Banking and Monetary Policy_Butkiewicz_Date__040810

Banking and Monetary Policy_Butkiewicz_Date__040810 - who...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 10 3: business failure= normal part of the economy 5: when go to bank expect that they have cash to give you - Bank runs= people lose confidence in a bank o Fire sale price selling asset at a price low to its real price 8: suspension of payment—can use checking account but cant get any cash out - Last major run, knickerbockers bank and trust company- 19 to early 20 th century - Fed Nov. 16 1914 (begin official operations) 11: bank runs often become bank panics 12: Bank of US was NOT associated with the government—just a private bank 13: October 1931- 520 banks failed in one month 16: normal FDIC up to $100,000 17: fovernment assists= tax payers will have to pay 18: raised temporary coverage to $250,000—planned to end 2013 19: “breaking the buck” cause a lot of concern in economy 21: if lose money shareholders lose 23: try to give people incentive to monitor bank behavior 24: good institutions/ good government then deposit insurance is a good thing 25:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

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 wallseparations where fed might be problems 31: every state has state agencies to regulate state charter banks 32: 90sone overseer; Fed doesnt like it unless its them 35: 1930 Bank for international settlementsevolved to where many meet- create level playing fields- agreement on cap 36: dont have to hold any capital for treasury bank securities 40: Basel 2 not yet adopted in U.S. 43: CAMELS1 is good, 5 is bank is in trouble 45: learn a lot more when things go wrong/ unhealthy economy 47: as long as customers dont know bank is broke it will continue to operate and hope debts pay off 49: didnt shut down enough institutionshad to create a group to do it 50: want to shut it down before it is broke 52: systematic regulator (who should it be?)...
View Full Document

Page1 / 2

Banking and Monetary Policy_Butkiewicz_Date__040810 - who...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online