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Unformatted text preview: who can open a bank?-“honest” people 26: look at character of people who want to open bank then asses if allow them to do so 27: fire wall—separations where fed might be problems 31: every state has state agencies to regulate state charter banks 32: 90s—one overseer; Fed doesn’t like it unless its them 35: 1930 Bank for international settlements—evolved to where many meet- create level playing fields- agreement on cap 36: don’t have to hold any capital for treasury bank securities 40: Basel 2 not yet adopted in U.S. 43: CAMELS—1 is good, 5 is bank is in trouble 45: learn a lot more when things go wrong/ unhealthy economy 47: as long as customers don’t know bank is broke it will continue to operate and hope debts pay off 49: didn’t shut down enough institutions—had to create a group to do it 50: want to shut it down before it is broke 52: systematic regulator (who should it be?)...
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- Spring '08
- Monetary Policy, Fractional-reserve banking, early 20th century, Bank run, assists= tax payers, sale price selling