Option: Regulation of Financial Institutions

Regulations have a major impact on how financial institutions are managed, how they deal with consumers, the types of products they offer, the structure of the industry, and the types of risks they take. The interplay between financial institutions and their regulators is so intertwined that one cannot define an institution or understand what it does without understanding the regulations that constrain its behavior.

Your project must include the following elements:

1. Discuss the reasons why banks are regulated.

2. Describe the history of bank failures in the United States; the steps policy makers have taken to reduce the incidences of failure; and the lessons learned from previous bank failures.

3. Provide details on how this plan is evaluated from success to failure. In other words, provide scenarios or key drivers to help determine the plan's success.

4. Explain why bank regulators are so concerned about capital adequacy for the banking systems.

5. Describe the responsibilities of the various bank regulatory agencies.

Your paper must meet the following requirements:

It must be 6 pages in length, not including the cover and references pages.