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Review of the Literature

Significance of the Study

This is the basic purpose of any study that what significance would it bring? As far as this topic, The Need and Importance of Strong Regulations over Financial Institutions after the Recent Crises is concerned; it is the study of one of the major causes of the recent worst crises. The findings of the research would give the comparison of the both eras, good and bad. Resultantly this would promote the idea of need, importance and implementations of strong regulations on the basis of facts and figures. This study will be helpful for futures students of finance, government policy makers, banks, FSA and many other related institutions.

It is always a good idea to have better understandings of the related topics and terms before looking into the main idea or topic. Dissertation will first of all explain the following questions

 What is the meaning of regulation with respect to financial institutions?

 What are the governing bodies and which authorities control and implement those regulations?

 The detail history of regulations will be given before the current crises.

The history will give the idea that strong and sound regulations and their implementations were one of the major elements which prevented crises. This history will not only help for the better understanding of the topic but also support to the idea that there is an intense need of strong regulations over financial institution after this recent crises.

From proposal

What is the meaning of regulation with respect to financial institutions?

Financial regulations are a form of controlling or supervision, which subjects financial institutions to confident requirements, objective to maintain the wholeness of the financial system and restriction and guidelines.

It maybe controlled by government or non government organization.

If we talk about some aims or objectives of financial regulators then we can say some core objectives of financial regulations are following.

Objectives of Financial Regulations

Some specific objectives of financial regulators are following:

1. Improvement of Confidence in the financial system

2. Financial regulators play a role in providing a licence of financial services

3. As a legal prosecutor in different cases such as market conduct (corporation stocks and other market securities).

4. And play a role in the implementation of laws

Authority by Country

The following is a brief listing of the regulatory authorities in different countries.

* Albanien Albania - Albanisch Financial Supervisory Authority (FSA) - Albanian Financial Supervisory Authority (FSA)

* Andorra Andorra - Institut Andorrà Nacional de Finances (INAF) - Institute Andorrà Nacional de Finances (INAF)

* Argentinien Argentina - Comisión Nacional de Valores (CNV) - Comisión Nacional de Valores (CNV)

* Australien Australia - -- Australian Prudential Regulation Authority Australian Prudential Regulation Authority (APRA) (APRA)

* Australien Australia - -- Australian Securities and Investments Commission Australian Securities and Investments Commission (ASIC) (ASIC)

* Österreich Austria - Finanzmarktaufsicht (FMA Finanzmarktaufsicht in Deutsch) - Financial Market Authority (FMA Financial Market Authority) in German

* Belgien Belgium - Banking, Finance and Insurance Commission ( "Commissie voor het Bank-, Financie-en Assurantiewezen" in - Banking, Finance and Insurance Commission ( "Commissie voor het Bank-,-en Financie Assurantiewezen in Niederländisch Dutch und "Commission Bancaire, Financière et des Assurances" in Französisch) (CBFA) and "Commission Bancaire, Financière et des Assurances" in French) (CBFA)

* Bosnien und Herzegowina Bosnia and Herzegovina - -- Republika Srpska Securities Commission Republika Srpska Securities Commission für die for Republika Srpska Republika Srpska

* Britische Jungferninseln British Virgin Islands - -- Britische Jungferninseln Financial Services Commission British Virgin Islands Financial Services Commission

* Bulgarien Bulgaria - -- Financial Supervision Commission Financial Supervision Commission (FSC) (FSC) [1] [1]

* Kanada Canada - Investment Dealers Association of Canada (IDA) - Investment Dealers Association of Canada (IDA)

* Chile Chile - Superintendencia de Valores y Seguros - Superintendencia de Valores y Seguros

* Kroatien Croatia - Kroatische Agentur für die Aufsicht der Financial Services - Croatian Agency for Supervision of Financial Services [2] [2]

* Zypern Cyprus - -- Central Bank of Cyprus Central Bank of Cyprus [3] [3]

* Tschechische Republik Czech Republic - -- Tschechische Nationalbank Czech National Bank [4] [4]

* Republic of China Republic of China - -- Financial Supervisory Commission Financial Supervisory Commission

* Dänemark Denmark - Financial Supervisory Authority (Finanstilsynet in Dänisch) - Financial Supervisory Authority (Finanstilsynet in Danish)

* Estland Estonia - Finantsinspektsioon - Finantsinspektsioon

* Färöer-Inseln Faroe Islands - Insurance Authority der Färöer (Tryggingareftirlitið in Färöisch, für Versicherungen und Pensionsfonds und eine Hypothek Kreditinstitut) - Insurance Authority of the Faroe Islands (Tryggingareftirlitið in Faroese, for insurance companies and pension funds and a mortgage bank)

* Finnland Finland - Financial Supervisory Authority (RATA Rahoitustarkastus in Finnisch) - Financial Supervisory Authority (RATA Rahoitustarkastus in Finnish)

* Frankreich France - -- Autorité des marchés financiers Autorité des marchés financiers (AMF) (AMF)

* Deutschland Germany - -- Bundesanstalt für Finanzdienstleistungsaufsicht Federal Financial (BaFin - Bundesanstalt für Finanzdienstleistungsaufsicht) (BaFin - Bundesanstalt) for Financial Services

* Großherzogtum Luxemburg Grand Duchy of Luxembourg - Commission de Surveillance du Secteur Financier (CSSF) - Commission de Surveillance du Secteur Financier (CSSF)

* Griechenland Greece - Capital Market Kommission - Capital Market Commission [5] [5]

* Guatemala Guatemala - Superintendencia de Bancos (SB) - Superintendencia de Bancos (SB)

* Hong Kong Hong Kong - Securities and Futures Commission (SFC) - Securities and Futures Commission (SFC)

* Ungarn Hungary - Hungarian Financial Supervisory Authority - Hungarian Financial Supervisory Authority [6] [6]

* Island Iceland - Financial Supervisory Authority - Island - Financial Supervisory Authority - Iceland [7] [7]

* Indien India - -- Reserve Bank of India Reserve Bank of India

* Indien India - -- Securities and Exchange Board of India Securities and Exchange Board of India (SEBI) (SEBI)

* Irland Ireland - -- Central Bank and Financial Services Authority of Ireland Central Bank and Financial Services Authority of Ireland [8] [8]

* Irak Iraq - -- Iraq Securities Commission Iraq Securities Commission (ISC) (ISC)

* Isle of Man Isle of Man - -- Financial Supervision Commission Financial Supervision Commission (FSC, für Bank-, Investitions-und Treuhand-Unternehmen) (FSC, for banking, investment and trust companies)

* Isle of Man Isle of Man - Insurance and Pensions Authority (IPA für Versicherung und Vorsorge Unternehmen) - Insurance and Pensions Authority (IPA for benefits and insurance companies)

* Israel Israel - -- Israel Securities Authority Israel Securities Authority (ISA) (ISA)

* Italien Italy - Commissione Nazionale per le Societa e la Borsa - Commissione Nazionale per le Societa e la Borsa [9] [9]

* Japan Japan - -- Financial Services Agency Financial Services Agency

* Japan Japan - Securities and Exchange Surveillance Commission (SESC) - Securities and Exchange Surveillance Commission (SESC)

* Kasachstan Kazakhstan - Агентство Республики Казахстан по регулированию и надзору финансового рынка и финансовых организаций - Agentur der Republik Kasachstan über Regulierung und Aufsicht über Finanzmärkte und Finanzdienstleistungen Organisationen - Агентство Республики Казахстан по регулированию и надзору финансового рынка и финансовых организаций - Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations

* Lettland Latvia - Finanz-und Kapitalmarkt-Kommission - Financial and Capital Market Commission [10] [10]

* Litauen Lithuania - Securities Commission der Republik Litauen - Securities Commission of the Republic of Lithuania [11] [11]

* Luxemburg Luxembourg - Commission de Surveillance du Secteur Financier - Commission de Surveillance du Secteur Financier [12] [12]

* Malta Malta - Malta Financial Services Authority (MFSA) - Malta Financial Services Authority (MFSA)

* Mexiko Mexico - Comisión Nacional de Valores y Bancaria - Comisión Nacional Bancaria y de Valores

* Niederlande Netherlands niederländische Aufsichtsbehörde für die Finanzmärkte Netherlands Authority for the Financial Markets [13] [13]

* Neuseeland New Zealand - Securities Commission of New Zealand - Securities Commission of New Zealand [14] [14]

* Norwegen Norway - -- Kredittilsynet Kredittilsynet [15] [15]

* Pakistan Pakistan - -- Securities and Exchange Commission of Pakistan Securities and Exchange Commission of Pakistan (SECP) (SECP)

* People's Republic of China People's Republic of China - -- China Securities Regulatory Commission China Securities Regulatory Commission (CSRC) (CSRC)

* Philippinen Philippines - -- Philippines Securities and Exchange Commission Philippines Securities and Exchange Commission (SEC) (SEC)

* Polen Poland - Polnisch Financial Supervision Authority (KNF) - Polish Financial Supervision Authority (KNF) [16] [16]

* Portugal Portugal - -- Securities Market Kommission Securities Market Commission (CMVM) (CMVM)

* Irland Ireland - -- Irish Financial Services Regulatory Authority Irish Financial Services Regulatory Authority

* Republik Mazedonien Republic of Macedonia - Securities and Exchange Commission der Republik Mazedonien (ms) - Securities and Exchange Commission of the Republic of Macedonia (ms)

* Republik Mazedonien Republic of Macedonia - -- Nationalbank der Republik Mazedonien National Bank of the Republic of Macedonia [17] [17]

* Russland Russia - -- Die Bundesanstalt für Finanzdienstleistungsaufsicht Markets Service The Federal Financial Markets Service (FFMS) (FFMS)

* San Marino San Marino - -- Central Bank of San Marino Central Bank of San Marino (BCSM) (BCSM)

* Südafrika South Africa - National Credit Regulator - National Credit Regulator

* Spanien Spain - Spanish Securities Market Commission (CNMV) - Spanish Securities Market Commission (CNMV)

* Schweden Sweden - -- Financial Supervisory Authority Financial Supervisory Authority

* Türkei Turkey - Capital Markets Board of Turkey (CMB) - Capital Markets Board of Turkey (CMB)

* Vereinigte Arabische Emirate United Arab Emirates (Dubai) - (DFSA (Dubai) - (DFSA Dubai Financial Services Authority) Dubai Financial Services Authority)

* Großbritannien United Kingdom - -- Financial Services Authority Financial Services Authority (FSA) (FSA)

* Vereinigte Staaten United States - -- United States Securities and Exchange Commission United States Securities and Exchange Commission (SEC) (SEC)

* Vereinigte Staaten United States - United States - United States Federal Reserve System Federal Reserve System ( "Fed") ( "Fed")

* Vereinigte Staaten United States - -- Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC) (FDIC)

* Vereinigte Staaten United States - -- Amt des Comptroller of the Currency Office of the Comptroller of the Currency (OCC) (OCC)

* USA U.S. - -- National Credit Union Administration National Credit Union Administration (NCUA) (NCUA)

* Vereinigte Staaten United States - -- Office of Thrift Supervision Office of Thrift Supervision (OTS) (OTS)

Principles of Financial Services Verordnung Principles of Financial Services Regulation

Finanzordnung Versuch, sicherzustellen, dass die Finanzinstitute den spezifischen Anforderungen, Beschränkungen halten und Richtlinien, die das Ziel der Integrität des Finanzsystems zu wahren, und die Gesetze erlassen werden können, oder es gibt sie als freiwillige oder obligatorische Verhaltenskodex. Financial attempt to ensure that financial institutions with the specific requirements, restrictions and guidelines to keep that to preserve the integrity of the financial target, and the laws may be adopted, or exist as a voluntary or mandatory code of conduct.

In erster Linie sollte die finanzielle Regelung versuchen, diese drei strategischen Grundsätzen folgen: First and foremost, the financial system should try to follow these three strategic principles:

Förderung einer effizienten, fairen und ordnungsgemäßen Märkten. Promote an efficient, fair and orderly markets.
Hilfe Retail-Kunden erhalten eine faire Behandlung. Help retail customers receive fair treatment.
Erhöhen Business-Funktionen und der Wirksamkeit der finanziellen Aufseher. Improve business capability and effectiveness of financial overseers.

Ein finanzieller Aufseher oder Aufsichtsbehörde in der Regel reguliert die meisten Märkte für Finanzdienstleistungen, Börsen und Unternehmen in ihrem Land, das Setzen von Standards, dass die Finanzinstitute erfüllen müssen. A financial overseer or supervisor normally regulates most financial services markets, exchanges and firms in their country, setting standards that financial institutions must meet. Dieses Gremium kann gegen Unternehmen, die diese Standards nicht erfüllen. This body may impose on undertakings that do not meet these standards. Zum Beispiel, im Vereinigten Königreich hat sich die Financial Services Authority (FSA) das einzige Aufsichtsbehörde Financial Services seit 2001. For example, in the United Kingdom, the Financial Services Authority (FSA) is the only regulator Financial Services since 2001. Seine Befugnisse waren (und sind) nicht allumfassend, haben aber seit der Gründung gewachsen. Its powers were (and are) all-encompassing, but have grown since its inception. Zum Beispiel wurde Hypotheken-Geschäft seit November 2004 geregelt, und die allgemeinen Versicherungs-Aktivitäten seit Januar 2005. For example, was regulated mortgage business since November 2004, and the general insurance activities since January 2005.

Eine Regulierungsbehörde hat in der Regel weit reichende Befugnisse zu machen und Durchsetzung der Regeln und zur Durchführung von Untersuchungen, um die Grundsätze der Regulierung der Finanzdienstleistungen zu erreichen. A regulatory body has typically make far-reaching powers and to enforce the rules and to conduct investigations in order to achieve the principles of regulation of financial services. Der Regler wird versuchen, Bewertung und Überwachung der Risiken einer Tätigkeit oder eine feste und prüfen, ob sie den möglichen Schaden in einem der folgenden Bereiche führen zu: The controller will attempt to assess and monitor the risks of an activity or a firm and consider whether the potential harm they cause in the following areas:

* Vertrauen in den Markt; Confidence in the market;

* Sensibilisierung der Öffentlichkeit; Public awareness;

* Verbraucher; Consumers;

* Wirtschaftskriminalität. Economic crime.

Der Regler ist mit der Aufrechterhaltung des Vertrauens in das Finanzsystem zu zahlen; die Aufrechterhaltung und Steigerung des Verständnisses der Öffentlichkeit für das Finanzsystem, der Schutz der Verbraucher, die Verhinderung und / oder die Verringerung der Wirtschaftskriminalität und negiert die Art und Weise, in der ein Unternehmen finanziell für kriminelle Aktivitäten genutzt werden könnte. Ein Regler hat die Aufgabe, breit, und die Erreichung von hundert Prozent Übereinstimmung ist nahezu unmöglich, so muss sie ihre Aktivitäten zu priorisieren. The regulator is charged with the maintenance of confidence in the financial system, the maintenance and enhancement of public understanding of the financial system, consumer protection, prevention and / or reducing crime and the economy negates the way in which a companies could be financially exploited for criminal activities. A controller is responsible, broad, and the achievement of one hundred percent compliance is virtually impossible, it must be to prioritize their activities. Aufbauend auf den drei Prinzipien, eine finanzielle Regulierungsbehörde muss ihre oft begrenzten Ressourcen auf die effizienteste und wirtschaftlich zu nutzen. Based on the three principles, a financial regulator needs to their often limited resources in the most efficient and commercially exploited. Die Aufsichtsbehörde stellt in der Regel regelmäßige Berichte über die verschiedenen Aspekte des Finanzsystems eines Landes, diese können in den Empfehlungen für Veränderungen in der Rechts-und Verwaltungsvorschriften, wo Lücken oder Mängel hat sich gezeigt, existieren führen. The supervisor is usually periodic reports on the various aspects of the financial system of a country, they can in the recommendations for changes in laws and regulations, where gaps or defects has been shown to cause exists.

Haushaltsordnung innerhalb eines Landes ist natürlich kompliziert durch die Überlappung der internationalen Finanz-Gesetze und Märkte. Financial Regulation within a country is of course complicated by the overlap of laws and international financial markets. Daher muss jedes Land Finanzaufsichtsbehörde Zusammenarbeit mit anderen Ländern suchen und erreichen gemeinsame Vereinbarung mit den internationalen Standards. Therefore, each country must seek financial regulator cooperation with other countries and reach common agreement with the international standards. Die Regulierungsbehörden müssen all diese Ziele zu erreichen und gleichzeitig Aspekte eines gesunden Wettbewerbs, Minimierung der Kosten für die Unternehmen der Einhaltung und der Tatsache, Wettbewerb und Innovation, Finanzdienstleistungen für alle verbessern können. The regulators must be able to achieve all these goals while improving aspects of healthy competition, minimizing the cost of corporate compliance and the fact that competition and innovation, financial services for all.

Was sind die Leitungsgremien und die Behörden zur Kontrolle und Umsetzung dieser Vorschriften? What are the governing bodies and authorities to control and implement these rules?

IWF und Weltbank IMF and World Bank

Die Weltbank und der IWF sind zwei zwischenstaatlichen Säulen der Struktur des Wirtschafts-und Finanzpolitik, um die Welt. The World Bank and the IMF are two intergovernmental pillars of the structure of economic and financial policy to the world. Ähnlichkeiten zwischen ihnen zu wenig tun, um die Verwirrung zu lösen. Similarities between them do little to resolve the confusion. Oberflächlich der Bank und des IWF weisen viele gemeinsame Merkmale. On the surface of the Bank and the IMF have many common features. Beide sind in einer im Besitz Sinn und von den Regierungen der Mitgliedsstaaten gerichtet. Both are addressed in a sense, and owned by the governments of member states. The People's Republic of China, mit Abstand der bevölkerungsreichste Staat der Erde, ist ein Unternehmen, wie es die weltweit größte industrielle Macht (Vereinigte Staaten). In der Tat praktisch jedem Land der Erde ist ein Mitglied der beiden Institutionen. The People's Republic of China, by far the most populous state on earth, is a company like it), the world's largest industrial powers (the United States. In fact, virtually every country on earth is a member of both institutions. Beide Einrichtungen beschäftigen sich mit wirtschaftlichen Fragen und konzentrieren ihre Bemühungen auf die Ausweitung und Stärkung der Volkswirtschaften ihrer Mitgliedsländer. Both organizations are concerned with economic issues and concentrate their efforts on the expansion and strengthening of the economies of its member countries. Mitarbeiter sowohl der Bank und des IWF erscheinen oft auf internationalen Konferenzen. Employees of both the Bank and the IMF often appear at international conferences. Beide haben ihren Hauptsitz in Washington, DC Both have their headquarters in Washington, DC

Trotz dieser und anderer Ähnlichkeiten bleiben jedoch der Bank und des IWF deutlich. Despite these and other similarities, however, remain the Bank and the IMF clearly. Der grundlegende Unterschied ist: Die Bank ist in erster Linie eine Entwicklung, Einrichtung, des IWF ist eine gemeinsame Einrichtung, die ein geordnetes System der Zahlungen und Einnahmen zwischen den Nationen zu erhalten sucht. The fundamental difference is: The bank is primarily a development institution, the IMF is a cooperative institution, which seeks to obtain an orderly system of payments and receipts between nations.


The World Bank has one central purpose: to promote economic and social progress in developing countries by helping to raise productivity so that their people may live a better and fuller life.

The IMF has a different purpose. The IMF is convinced that a fundamental condition for international prosperity is an orderly monetary system that will encourage trade, create jobs, expand economic activity, and raise living standards throughout the world. By its constitution the IMF is required to oversee and maintain this system, no more and no less.

Der Internationale Währungsfonds und die Weltbank auf einen Blick The International Monetary Fund and the World Bank at a glance

Internationaler Währungsfonds International Monetary Fund

* beaufsichtigt das internationale Währungssystem overseeing the international monetary system

* fördert den Austausch von Stabilität und geordneten Austausch zwischen ihren Mitgliedsländern promotes exchange stability and orderly exchange between its member countries

* unterstützt alle Mitglieder - sowohl Industrie-und Entwicklungsländern -, die sich in vorübergehenden Zahlungsbilanz-Schwierigkeiten durch kurz-bis mittelfristige Kredite finden supports all members - both industrial and developing countries - which are found short in temporary balance of payments difficulties due to medium term loans

* ergänzt die Währungsreserven der Mitglieder durch die Zuteilung von SZR (Sonderziehungsrechte); Zeitpunkt auf 21,4 Mrd. SZR wurde den Mitgliedsländern im Verhältnis zu ihren Quoten ausgestellt ) completed the currency reserves of the members through the allocation of SDRs (Special Drawing Rights, SDR 21.4 billion at the time was the member countries issued in proportion to their quotas

* bezieht seine finanziellen Mittel hauptsächlich aus dem Kontingent der Zeichnung von ihren Mitgliedsländern obtains its funds mainly from the quota subscriptions of its member countries

* verfügt über die tatsächlich gezahlten der Quoten jetzt insgesamt 145 Mrd. SZR (ungefähr $ 215 Milliarden) has fully paid the rates now total 145 billion SDRs (about $ 215 billion)

* hat einen Stab von 2300 aus 182 Mitgliedsländern erstellt has a staff of 2,300 drawn from 182 member countries

