FIN 800 Study Guide - Federal Reserve System, Management System, Government Accountability Office
Document Summary
Two general claims of are defended: defective risk management practices were to blame for the spate of firm failures, regulators with ample authority to constrain financial institutions from taking excessive risks did not do so. Blamed regulatory framework applicable to financial service industry rather than the performance of regulatory agencies. Three government agencies have primary responsibility for the safety and soundness of national chartered banks and thrifts: board of governors of federal reserve system (fed, office of thrift supervision (ots, office of the comptroller of the currency (occ) Securities and exchange commission (sec) responsible for financial integrity of broker-dealers and delineate enabling legislation and is bounded by the purposes and limitations specified therein or in subsequent legislation. Agencies have two means of bringing law to bear on fis: regulation and supervision: regulation includes issuance of regulations, rules, and guidelines and interpretations; supervision includes monitoring, assessing, and enforcing compliance with the rules and regulations.
