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.:- M945579

Have any Question? 


Related Questions in Basic Finance

1 how does the risk associated with investment in a

1. How does the risk associated with investment in a partnership differ for the general partner versus a limited partner? 2. What are the different ways that the general partner is compensated? 3. Why do you think the Ta ...

Option valuation projectquestion 1 calculate the normal

Option Valuation Project Question 1: Calculate the normal distribution and cumulative distribution for "d" ranging from -5 to +5 in increments of 0.2. Assume the distribution is standard normal (mean = 0, variance =1). U ...

1 profits might be compared with sales assets or

1. Profits might be compared with sales, assets, or stockholders' equity. Why might all three bases be used? Will trends in these ratios always move in the same direction? 2. What is the advantage of segregating extraord ...

Angelo purchased a 7 annual coupon bond one year ago for

Angelo purchased a 7% annual coupon bond one year ago for $987. At the time of purchase, the bond had six years to maturity. Over the past year inflation has been 3.2%. The market required return on this bond today is 8% ...

A firm is considering the development of severalnew

A firm is considering the development of severalnew products. The products under consideration are listed in the next table. Products in each group are mutually exclusive. At most, one product from each group will be sel ...

The following excerpt is taken from a publication of the

The following excerpt is taken from a publication of the American Institute of Certified Public Accountants (we won't give the title since it is the answer to one of the questions): Great strides have been made by the FA ...

1corporate share repurchase programs are often touted as a

1. Corporate share repurchase programs are often touted as a benefit for shareholders. But Robert Gabele, director of insider research for First Call/ Thomson Financial, noted that many of these programs are undertaken s ...

Discussion lets discuss the following based on the assigned

Discussion: Let's discuss the following (based on the assigned and recommneded reading): 1. Is Paying a Premium for Certain Securities Worth the Price? Are portfolio managers willing to pay a premium for securities that ...

1 when an author submits a manuscript to a journal what is

1. When an author submits a manuscript to a journal, what is the general process by which the decision whether or not to publish the paper is made? 2. Distinguish between a paper session and a poster session.

A news story reported that the former ceo of homebuilder kb

A news story reported that the former CEO of homebuilder KB Home was convicted "of four felony counts in a stock option backdating scam." The article goes on to note: A stock option allows an employee to purchase a compa ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen