VIEWS: 33 PAGES: 14 CATEGORY: Corporate Finance POSTED ON: 11/21/2012
A quick roundup on how the financial markets and system run in the U.S. Short, crisp and clear presentation.
Aug 2012 WHAT IS MY PRESENTATION ALL ABOUT ? Regulatory Bodies Federal Reserve System Department of the Treasury Securities and Exchange Commission Federal Deposit Insurance Corporation Commodities Futures Trading Commission National Credit Union Administration FEDERAL RESERVE SYSTEM The Federal Reserve, commonly referred to as the Fed, is the central bank of the United States. Responsible for regulating the U.S monetary system (i.e…, how much money is printed and how it is distributed). Also responsible for monitoring the operations of holding companies, including traditional banks and banking groups. Its mandate is to promote stable prices and economic growth. BOARD OF GOVERNORS: National component of federal reserve system is run by a 7 person Board of Governors, commonly called – Federal Reserve Board. Managed by chairman and vice chairman to guide monetary policy by coordinating with the Federal Open Markets Committee(FOMC) and regional banks. Also charged with overseeing U.S government’s system of payments, Supervising the financial services industry, coordinating and overseeing the actions of regional reserve banks. Federal Open Markets Committee: Is the Fed’s primary monetary policymaking body. It consists of 12 members Including 7 members of the Board of Governors, The president of the Federal Reserve Bank of NY, The presidents of 4 other regional banks (who serve on rotational basis). FOMC assesses the economic and financial landscape and sets the federal fund rate, the benchmark interest rate at which the Fed loans money to banks. Federal reserve banking system encompasses 12 regional banks with 25 total branches. Regional arms of U.S Central Bank that are intermediaries between local banks and U.S reserve banking system. Store and distribute 1. Reserves 2. Process checks 3. Other forms of interbank payments 4. And supervise the operations of commercial banks in their region. Originally created specifically to manage government revenues. Encompasses several duties Recommends and influences fiscal policy, Regulates U.S imports and exports, Collects all U.S revenues including taxes, And designs and mints all U.S currency. functions primarily through the operations of 2 agencies it oversees, 1) Office of Comptroller of the Currency, 2) Office of Thrift Supervision. 1) Office of the Comptroller of the Currency – The OCC is responsible for chartering all U.S banks and. more broadly, for ensuring the stability of the banking system. 1) Office of Thrift Supervision – Tasked with supervising federally chartered savings and loan associations also known as “ thrifts “. SECURITIES AND EXCHANGE COMMISSION: SEC is an independent government agency overseeing U.S securities markets, Enforcing securities law. Monitoring exchanges for stocks, options and other securities. One of the primary tasks is to promote transparency in securities markets and protection of investors from fraud or corporate malfeasance. Is tasked to bring civil charges against firms thought to have committed fraud or other accounting wrongdoings. The commission has sub-divisions focused on regulating Corporate finance, Trading and markets, Investment management and Enforcement. FEDERAL DEPOSIT INSURANCE CORPORATION: Thisfollows a wave of bank closures. The Federal Deposit Insurance Corporation or FDIC providing the broader U.S population a guarantee that individual savings wouldn’t evaporate when a bank did. COMMODITIES FUTURES TRADING COMMISSION: CFTC was founded as an independent agency to provide a regulatory framework for the increasingly complex market in futures contracts. (Through which traders agree to buy or sell goods at a specific time in the future for a specific price.) NATIONAL CREDIT UNION ADMINISTRATION: NCUA is responsible for chartering and supervising U.S credit unions. It also insures savings in all federal and most state-chartered unions through a fund called the National Credit Union Share Insurance Fund.
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