New Capital Requirements Effects on Banks
Annotated Bibliography 1: Bank Capital and Stress Testing
This OP assignment relates to bank stress tests and bank capital. Please select 4 articles in highly reputable business journals or business newspapers (examples include, Business Week, Forbes, and Wall Street Journal) that provide meaningful information about the issues described in the following paragraph (in bold)
The question that I would like you to opine about is whether banks have become financially stronger due to the new capital requirements and stress testing or not. For example, Bank of America has paid more than $70 billion in fines for various problems before and during the Great Recession of 2008. At the same time, the Federal Reserve Bank has restricted BofA from paying dividends to shareholders until it is able to increase its capital to the minimum required by the Fed. Do these actions contradict each other or do they work in concert to make a bank like BofA safer. Are there other banks that face similar problems as BofA?
Prepare an annotated bibliography (in APA format) to document your work. If you have not prepared an annotated bibliography before, you can go to the web and search for “APA annotated bibliography” in order to find examples and explanations.
Each reference should clearly indicate where you obtained your information. If you used the web, disclose the hyperlink that contains the directions to your source. Your explanatory paragraph (below each reference) should not exceed 4 sentences. The first 1 or 2 sentences must provide a synopsis of the article that you references. The third and fourth sentence should contain your observations/conclusions about the relevance of what you read to the question (above) at hand. After completing your reporting about the 4 articles that you read, prepare a two paragraph conclusion that responds to the questions above (in bold)
Your report should be prepared using font size 11, double-spaced pages. Bring your work into class (no email) and be prepared to discuss your conclusion.
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Financial crisis have a negative impact on both the government and the corporate sector. In banks they reduce borrowing and leads to low aggregate economic activity. Previous economics crisis have led to reduced borrowing from the banks due to tightening of lending by the banks. Bodies like the Federal Reserve in the USA are formed to restore stability and liquidity in the financial market. They…………..
APA
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