Discuss the impact on local bank behavior of this change

Reference no: EM13294293

As recently as a decade or two ago banks and other consumer based financial institution like credit unions and S & L's made the majority of their profits on the interest income of the financial products that they sold. Their focus therefore was local or regional and they had a very vested interest in the health of the local and regional economy. With the advent of financial market deregulation and the securitization of the loan portfolio's from these institutions the future interest income was sold and this changed the focus of profits from interest income to fee generation. Please discuss the impact on local bank behavior of this change and how this contributed to the financial meltdown in 2007 - 2008 and its aftermath.

Reference no: EM13294293

Questions Cloud

Which resistor dissipates the most power and why : Three resistors having resistances of R1=1.54ohms, R2=2.37ohms, and R3=4.78ohms respectively, Which resistor dissipates the most power and why

How much will you pay your friend each year : You worked out a deal with your friend to pay the balance off in five equal payments over the next 5 years, plus 10% compound interest on the unpaid balance at the end of each year. How much will you pay your friend each year?

Find speed in of the outer rim of the ring : A space station has a diameter of 1000 ft (300 m) and to rotate at a rate sufficient to cause occupants in the outer rings to experience a centripetal force roughly equal to the gravitational force of the moon

Design nd implement sequential circuit for even parity check : Design and implement a sequential circuit for even parity check using T flip-flops. A binary code is received bit by bit in serial. The circuit output is 0 when the number of 1s in binary code is even; otherwise, output is 1.

Discuss the impact on local bank behavior of this change : Please discuss the impact on local bank behavior of this change and how this contributed to the financial meltdown in 2007 - 2008 and its aftermath.

Define the molecular formula of the white substance : The excess HCl in the solution required 94.9 mL of 0.128 M NaOH for complete neutralization in a titration. What was the molecular formula of the white substance

Psychoanalytical theories : What are the main premises each of the psychoanalytical theories (psychological), the social control theory (sociological), and the heredity-based theories (biological)? Explain at least three premises for each theory.

What are the address lines of the 8k and entire system : Given an 8kx8 device, you need to create an entire memory system of64Kx16. How do you create it using the 8Kx8 devices and what are the address lines of the 8k and entire system

Describe the company the nature of its business : Describe the company, the nature of its business, a specific product or service, and how that product or service is produced and distributed by the company.

User Account

All Pages