Iceland Banking Crisis
The banking crisis that occurred in Iceland first emerged in 2008 and continued for a few years by most accounts. The small country had experienced a vast number of consolidations of banking and financial services over the years and there were only a few dominate players in this industry. Much of the industry had been opened up through liberalization in the industry's regulations that had allowed for a string of mergers and acquisitions to consolidate the industry. In the beginning there seemed to be a lot of advantages to this strategy. One of the benefits is that the industry was able to produce quantities of scale that allowed for expenses related to things like transaction costs to be reduced.

Another advantage to financial deregulation was that the larger firms that emerged had more bargaining power due to their pooled resources to be able to secure investments with higher returns.…...

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Works Cited

Popper, N. (2014, January 15). After Crisis, Iceland Holds a Tight Grip on Its Banks. Retrieved from The New York Times:  http://dealbook.nytimes.com/2014/01/15/after-crisis-iceland-holds-a-tight-grip-on-its-banks/?_r=0

In this regard, the author rightfully targets circumscription of the authority of the major agencies that are responsible for rating private credit which allowed banks to approve many mortgage situations with citizens that were tenuous, at best. The most efficacious way of doing so, particularly when one considers that most banks simply pay these agencies, which are primarily Fitch atings, Standards & Poor's, and Moody's Investor Services, oubini asserts is to issue a removal of the agencies' certification by the Securities and Exchange Commission as "nationally recognized statistical rating organizations." This publicly blessed oligopoly, intended to maintain high standards, has only inhibited competition that would bring down the price of security-rating services (Barrett, 2010).
The commission was widely vilified for not playing a more active role in limiting the unscrupulous behavior of banks that lured investors into poor mortgage situations (no author, 2012)

Ultimately, oudini proposes increasingly strident measures of accountability…...

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References

Barrett, P.M. (2010). "Prophet Making." The New York Times. Retrieved from  http://www.nytimes.com/2010/06/27/books/review/Barrett-t.html?_r=1&ref=books 

No author. (2012). "Securities and Exchange Commission." The New York Times. Retrieved from  http://topics.nytimes.com/top/reference/timestopics/organizations/s/securities_and_exchange_commission/index.html?inline=nyt-org 

Roubini, N.; Mihm, S. (2010). Crisis Economics: A Crash Course in the Future of Finance. New York: Penguin Press.

Sunderland, R. (2010). "Crisis economics: A crash course in the future of finance." The Guardian. Retrieved from  http://www.guardian.co.uk/books/2010/may/23/crisis-economics-crash-course-review

Banking System
The United States banking system has been around for quite a while. Indeed, the Bank of New York was founded in 1784, a scant eight years after the United States was created. The banking system has two major functions. First, they operate an overall payments system. Second, they facilitate and allow for financial intermediation. There was no formal financial system in the colonial states prior to the formation of the United States. The modern form of the banking system has only really been around since the early 1900's. The nascent form of the banks as they exist today was created by Alexander Hamilton. As of the inauguration of George Washington in 1789, only three banks existed in all of the colonies. Generally speaking, banks are typically financial institutions that are chartered and regulated mostly by the state in which the bank or banks operate. The banking system of the…...

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References

Sylla, R. (2016). The U.S. Banking System: Origin, Development, and Regulation -- The Gilder

Lehrman Institute of American History. Gilderlehrman.org. Retrieved 19 April 2016,

from https://www.gilderlehrman.org/history-by-era/economics/essays/us-banking-system-origin-development-and-regulation

Utt, R. (2008). The Subprime Mortgage Market Collapse: A Primer on the Causes and Possible

These funds are now removed from the banking system. Keep in mind that banks use every dollar on deposit to create many more dollars worth of loans, the hit to the banking system and by extension, to the money supply is something approaching 25 to 30 billion dollars. This was a global phenomenon, as the crisis arises interest rates are slashed. So hence, by 2008-2009 the Federal Reserve, Bank of England to many others have pushed interest rates close to zero. He also explains how major players like Mr. Bernake and the Treasury Secretary Henry Paulson affected the crisis and how the steps and how they have left their mark on this financial crisis. He also contends that all crisis have an ebb and flow in their severity and rarely hit once and subside. He vilifies our toxic waste method of having recourse to non-recourse government loans and in…...

