How would President Obama's proposal to limit bank size and prohibit certain trading activities affect corporate borrowers?
A. It would result in less access to capital.
B. It would improve access to capital.
C. It would not affect access to capital.
How would President Obama's proposal to limit bank size and prohibit certain trading activities affect corporate borrowers?
A. It would result in less access to capital.
B. It would improve access to capital.
C. It would not affect access to capital.
I tend to think A.
I opposed the bail outs and stimulus, and I oppose most financial regulation beyond transparency. However, even as rabidly anti government as I am, I don't see how these institutions can accept tens of billions of dollars of government bailout money and then turn around and snivel about government regulation. it seems to me we did the same king of thing on a different scale with the S&L bailouts (which I opposed), and here we are again. I'm pretty sure we'll be doing something similar again in about 5 to 10 years.
as much as I disagree with the bail outs at least now were bailing out our own american companies. I still harbor great bitterness over bailing out the banks of mexico back in the 80's.
The answer should be B. Because if these banks don't have Prop Desks ('Proprietary Trading Desks') in order to make up lost revenue they may have to do it the old fashioned way and actually start making loans again.
Hey, one of my professors from graduate school is quoted in >this< article, speaking about the new bank regulations and the affect on lending.
The Banks in Australia are heavily regulated, by the government. I work for one of the big ones.
The Bank made an enormous profit bought one of the smaller banks and several of the small home-lending companies.
This is because there are strict rules on debt and lending. Australia as a whole has come out of the GFC and we are doing very well.
Most employers did their best to keep staff as they they knew that when the crisis ended it would be very expensive to hire and retrain new staff.
Job losses were highest amongst those at the stock exchange, merchant bankers, and big end of town.
Most Australians don't like those people and couldn't care less if they had to sell their Aston Martin DB9 and move from Avalon or Bondi to Penrith.