TEST1-1 - Alex Ben MOshe April 7 2008 Quiz 1 Fin 370 Dr Collins Problem 1 A Regulatory dialectic is the change occurring through a process of

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Alex Ben MOshe Fin 370 April 7, 2008 Dr. Collins Quiz 1 Problem 1. A. Regulatory dialectic is the change occurring through a process of action and reaction by opposing forces. This change is composed of the Thesis, Antithesis and Synthesis. Thesis – is an initial set of arguments. Regulators and legislators create rules Antithesis – is a conflicting set of arguments or responses. Companies seek loopholes to earn profits. New Thesis – Regulators and legislators modify rules. Antithesis - Companies seek to earn profits around the rules Synthesis – is a change or modification. It occurs and obsolete rules are eliminated. The antithetical force that emerged in the 1980s and early 1990s were from the objectives of managers and owners of regulated institutions, and market changes. . The antithetical force did lead to a synthesis. Three forces indicated a deregulation need; nonbank competition, declining Fed membership and technological innovations. Securities firms and diversified firms such as Sears and Merrill Lynch were able to offer
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This note was uploaded on 04/20/2008 for the course FIN 330 taught by Professor Wong during the Spring '08 term at Western Connecticut State University.

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TEST1-1 - Alex Ben MOshe April 7 2008 Quiz 1 Fin 370 Dr Collins Problem 1 A Regulatory dialectic is the change occurring through a process of

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