The Shadow Banking System Analytical Essay by sublime

The Shadow Banking System
Analyzes the development of the shadow banking system (SBS), its effect on the global economy and its role in the crisis.
# 120162 | 3,360 words | 11 sources | MLA | 2010 | US


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Description:

This paper, to understand the meaning of the shadow banking system (SBS), first examines the history of the financial system over the last decade. Next, the author reviews the criticisms and realities of the SBS and assesses the costs and benefits of the shadow banking system to the economy. The paper concludes by addressing ways in which the system should be reformed in order to provide future sustained economic prosperity.

Table of Contents:
Introduction
Rise of the Shadow Banking System
The Evolution of Securitization
Shadow Banking: 2002-2008
Criticisms and Realities
The "Volcker Rule" and the Dodd-Lincoln Proposal
Alternative Fund Regulation
Reforms and Recommendations
Security Reform: Derivative Clearinghouses & Re-starting Securitization
Maintain Fed Powers
Change Incentive Structures
Final Thoughts

From the Paper:

"In 1970, the Government National Mortgage Association ("Ginnie Mae"), an agency of the US government, issued its first mortgage "pass-through." This was the beginning of securitization. This process channeled debt capital into the housing market because the explicit government guarantees and diversification benefits attracted investors. Investors could now own pools of mortgages to augment their portfolio of stocks and bonds. The value of securitization was not simply that it allowed the institutions that originated the mortgages to continue lending."

Sample of Sources Used:

  • Greenspan, Alan. The Crisis, March 9, 2010.
  • Bush, President George W. America's Ownership Society: Expanding Opportunities"., June 17, 2004, posted by the Office of the Press Secretary, August 9, 2004.
  • International Directory of Company Histories, Vol. 45. St. James Press, 2002.
  • Osinski, Michael "My Manhattan Project--How I helped build the bomb that blew up Wall Street". New York Magazine, March 29, 2009.
  • "PENN MUTUAL, SALOMON BROTHERS ANNOUNCE NEW FINANCIAL INSTRUMENT" NEW YORK, Dec. 4 /PRNewswire/.

Cite this Analytical Essay:

APA Format

The Shadow Banking System (2010, June 06) Retrieved November 25, 2020, from https://www.academon.com/analytical-essay/the-shadow-banking-system-120162/

MLA Format

"The Shadow Banking System" 06 June 2010. Web. 25 November. 2020. <https://www.academon.com/analytical-essay/the-shadow-banking-system-120162/>

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