Question

What happened to those institutions that were investment banks in 2007? What is their regulatory treatment,...

What happened to those institutions that were investment banks in 2007? What is their regulatory treatment, currently?

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Answer #1

There were notable financial institutions worldwide that were severely affected by the great recession centere in 2007-09. The list includes banks ( both saving and loan associations, commercial banks and investment banks) , building societies and insurance companies that were :

Taken over or merged with other financial institutions.

Nationalised by govt or by central bank.

Declared insolvent of liquidated.

Regulatary treatment

1 .Better regulation- banks have benn asked to hold more liquid assets and capital. They also have been asked to more thoughtful in their risk management and stress testing.

2. Global restructuring- the banking industry have went through worldwide globalisation.

3 . rebalanced business - now do much more wealth management that is advising individual on their investment.

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