The 2008 financial crisis left many people with no homes, jobs, or way of life. It affected the economy more significantly than any crisis since the Great Depression. Dodd-Frank was created in response to this catastrophe to assure that it would never happen again. The law imposes regulation in nearly every aspect of the financial industry, covering investment and commercial banks, insurance companies, rating agencies, hedge funds, and many others. With the implementation of Dodd-Frank, we must consider the costs and benefits of such a bill. If there is too much regulation on banks, for example, they will be less likely to lend, decreasing liquidity in our economy and leading to a lack of economic growth or even a recession. Continue reading
This is a story about greed and corruption, about blind ambition and selfishness. The merger between Bank of America and Merrill Lynch during the financial crisis is historically significant, and represents the unethical behavior of many executives on Wall Street. John Thain, former CEO of Merrill Lynch, and Ken Lewis, former CEO of Bank of America, were so focused on their own pursuit of greater compensation and power that they ignored the warning signs and understated the severity of the financial situation.