Reference no: EM131439812

Assignment

I answered question number 2 but I didnt answer f, g and h. also plz try to change the answers from A to E coz I copyed them.

1. Go to the Board of Governors of the Federal Reserve System website (https://www.federalreserve.gov/) and determine the purpose of the following regulations.

a. Regulation B

b. Regulation C

c. Regulation D

d. Regulation E

e. Regulation K

f. Regulation O

g. Regulation T

h. Regulation U

i. Regulation Z

2. For each of the actions described, explain which government agency or agencies a financial manager must deal with and what laws might apply:

a. Chartering a new bank.

For chartering a new bank in the United States either the state banking commission of the state, where the bank is to be headquartered must be consulted, or the Comptroller of the Currency must be sent an application for a national charter. The National Bank Act governs national charters while state charters are governed by rules laid down in state banking statutes.

b. Establishing new bank branch offices.

Requests for establishing new branch offices must also be made of the bank's chartering agency-either the state banking commission for state-chartered banks or the Comptroller of the Currency for national banks in the United States.

c. Forming a bank holding company (BHC) or financial holding company (FHC).

Requests for holding company formation must be submitted to the Federal Reserve Board or, for certain routine transactions, to the Federal Reserve Bank in the district. Some states require their banking commissions to be notified if a holding company acquires a bank within the state's borders.

d. Completing a bank merger.

The Bank Merger Act requires the approval of a bank's principal federal supervisory agency for a proposed merger even if the bank is state chartered. Mergers involving national banks must be approved by the Comptroller of the Currency and by the state banking commission if a bank has a state charter of incorporation. The merger must also be reviewed by other federal agencies that have supervisory responsibility for a bank, such as the FDIC, the Federal Reserve, and by the U.S. Department of Justice.

e. Making holding company acquisitions of nonbank businesses.

Request for acquisitions of nonbank businesses must be approved by the Federal Reserve Board. For some more routine transactions, the Federal Reserve Bank in the district can make the decision.

f. Underwriting an issue of corporate bonds

g. Hedging in the derivatives market

h. Patriot Act

3. What is the contribution to the asset base of the following items under the Basel III requirements?

a. $10 million cash reserves

b. $50 million of 91 day U.S. Treasury bills

c. $1 million in general obligation bonds

d. $40 million repurchase agreements ( against Treasury bills)

e. $500 million of commercial and industrial loans rated AAA

f. $100,000 performance-related standby letter of credit to a municipality issuing general obligation bonds

g. $5 million 1-4 family home mortgages, 100 days past due

h. $2 million loan to a foreign bank, OECD CRD rated 2

i. $6 million two-year currency swap $500,000 current exposure

j. $25 million cash items in the process of collection

4. State the overall purpose for the following banking acts.

a. National Banking Act of 1864

b. Glass-Steagall of 1933

c. Bank Holding Company Act of 1956

d. Depository Institutions Deregulation and Monetary Control Act of 1980

e. Riegle-Neal Banking Law of 1994

f. Gramm-Leach-Bliley Act of 1999

g. Check 21 Act of 2003

h. Dodd-Frank Act of 2010.