FIN 260 Lecture Notes - Lecture 6: Jpmorgan Chase, Commercial Bank, Investment Banking
Document Summary
Traditionally help companies raise capital: help corporations design securities w/ features that are currently attractive to investors, buy these securities from the corporation, resell them to savers. Serve a variety of savers & borrowers: checking accounts, saving accounts, mortgages, business loans. Q: what are some examples of commercial banks: bank of america, citibank, wells fargo. Glass-stegall: separated commercial bank & investment bank. Bliley-leach-gramm: requires financial institutions companies financial/investment advice, or insurance to explain their info- sharing practices to their customers & to safeguard sensitive data. that offer consumers financial products/services like loans, Dodd-frank: places regulation of financial industry in hands of the government. Volker rule: prohibits banks from conducting certain investment activities w/ their own accounts & limits their ownership of & relationship w/ hedge funds & private equity funds aka covered funds: mutual funds: Corporations that accept money from savers & then use funds to buy stocks, bonds, etc. Pool funds & reduce risks by diversification.
