Theory problems based on US regulations
1. What have been the two main purposes of U.S. banking regulation? Were the McFadden Act and the Glass-Steagall Act consistent with these two main purposes? Explain.
2. Which regulatory agency examines and supervises each of the following companies:
a. First National Bank
b. Farmer\'s State Bank
c. Hometown State Bank (not FDIC Insured)
d. Wells Fargo, a bank holding company
3. Distinguish between economies of scale and economies of scope? Which is more likely to be the driving force explaining a merger between two banks? Between a bank and another financial services company?