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U.S Financial Regulatory System

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A quick roundup on how the financial markets and system run in the U.S. Short, crisp and clear presentation.

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									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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