Five-year anniversary of the collapse of the world financial markets

It has been five years in September 2013 since the collapse of the Wall Street investment banking behemoth Lehman Brothers on September 15, 2008, the collapse of the stock market and the subsequent collapse of the housing market in 2008. The crisis continued until 2009 affecting economies worldwide. The S&P 500 reached its intraday low of 666 on March 6, 2009.

A lot has happened since the collapse and the economic recovery still continuing. In the U.S. Volcker Rule, a specific section of the Dodd-Frank Wall Street Reform and Consumer Protection Act, named after the former Federal Reserve Chairman Paul Volcker, introduced restrictions on banks trading on stocks that do not benefit the bank’s clients. Many refer to the rule as a ban on proprietary trading by commercial banks. Attempts to fully implement the Rule are still on-going.

Passage of Dodd-Frank legislation affect the oversight and supervision of financial institutions, provides for new procedures for large financial institutions, creates a new consumer financial agency to protect consumers, introduced higher capital requirements for financial institutions, and host of other financial regulations. A total of 153 of the 398 required rules under the act have been finalized.

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elegant on September 16th 2013 in Finance

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