e. An amount that is about 1% of GDP) to ensure that the current PAYGO system is solvent for the next 75 years. Thus, 10 trillion dollars problem is not as large and scary if we start acting today to fix the current system).
It is totally manageable."

ut the official plan is somewhat different. ush's administration is trying to introduce private account systems where a fraction of payroll tax will be transferred to private accounts and managed by the future retirees themselves, thus, giving them chance to invest this money into stocks, which have proven to give on average higher rates of return than the Treasury ills which generate rather moderate income.

The opponents of this idea state that this is just a shell-game, where no capital is accumulated and investments are not increased. The overall national capital is not increased, but this plan will cause enormous transactions costs which are estimated…...

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Bibliography

1) Kinnan, Chris Trustees Report: Social Security Collapse Quickening, 2004 available on web:  http://www.cse.org/processor/printer_press.php?press_id=780 

2) Allen, Mike Semantics shape social security debate, Article the Washington Post. Washington, D.C. Jan 23, 2005.pg. a. 04

3) Roubini, Nouriel Social Security Privatization as the Mother of All Con-Man Smoke-and-Mirrors Shell-Games, available on web: http://www.roubiniglobal.com/archives/2004/11/social_security_1.html

There is no distinction between products that are exchanged to fill actual needs and those created to fulfill desires. This disregard for the true dynamic of capitalism creates the false perception that no crises can result. Marx however holds that the apologetics are vocal only in times of prosperity, while they are conspicuously silent during times when crises do ensue.
The most prominent related debate around globalization today revolves around the benefits (or lack thereof) of free market principles. Many hold that the free market system is beneficial for all participants, while others believe that the system perpetuates the poverty of third-world countries attempting to participate in the world market. At the same time, the richest countries become ever richer as a result.

The type of denial of the possibility of increasing poverty is reminiscent of the apologetic denial of crisis. Poverty is increased in poor countries by denying them the…...

If asset bubbles can be leading indicators of recession, that begs the question what assets are the most important? Several studies have shown that housing prices are critical. They were important in Japan and in 2008 in the United States. Babecky (2012) showed that housing prices consistently predict asset bubbles, minus the occasional false positive. Intuitively this makes sense since any sort of bubble will result in more investment in real estate.

There is a further question that is raised in light of the contagion of the 2008-2009 crisis. Prior to that, as Evanoff (2013) notes, several asset bubbles were effectively contained by monetary policy and did little damage. Most bubbles that cause damage do so in the developing world -- Southeast Asia and Russia in the late 1990s for example -- but in the developed world the damage is usually contained. Frankel and Saravelos (2011) examined the indicators that might…...

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Works Cited:

Babecky, J., Havranek, T., Mateju, J., Rusnak, M.,Smidkova, K. & Vasicek, B. (2012). Leading indicators of crisis incidence. European Central Bank Working Papers Series No. 1486.

Chinn, M. & Kucko, K. (2010). The predictive power of the yield curve across time. NBER Working Paper, No. 16398.

Evanoff, D., Kaufman, G. & Malliaris, a. (2013). Asset price bubbles: Lessons from the recent financial crisis. World Financial Review. Retrieved May 1, 2013 from http://www.worldfinancialreview.com/?p=2200

Frankel, J., Saravelos, G. (2011). Can leading indicators assess country vulnerability? NBER Working Paper No. 16047.

Crisis at Footwear International
Case Summary

A multinational shoe manufacturing company has been accused of deliberately designing a shoe with an insole that is offensive to Muslims. Footwear International consists of a number of companies that are semi-autonomous with regard to operations, and are governed by boards of directors that include local business community members. The Footwear International company in Bangladesh experienced severe criticism from local activist student groups who interpreted the design of an insole to include the name of Allah. Further, the students charged the manufacturing company of being owned and financed by Jews, and somehow linked the entire episode to Salman ushdie. The designer of the shoe -- a devout Bengali Muslim who does not speak or read Arabic -- declared that the pattern integrated into the insole design was inspired by Chinese temple bells that she purchased. Further, the insole design had been considered and approved for inclusion…...

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References

Bangladesh. (2011). CIA World Fact Book. Retrieved   / publications/the-world-factbook/geos/bg.htmlhttps://www.cia.gov/library 

People's Republic of Bangladesh. (2010). Department of State. Retrieved  http://www.state.gov/r/pa/ei/bgn/3452.htm 

Husain, I. (2009, Fall / Winter). Pakistan & Afghanistan: Domestic Pressures and Regional Threats: The Role of Politics in Pakistan's Economy. Journal of International Affairs, 63 (1), 1-18. Retrieved  http://jia.sipa.columbia.edu/role-politics-pakistans-economy-0

Marketing in the anking Industry
Prescott Valley, Arizona

Abridged Literature Review

Reflective

Annotated ibliography

While there are many industries in the world that are growing at a rapid pace, one of them is exceedingly doing well. This is because it relies upon the monies and funds of its customers and greatly influences the other industries as well. This is the banking industry. Although a common part of every consumer's life, the banking industry has been growing and developing globally. To understand such growth, the attention instantly goes to the strategic and marketing techniques that have been applied by the people of this industry. Therefore, to gain a thorough and concise outlook of the marketing wonders that have continue to enable the banking industry to succeed at all fronts, the research topic that has been proposed for this research paper is 'marketing in the banking industry'. This topic will not only aid in understanding the marketing…...

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Bibliography

Berger, A.N. (2003). The Economic Effects of Technological Progress: Evidence from the Banking Industry. Journal of Money, Credit, and Banking, Volume 35.

Chaneta, D.I. (2010). Marketing: Packaging and Branding. Journal of Comprehensive Research, Volume 8, 19-30.

Flaunet, M. (2012). Banking Industry Challenges. Retrieved from Deloitte:  http://www.deloitte.com/view/en_LU/lu/industries/banking-securities/banking-industry-challenges/#.UlTYD9KBlac 

Jr., G.P., & Hoskins, L. (2006). The Case for Market-Based Regulation. Cato Journal, Vol. 26, No. 3, 469-487.

Conclusions -- Was TAP Necessary -- A five member Congressional committee echoed a number of criticisms regarding TAP that many consumers, academics, and fiscal analysts were considering. What exactly was the Treasury's strategy with the $700 billion dollars for the supposed bail out? How can Treasury explain the significant gaps in their ability to find hundreds of billions of taxpayer money? In a nutshell, it appears that the departments that control the money given by the Congress (from the American people) have no ability to ensure that the bailed out banks will do what was needed and lend money; have no real standards of measuring success of failure of the program; and for ignoring pointed and specific questions from Congress about their performance (M. Crittenden).

The fact that many of the institutions bailed out with TAP funds, funds from the American taxpayer, did not distribute these funds back into the economy…...

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REFERENCES and WORKS CONSULTED

"2007 Public Company Bankruptcies Surpassed, According to BankruptcyData.com." 17 September 2008. AllBusiness.Com. 11 April 2010  http://www.allbusiness.com/company-activities-management/financial-performance/11564300-1.html 

Andrews, E., et.al. "Fed's $85 Billion Loan Rescues Insurer." The New York Times 16 September 2008:  http://www.nytimes.com/2008/09/17/business/17insure.html?_r=1&hp .

Bardeesy, Karim. "Bailout Baloney." 2 October 2008. The Big Money from Slate. 11 April 2010  http://www.thebigmoney.com/articles/juicy-bits/2008/10/02/bailout-baloney 

Bucznski, Richard. "Economic Crisis: When Will It End?" 2010. IBIS World. 9 April 2010  http://www.ibisworld.com/recession2009/

Many subprime mortgages were made with little documentation of income or ability to repay, or other elements that typically safeguard loans of all types and mortgages especially. There have even been cases of widespread fraud, where documents were falsified in order to approve loans. The reason many lenders were so eager to make these bad loans is that they weren't ultimately going to be responsible for them -- the loans were bundled into groups and sold as "mortgage backed securities," so instead of dealing with many individual loans worth an average of a few hundred thousand dollars, banks and other institutions were dealing with bundled groups of these bad loans worth millions of dollars apiece. Companies like AIG made money in the short-term by providing insurance policies for these mortgage backed securities, as well. Eventually, however, people with loans they couldn't really afford began to default, either because they simply…...

They could not foresee the housing market falling as it did, and the number of foreclosures it would create, and so, they aggressively continued to pursue the market when they should have been cutting back. The top executives left the company, but they were not fired, in fact, Killinger retired, comfortably it would seem. The customers of the bank, especially those with mortgages, are the ones who really will suffer in the long-term. The bank will rebound, but those with foreclosed homes never got the chance for a bailout, and so, they lost everything, while the executives and leaders of the bank are not charged with any wrongdoing. Luckily, the American taxpayers did not suffer, either, because JP Morgan Chase financed the takeover and the continuing operations of the bank.
In conclusion, WaMu's failure came about due to a number of reasons. They invested far too heavily in the sub-prime…...

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References

Adler, Joe, and Hopkins, Cheyenne. "FDIC's 'Big One': Long Prelude Gave Way to a Sudden End." American Banker, 29 Sept. 2008, Vol. 173, Issue 188.

Cocheo, Steve. "Kerry Killinger Builds His Dream Bank." ABA Banking Journal 93.8 (2001): 22.

Editors. "Washington Mutual, Inc." New York Times. 27 Sept. 2008. Business, 1.

Ivy, Bob and Shen, Linda. "Washington Mutual Hobbled by Increasing Defaults on Option ARMs." Bloomberg.com. 15 Sept. 2008. 11 Dec. 2008.  http://www.bloomberg.com/apps/news?pid=20601087&sid=aNSwdt57nTBI&refer=home

Another significant factor that affected the financial crisis of 2008 was role that Wall Street played in worsening the impact of the financial disaster that was to come. Specifically, a number of prominent Wall Street companies effectively "bought in" to the housing shortage by investing in securities that are financially supported by loans of a dubious nature. A recent report compiled by the Financial Crisis Inquiry Commission alludes to the fact that such investors were well aware of the substantial risk that these investments represented, yet pursued them anyway due to avaricious tendencies (Chan, 2011).

The involvement of banks in the financial crisis goes well beyond issuing loans that were of a suspect nature to people who required subprime loans. To that extent, this degree of culpability on the part of banks can actually be traced to the Securities and Exchange Commission, another federal government entity, that was decidedly lax about…...

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Bibliography

Chan, S. (2011). "Financial Crisis Was Avoidable, Inquiry Finds." The New York Times.  http://www.nytimes.com/2011/01/26/business/economy/26inquiry.html 

Davis, J.F. (2008). "The Cause of the 2008 Financial Crisis." Aim.org.  http://www.aim.org/guest-column/the-cause-of-the-2008-financial-crisis/ 

Shah, a. (2010). "Global Financial Crisis." Globalissues.org.  http://www.globalissues.org/article/768/global-financial-crisis

The U.S. is a property owning civilization and a number of the people wanted land and housing. Americans however scarcely ever create savings. "The country itself lives on other countries' savings by issuing bonds to finance its excessive consumption. The current crisis began with cheap housing loans offered by banks. Banks provided loans but instead of holding the loan in their books, they packaged them into collateralized debt obligations (CDOs) and sold them to other agencies. These agencies passed them on to others and spread them globally as assets" (the Current Economic Crisis, its causes, its impact and possible alternatives, 2009).

Interest rates were lowered and housing loans went up with construction activities leading to land prices increasing. The real estate was booming, generating employment and incomes. But as the rate of interest on housing loans came down, banks started to compete to get more business. Because of low interest rates,…...

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References

Avizius, R. 2009. Financial Crisis Big Picture: What has the Government Response Been? [ONLINE] Available at:   [Accessed 22 May 2012].http://www.marketoracle.co.uk/Article9229.html .

Centeno, M.A. & Cohen, J.N. 2012. The Arc of Neoliberalism. [ONLINE] Available at:   [Accessed 22 May 2012].http://www.yale.edu/macmillan/transitionstomodernity/papers/CentenoCohen.pdf .

Crotty, J. 2009. Structural causes of the global financial crisis: a critical assessment of the 'new financial architecture' . [ONLINE] Available at:   [Accessed 22 May 2012].http://cje.oxfordjournals.org/content/33/4/563.full .

Esteva, G. (n.d.). The Meaning of the Global Crisis and "Recovery" for Study Abroad: What are we Preparing Students for? [ONLINE] Available at:   [Accessed 22 May 2012].http://digitalcollections.sit.edu/cgi/viewcontent.cgi?article=1110&context=faculty_symposium .

shadow banking system, its role in the subprime mortgage crisis, and failures of regulation within the shadow banking system. The term "shadow banking system" was coined by PIMCO's Paul McCulley in 2007 (Spanos, 2012) and refers to a banking system that includes financial intermediaries that are involved in creating credit across the global financial system, whose functions are not subject to regulatory oversight (Investopedia, 2012). The question has been debated as to whether shadow banking meets the definition of true banking. Given that the two systems perform similar functions, including credit intermediation and maturity transformation, the two should be considered parallel systems (Noeth and Sengupta, 2011).
The term shadow banking is used to describe any provision of credit taking place outside of the traditional deposit-funded lending system. This definition includes institutions that range from pawnbrokers and consumer finance companies to securities dealers as well as firms that issue corporate bonds.…...

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Reference List

Armstrong, R., 2010. Q+A -- Regulating the shadow banking system. Fox Business. [online] Available at: [Accessed 20 April 2012].

Beckworth, D., 2010. "Deposit insurance" for the shadow banking system. [online] Available at: [Accessed 20 April 2012].

Drum, K., 2012. The shadow banking system speaks: It's not time for austerity yet. MotherJones. [online] Available at: [Accessed 20 April 2012].

Hsu, J. And Moroz, M., 2009. Shadow banks and the financial crisis of 2007-2008. Research Affiliates LLC. [online] Available at: [Accessed 20 April 2012].

The Profound Impact of the 2008 Financial Crisis on Global Economies and Banking Systems

The 2008 financial crisis, widely acknowledged as the most severe financial upheaval since the Great Depression, left an indelible mark on global economies and banking systems. The crisis's origins can be traced to various factors, including the subprime mortgage debacle, excessive risk-taking by financial institutions, and inadequate regulatory oversight. Its effects, however, reverberated far beyond the financial sector, affecting businesses, households, and governments worldwide.

Impact on Global Economies

The crisis triggered a deep and prolonged recession across the globe. Economic growth plummeted, unemployment soared to alarming levels, and international....

The Olympus Accounting Fraud Scandal: A Damaging Blow to Reputation and Financial Stability

The Olympus Corporation, a renowned Japanese manufacturer of optical equipment, was rocked by a massive accounting fraud scandal that spanned several years and had a profound impact on the company's reputation and financial stability. The intricate scheme involved the creation of fictitious subsidiaries and the use of complex financial instruments to conceal billions of dollars in losses.

Unraveling the Fraud

In 2011, a whistleblower brought the fraudulent activities to light, prompting an internal investigation. The subsequent probe uncovered a web of deceit that had been orchestrated by senior executives and....