Financial Crisis Response For Financial Institutions Essay

980 Words Mar 2nd, 2015 4 Pages
Cansu Cebeci
James H. Mccann
Financial Management
26 February 2015 Financial Crisis Response
There are no financial markets immune to the sweeping changes for financial institutions as a direct response to the financial crisis of September 2008. The U.S. Congress very hastily set to work and developed a Trouble Asset Relief Program, or bailout of some of the largest financial businesses in the United States. The initial bank bailout was to cost American taxpayers in excess of $350 million, and thusly also set into motion the federal government stepping in and overhauling the entire financial industry as we knew it. These changes were designed to regulate and affect the overseeing and supervision of financial institutions by designing new procedures for large financial companies to operate. They led to the creation of a new federal agency responsible for enforcing and implementing compliance with consumer financial laws. They consisted of more stringent regulations regarding capital and over the counter derivatives. Credit rating agencies have undergoing reform and corporate governance and executive compensation have been overhauled and restructured. These regulations altered risk-taking profiles, increased surveillance and overseeing of banks and anybody involved in financial markets and imposed penalties for failure to comply with the new order of business. This complete new order of business is officially known as the Dodd-Frank Wall Street Report and Consumer…

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