Savings and loan association

Q1: According to the textbook, a moral hazard is described as being “the problem created by asymmetric information after a transaction occurs” (Mishkin & Eakins, 2012, p. 26). As far as financial markets are concerned, a moral hazard exists when a lender understands the risk that a borrower might engage in activities that would hinder their ability to repay a loan. As the threat of a moral hazard increases, the likelihood that a borrower will repay a loan decreases (Mishkin & Eakins, 2012). The concept of moral hazards is important to financial institutions because being aware of its existence allows those institutions to implement measures aimed at minimizing the potential threats posed by moral hazards. In a case where a business is in…

the saving associations in the early 1980s. These pieces of legislation were enacted to minimize the net withdrawal flow of deposits from the institutions, which would help reduce the liquidity problem. For example, NOW accounts allowed for an unlimited amount of checks to be written to each deposit account, which allowed for cash to be more readily available. Thrifts were now able to make consumer and commercial loans to issue transaction accounts. According to the Federal Reserve, the…

comparing the different types of mortgage loans, and creating a list of pros and cons of each, we can make it easier to choose which is right for us. The first thing we need to determine is what exactly a mortgage is. A mortgage is a document that makes property security…

Profitability is an important measure that describes the associations of total amount of profit with various factors. And this study is talking about the influence of commercial banks determinants on the performance of commercial bank in Canada over the time period from 2005-2010. The significant part to success for most financial institution is consistency and steady running. As a result, profitability is the most important and consistent indicator as it contributes huge amount of profit that…

In the court case of Vinson V. Taylor, Mechelle Vinson was nineteen years old when she was hired as a teller-trainee at a branch of the company, Capitol City Federal Savings and Loan Association located in Washington D.C. in 1974. In May 1975, Vinson stated that Sidney Taylor, her supervisor, started to sexually harass her in the workplace. Vinson initially turned down Taylor’s offer to sexual intercourse, the two eventually got involved with each other. She claimed that Taylor stated that he…

Thesis: The actors involved in the Great Recession as well as those that facilitated the current Chinese real estate bubble have yet to face any criminal prosecution; which stands in disproportionate contrast to the hundreds that were jailed in the better handled Savings and Loan Crisis that was significantly less impactful on the global economy. The recent 2008 Financial Crisis, dubbed the Great Recession, has been one of the worst financial panics to grip this nation since the Great…

The Federal National Mortgage Association: An Entrepreneurial Agency The Federal National Mortgage Association (FNMA) functions as an entrepreneurial agency. According to Wilson, an agency is entrepreneurial when the costs are heavily concentrated in some industry, profession, or locality, and the benefits are spread over many people. This type of agency faces hostile interest groups that bear the high per-capita costs, while its supporters are less organized because of the low per-capita…

of a firm’s strategy. There are many different approaches to evaluating a firm’s strategy. The purpose of this paper is to perform a strategic assessment of American Automobile Association (AAA) and the Auto Club Group, one of AAA clubs, growth in the banking sector. The process includes introducing the firm and its industry, the firm’s interesting action and/or change, comparison to a firm within the same industry and the industry itself, and the final assessment of the company’s strategy.…

impractical and unprofitable for companies that want to offer short-term or payday-type loans. If this kind of lending becomes unprofitable or is simply banned, what might…

Is Student Loan Debt Harder on Women? A recent report by Pew Research confirms that the pay gap between men and women is not only real, but it is still very much alive and well to this day. The gap is even wider for black and Latino women, the study found. The result is that those making less money are not able to repay their student loans as quickly and are saddled with greater debt loads. A study by the American Association of University Women found that Asian women paid down their student…