets of U.S. financial institutions fell below mutual funds' share of total financial institution assets. If current trends continue, the share of total financial assets in pension funds also will bypass banks' share of total assets sometime before 2010.

The bankers admit that they earned relatively high net interest margins and returns on equity and assets during the 1990s even as these market share trends were in progress. They also admit that their fee income and trading profits earned from derivatives and other off-balance-sheet activities have increased significantly in recent years. Nevertheless, the bankers are getting nervous. Isn't it time, they ask in the memorandum, for bank regulators to start pushing Congress to ease up on their regulatory burden and to toughen the rules for other financial institutions so that banks will have a better chance of pushing back up their institutions' share of total assets among all financial institutions?

How should the Fed, FDIC, OCC economists respond to this argument?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M943281

Have any Question? 


Related Questions in Basic Finance

Once researchers calculate a value for t they compare that

Once researchers calculate a value for t, they compare that calculated value to a critical value of t. What two pieces of information must be known in order to find the critical value of t in a table of critical values?

Suppose your firm is seeking a four year amortizing 290000

Suppose your firm is seeking a four year, amortizing $290,000 loan with annual payments and your bank is offering you the choice between a $299,500 loan with a $9,500 compensating balance and a $290,000 loan without a co ...

What is the expected relationship between dividend payout

What is the expected relationship between dividend payout levels and the growth rate and availability of positive-NPV projects, under the agency cost model of dividends? What about the expected relationship between divid ...

1 why do savers with small amounts to invest rarely make

1. Why do savers with small amounts to invest rarely make loans directly to individuals or firms? 2. What are transactions costs? What are information costs? 3. What are financial intermediaries? Why are financial interm ...

1 how is preferred stock different from common stock2 what

1. How is preferred stock different from common stock? 2. What is a prospectus? 3. Describe the role of the underwriting syndicate in a firm-commitment offering. 4. Why is the relationship between an investment banker an ...

1 compare and contrast the transport principles of economy

1. Compare and contrast the transport principles of economy of scale and economy of distance. Illustrate how they combine to create efficient transportation. 2. Describe the five modes of transportation, identifying the ...

Fresh fruit inc has a 1000 par value bond that is currently

Fresh Fruit, Inc. has a $1,000 par value bond that is currently selling for $1,277. it has an annual coupon rate of 12.86 percent, paid semiannually, and has 28-years remaining until maturity. What would the annual yield ...

1 distinguish between the operations of a mortgage banker

1. Distinguish between the operations of a mortgage banker and a mortgage broker. What are the five major minimum standards that an independent mortgage broker or loan office must pass to be licensed with the NMLS? 2. Wh ...

Conduct a similar analysis on financial leverage for the

Conduct a similar analysis on financial leverage for the same two companies in given Problem. Problem:- Compare the operating leverage of Toyota Motor Corp. (ticker: J:TYMO) with that of Nissan Motor Company Limited (J:N ...

Milgram conducted his experiments on obedience in the days

Milgram conducted his experiments on obedience in the days before all research was scrutinized by an Institutional Review Board. Imagine, however, that Milgram had submitted his research proposal to an IRB of which you w ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro