Topics in Financial Institutions. Financial Market Crisis: Their Causes, Consequences, and Remedies

Case/Term Project (Topic and title you decide)
• A. Must be typewritten, double-spaced, type no larger than 12 point, 1 inch margins or less.
• B. About 8-10 pages in length, not including references, title page, figures, or tables.
• C. Cases will be graded on six (6) equally-weighted evaluative criteria:
• (a) Objectives/Problem Statement;
• (b) Accomplishment of (a);
• (c) Depth of treatment from scholarly sources;
• (d) Logic of organization, argument and presentation;
• (e) Readability, syntax, spelling; and
• (f) Overall evaluation.
All ideas, hypotheses, conclusions not original with the author must be accompanied by appropriate citations. Use the style for citations followed in the text. Internet citations should include the name of the author(s), complete URL, date of the posting or publication, date of access, publisher and city, state and country. Case reports are the product of the student and should be kept by them throughout the course. Copyright by the student is assumed. Be sure to retain a copy of the paper before it is submitted. (I choose the 10 sources require but it is not the must be. Just add the sources if you need. Less than 10 is find but not less than 8, more than 10 is find but not more than much.)
Case Write-up Guidelines
1. Executive Summary of results and conclusions (less than 1 page).
2. A brief overview of the case and a statement of the problem to be addressed.
3. Tools, techniques or analytical methods to be employed to address the central problem of the case.
4. A discussion of your analysis.
5. Summary and conclusions.
The example of Interesting and Provocative Topics in Financial Institutions (you can choose one or you can do your own topic but it must be to relate to financial institutions)
• 1. Federal Deposit Insurance Corporation -purposes, effects, and prospects
• 2. The international debt crisis-causes, consequences, and remedies
• 3. The U.S. agricultural financial crisis-causes, consequences, and remedies
• 4. Prudential regulation-its future in a deregulated environment and relationship to federal deposit insurance
• 5. The S&L crisis-causes, consequences, and remedies
• 6. Interstate banking: Issues of competition and expansion of customer base
• 7. Electronic payment systems-their impact on the scope of depository institutions markets
• 8. Proposed deregulation and its past and future impact on financial institution behavior and performance (choose a financial institution)
• 9. Free Banking-historical perspective and policy issues in the context of the current debate on banking deregulation. What is "free banking?"
• 10. Issues related to expanded powers for depository institutions-e.g., securities and insurance underwriting, equity investments, brokerage services, commercial activities
• 11. "Too-Big-To-Fail" doctrine-purposes and consequences
• 12. Securities Underwriting: Competition and pricing of underwriting services. What factors determine their fees and the extent of competition? Perhaps you may want to pick a security type - municipal bond, corporate bonds and stock, junk bonds, utilities, etc. Effects of entry by large banks if the Glass-Steagall prohibitions are lifted
• 13. Financial Market Crises: Their causes, consequences and remedies
• 14. Alternative Mortgage Instruments, the primary and secondary mortgage markets, and the S&L industry
• 15. Internationalization of Financial Markets and Exchanges: Analyze the development of these markets in Tokyo, London, Hong Kong, Singapore, etc. and how they are coordinated to provide competition for financial intermediaries in the U.S. Consider also European economic integration-EC '92 and adoption of the EURO in January 1999.
• 16. The U.S. Government Securities markets' organization and the implications of monopolistic practices for pricing and stability of these markets
• 17. FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act of 1989) and its effects on the future of S&Ls and the industry.
• 18. The RTC (Resolution Trust Corporation) and its effects on real estate markets and as a means of conducting the disposition of failed depository institutions' assets.
• 19. Securitization of depository institutions' assets. Requires little liability issue since assets are not held, but it requires the depository institution to provide a market for these instruments.
• 20. The "Credit Crunch." Define. Was there a "credit crunch" in the early 1990s or was there only a lack of borrowers of good credit quality that needed financing.
• 21. FDICIA (Federal Depository Insurance Corporation Improvement Act of 1991). Significant mandates to protect the FDIC Insurance Funds from being depleted (suggestion 6 above is related), established Prompt Corrective Action, capital standards for market, exchange rate, and interest rate risk, and risk-based deposit insurance premiums.
• 22. Reigle-Neal Interstate Branching and Banking Efficiency Act of 1994. Permits interstate branching for the first time throughout the U.S. unless specifically blocked by state law. Effective June 1997. The effect of this act may have been dissipated over the previous 14 years of interstate banking or it may be a strong impetus to banking consolidation, efficiency and competition.
• 23. Bank for International Settlements: Basle Accord and Revisions since 1989. Established the first international agreement on capital adequacy standards leading to the current proposals for a "models-based" identification for required capital for a banking and investment banking companies.
• 24. Asian Crisis Beginning in 1997. The collapse of the Thai baht in 1997 began the Asian Crisis that led to a collapse of several southeast a Asian economies (e.g., Indonesia) and crippled the South Korean economy.
• 25. Russian Default and Devaluation of August 1998. Led to a major flight to quality threatening the stability of global financial markets and the $3.6 billion bailout of Long Term Capital Management by major banks and investment banks in the U.S. and abroad that had interests in and loans to LTCM.
• 26. Gramm-Leach-Bliley Financial Modernization Act of 1999. Repealed the Glass-Steagall Act of 1933 and broadened the permissable activities of banks and other financial services firms.
• 27. Bank for International Settlements: Basle Capital Accord II Revisions to Start in 2007.
• 28. Dodd-Frank Wall Street Reform and Consumer Protection Act, July 2010