Governments have attempted to eliminate or mitigate financial crises by
regulating the financial sector. One major goal of regulation is
transparency: making institutions' financial situations publicly known
by requiring regular reporting under standardized accounting procedures.
Another goal of regulation is making sure institutions have sufficient
assets to meet their contractual obligations, through reserve
requirements, capital requirements, and other limits on leverage.
Some
financial crises have been blamed on insufficient regulation, and have
led to changes in regulation in order to avoid a repeat. For example,
the former Managing Director of the International Monetary Fund,
Dominique Strauss-Kahn, has blamed the financial crisis of 2008 on
'regulatory failure to guard against excessive risk-taking in the
financial system, especially in the US'.[26] Likewise, the New York
Times singled out the deregulation of credit default swaps as a cause of
the crisis.[27]
However, excessive regulation has also been cited as
a possible cause of financial crises. In particular, the Basel II
Accord has been criticized for requiring banks to increase their capital
when risks rise, which might cause them to decrease lending precisely
when capital is scarce, potentially aggravating a financial crisis.[28]
International
regulatory convergence has been interpreted in terms of regulatory
herding, deepening market herding (discussed above) and so increasing
systemic risk.[29] From this perspective, maintaining diverse regulatory
regimes would be a safeguard.
Fraud has played a role in the
collapse of some financial institutions, when companies have attracted
depositors with misleading claims about their investment strategies, or
have embezzled the resulting income. Examples include Charles Ponzi's
scam in early 20th century Boston, the collapse of the MMM investment
fund in Russia in 1994, the scams that led to the Albanian Lottery
Uprising of 1997, and the collapse of Madoff Investment Securities in
2008.
Many rogue traders that have caused large losses at financial
institutions have been accused of acting fraudulently in order to hide
their trades. Fraud in mortgage financing has also been cited as one
possible cause of the 2008 subprime mortgage crisis; government
officials stated on September 23, 2008 that the FBI was looking into
possible fraud by mortgage financing companies Fannie Mae and Freddie
Mac, Lehman Brothers, and insurer American International Group.[30]
Likewise it has been argued that many financial companies failed in the
recent crisis because their managers failed to carry out their fiduciary
duties.
NEWS ON BOOZE : THE TRUTH THE NEWS WILL NOT TELL YOU . Your Source of Daily Alternative & Independent News a daily follow up of Investigative Journalists Whistleblowers Conspiracy Theorists Truthers Visionaries and Freedom Fighters . Freedom is real and attainable
Thursday, January 9, 2014
Geopolitical Financial and Military Analysis ~ TIM ALEXANDER / CHRIS HARRIS - Dr Deagle Show 2014/01/09
Dr Deagle Show 2014/01/09 - TIM ALEXANDER / CHRIS HARRIS
Tim Alexander - Geopolitical Financial and Military Analysis - Chris Harris - Update on Fukushima and next release of radiation ..
Trunews December 30, 2013 - Brannon Howse and Dr. David Berman
Guest host, Dr. David Berman, is accompanied by Brannon Howse to discuss his latest book, "Religious Trojan Horse: How False Teaching from Neo-Evangelicals, the New Religious Right, and the Spiritual Left Have Invaded the Church to Establish a Coming Religious World Government."
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