FIN 365 Assignment 4
- In light of the current situation, I would say that banks should be regulated at some level. While I understand that we live in a capitalist society, without some forms of regulation, some avoid any social responsibility and seek the highest profits possible even at the expense of many. Knowing that the banks are at the root of many of today's problems, it is clear that they need some controls put in place to prevent the same lending and decision making. While there are two sides to this issue, aloong with the regulation should be some form of teaching and public service to inform the public of what risks are involved in various loans. However, some of the loans that were offered should never have been put in place. Too much risk, and too much short term reward has us in the current recession.
- —Guest Chris Shotwell
Deposit Withdrawals???
- Banks have come under a watchful eye from Uncle Sam as have other businesses who have grown into such polarizing figures that their demise will have a great impact on our economy. And this is something anyone would agree with. While corporations may continue to grow and post profits (or losses), once they have become a large force in the overall economy the regulations and policies shold be beefed up once they have taken up a percentage of the market. Many consumers are now left holding the bag now that government has stepped in to bail these companies. The banking industry needs to be monitored close in regards to lending practices so that this doesn't happen again. The US has had many growing pains through the years but the last of which have become almost unbearable for consumers to endure while paying the most taxes we have ever paid.
- —Guest Gary Daniel Gullett
Regulation on banks
- I do believe that banks should have more regulation. One of the main reasons we are in a recession is because banks used our money for unnecessary needs. For example, executive employees of banks would go on retreats that were very lavish and very expensive. However, banks are not the only ones to blame for the economic recession. As many have stated before, people were taking out loans left and right that they could not afford to pay back. For example, many people were taking out loans to pay off other loans and continuing to get themselves into debt. This is a cycle that needs to stop. People need to stop taking out loans to pay bills and banks need to have more regulations.
- —Guest Elizabeth Jefferson
Regulation on Banks
- Yes, regulation on banks should be increased. Banks are the starting cause of all the collapses that this economy has faced in the past. Banks need to have regulation increased in order to respect and acknowledge their stakeholders in the right way. Because banks did not maximize their shareholder wealth, they almost failed in 2008 and the beginning of the Great Recession. Banks have not been loaning money in the right ways-that is through loans and credit cards. They need to adopt the Prudent Man Rule once again and invest depositors’ money like they would their own. If regulation on banks increases the economy will run more smoothly. Shareholders, owners, investors, and banks will all know their place. Long-term wealth and responsible decisions will be maximized. All of the recent short-term benefits processes will be thrown out the door and the banks will start to run ethically for the benefit of the whole economy including themselves.
- —Guest Michelle Haigis
FIN 365
- Yes, the government needs to increase monitoring and regulation for banks, at least large federally insured banks. Although banks cannot control peoples decisions to live 'outside their means' they can control the amount of money these consumers can obtain. Loan officers and banks were focused on short term monetary gain without taking the time to consider how these interest rates and payments would be made in the future. Seems like the increase in loans and the housing market helped the governemnt turn a blind eye to the risk that were being taken. Legislation is needed to help prevent similar situations from happening again. Perhaps they could begin with new criteria for loans, and stiff penalties to banks who loan outside these criteria. Although I am against big government and over regulation something must be done to protect our investments and prevent the loss of our 401k and Social Security monies.
- —Guest Jason Allen
365
- Yes I do think stroner restrictions need to be put on banks. If the government doesn't make the banks answer to them no one can. The banks have simply messed up and like a teenager need restrictions. Everyone wants a big house but not everyone can afford it. I believe the banks lent money to people knowing they couldnt make their payments. I believe that the average person needs some one to stand up for them and it needs to be the government.
- —Guest Vanessa Adkins
FIN 365
- I do NOT think regulation on banks should be increased. Regulation on banks is part of the fuel that has caused the "housing crisis, this can be seen in legislation like the Community Reinvestment Act (CRA). This legislation encouraged lending to low income demographics and people who otherwise couldn't afford loans. I lived in Florida, one of the worst hit states, during this time I noticed how easy it was to get a loan, I had 20 year old friends with no credit, no down payment, and no substantial income purchase properties. The people who purchased these loans based on future assumptions are the ones to be blamed in this case, the government should have no say in who gets a mortgage and who doesn’t. Banks are for profit corporations! Without regulations like the CRA they are going to make intelligent decisions about who they loan to so that they can continue to operate at maximum profit, if they choose to make bad decisions anyways they will fail (and no one is too big to fail). On t
- —Guest Paul Ostering
FIN 365
- I do NOT think regulation on banks should be increased. Regulation on banks is part of the fuel that has caused the "housing crisis, this can be seen in legislation like the Community Reinvestment Act (CRA). This legislation encouraged lending to low income demographics and people who otherwise couldn't afford loans. I lived in Florida, one of the worst hit states, during this time I noticed how easy it was to get a loan, I had 20 year old friends with no credit, no down payment, and no substantial income purchase properties. The people who purchased these loans based on future assumptions are the ones to be blamed in this case, the government should have no say in who gets a mortgage and who doesn’t. Banks are for profit corporations! Without regulations like the CRA they are going to make intelligent decisions about who they loan to so that they can continue to operate at maximum profit, if they choose to make bad decisions anyways they will fail (and no one is too big to fail). On t
- —Guest Paul Ostering
FIN 365
- Yes, regulation on banks should be increased. They should have to take responsibility for their actions, just as the people who took out loans they couldnt afford should have to take responsibility for their actions. The banks should have known better than to loan money to individuals who obviously couldn't pay back the money. Now, people are losing everything they have worked so hard to get. So, yes, banks should most definitely be regulated starting with stricter rules on loans.
- —Guest Stacey Hanson
Assignment #4
- I believe that banks should be regulated by the government. On one hand I am leery to give the government anymore power, but it seems that the so called banks that were to big to fail took part in activities that were damaging to the economy in the long run. They had to have known that making investments in toxic investments would fail sooner or later. There always comes a time when the bill collector comes a knocking, now is that time for Americans that got over their heads in debt.
- —Guest Crystal Owens
Bank Regulation - FIN/MNGT 365
- Regulation on banks should be increased. Although I do not believe it should be harder to obtain loans since we're currently in a recession, I think that banks should only give reasonable loans and stop risking their shareholders' money. The housing crisis basically started this economic hardship, and since it's so difficult to obtain loans now, it's going to be hard to turn the overall well-being of the economy around. Regulations on banks should make it smarter to loan money - not riskier. Ethics could play a large role in the recovery of the banks. By practicing ethical banking, the recession will end much more quickly. If companies continue to give incredible bonuses to their CEOs, this will prolong the economy's recovery.
- —Guest Jennifer Wiseman
MNGT 365 Assignment 4
- Yes, I think that regulations on banks should be increased. We are in this mess to start with because people trusted banks and the government with their money, these same institutions were not being held socially responsible for what they were doing( i.e. giving out bonuses that they didn't have and investing in things they shouldn't be with customer deposits). The situation is slowly improving but old habits die hard so just to avoid the same or worse problems in the future regulations should be put into action now.
- —Guest Jennifer Skaggs
MNGT 365 Assignment 4
- Yes, I strongly believe that bank regulation should be increased for several reasons. This great recession that we are presently in was triggered by large banks loaning massive amounts of money to middle class individuals to buy new homes that they could not afford in the long run. Some may question is the tax policies fair that large banks have to deal with while others call for tighter regulations on banks taking advantage of clients to "sell" them a loan. In my opinion I feel the federal government should have focused a great deal of attention on large banks that loaned these clients money to purchase homes that they could not afford instead of squeezing the smaller banks in rural America from loaning money to small business owners. I feel entrepreneurs right now in this economy is not given a fair chance because of the strict bank regulations on large banks that has trickled down to nearly making it impossible for entrepreneurs wanting to start a business to get the much need mone
- —JustinNTurner
Bank Regulations have Increased
- As aof January 1, 2010 many new regulations went into effect. Banks now how Good Faith Estimates that are three pages long and HUD's or settlement statements that are four pages. There are tolerance levels on fees and a loan officer has to be right on the money in estimating loan costs or the bank will pay the difference. By the end of the year all high priced loans will be escrowed. Although I'm sure many will find ways to get around the paperwork customers are given now 7 days to shop around for loan rates and to compare before being able to close the loan and if something changes in the mean time the customer has to wait another three days after the bank rediscloses the terms. I think that many of these new regulations are rediculous and very tricky for a loan officer in keeping up with the time sensitive material. I believe that it also bad for the customer. Let's face it, time is money and we are waisting time.
- —Guest Shelley Brackett
Banks need to use more common sense
- Should Regulations on Banks be Increased? I do not beleive that the regulations need to be increased, we already have the regulations needed in place, the federal government could control them but I don't think they have time to do their jobs. Banks (The Large Banks) especially need to be more aware of who they are lending to. For example, I received a home loan in 2006 I beleive for a substantial amount of money. I was unemployed at the time, stayed home with my infant children, and my husband was a union laborer, we barely got by. We sold our then home and purchased a new one, borrowing about $70,000. The process was very easy, our income was never questioned, we asked and we received, no problem, but in all reality there was no way we could afford this and have struggled for the past few years just trying to get it paid every month. I now have a full-time job to help out and it is still hard for us to come up with almost $700.00 a month.
- —Guest Melanie Thompson