World Bank World Bank

* soll die wirtschaftliche Entwicklung der ärmeren Länder der Welt zu fördern to promote the economic development of poorer countries in the world

* hilft den Entwicklungsländern durch langfristige Finanzierung von Projekten und Programmen assist developing countries through long-term financing of projects and programs

* stellt für die ärmsten Entwicklungsländer, deren Pro-Kopf-BIP von weniger als $ 865 im Jahr besondere finanzielle Unterstützung durch das International Development Association (IDA) provides for the poorest developing countries, whose per capita GDP of less than $ 865 in special financial assistance through the International Development Association (IDA)

* ermutigt die privaten Unternehmen in Entwicklungsländern durch sein Tochterunternehmen, die International Finance Corporation (IFC) encourages private enterprise in developing countries through its subsidiary, the International Finance Corporation (IFC)

* akquiriert den größten Teil ihrer finanziellen Mittel durch Anleihen auf den internationalen Rentenmärkten acquires most of its funds by borrowing on the international bond markets

* ein genehmigtes Kapital von $ 184 Mrd., von denen Mitgliedern in rund 10 Prozent zahlen an authorized capital of $ 184 billion, of which members pay about 10 percent

* hat einen Stab von 7000 von 180 Mitgliedsländern erstellt has a staff of 7,000 drawn from 180 member countries

(1) What is financial crisis?

The term financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value. In the 19th and early 20th centuries, many financial crises were related with banking crisis, and many recessions concur with these crisis. Other situations which are often called financial crises like stock market collapse and the detonating of other financial bubbles, currency crises, and supreme defaults.

(2) Is Britain is truly bankrupt?

Britain to recover from its present economic position it would have to return to the old formed custom of only spending and investing what the country has in savings.

The United Kingdom has long suffered from the Capitalist sickness of greed and consumption and living beyond ones means. This is in rotate contributed to the non-natural economic boom and subsequent ruined we now find ourselves in.

1. Banking crises (Bank run)

When a bank bears an adventitious rush of withdrawals by depositors that is called a bank run. Since banks lend out most of the cash which they receive in form of deposits from depositors is very difficult to pay to depositors on their suddenly demand. So it becomes a cause of bank in bankruptcy, causing many depositors to lose their savings unless they are covered by deposit insurance. A situation in which bank runs are widely distribution spread is called a systemic banking crisis or just a banking panic. A situation without widely distribution bank runs, but in which banks are unwilling to lend, because they upset that they have inadequate funds available, this is called a credit crunch. In this way, the banks become a reason of a financial crisis.

2. International financial crises

When any countries that declare a fixed exchange rate due to this devalue its currency because of a speculative attack, so it's called a currency crisis or balance of payments crisis. And sovereign default comes when a country fails to pay back its sovereign debt. While devaluation and default could both be not compulsory decisions of the government, they are often perceived to be the involuntary results of a change in investor mental feeling that leads to a sudden stop in capital inflows or a abruptly increase in capital flight.

3. Technological crises

Technological crises are due to human application of science and technology. Technical accidents inevitably occur when the technology becomes more complex and coupled and something goes wrong in the system as a technical breakdown. Einige technologische Krisen auftreten, wenn menschliche Fehler Some technological crises occur when human error Ursachen Causes Luxation Human Pannen. Bei einem Unfall erstellt indikative Dislocation Human margins. Created in an accident indicative Umgebung Schaden, ist die Krise Environmental damage, the crisis Einstufung als Mega-Schäden. Beispiele wie Software-Fehler, Arbeitsunfall, und Ölverschmutzung. Classified as a mega-damage. Examples of such software errors, industrial accidents and oil spills.

4. Crises of organizational misdeeds

Krisen Crises entstehen, wenn die Verwaltung untergebracht ist Maßnahmen, die sie kennt, wird die Beschädigung oder der Beteiligten auf Gefahr für arise when the administration is housed measures they know will damage or danger to the parties on Schäden ohne angemessene Erwartung. Without reasonable expectation of harm. Lerbinger angegebenen drei verschiedenen Arten von Krisen der organisatorischen Fehlverhalten: Lerbinger given three different types of crises of organizational misconduct:

Krisen-Management schief Werte, Crisis Management wrong values

Krisen der Täuschung Crises of Deception

Krisen-Management von Fehlverhalten. Crisis management of misconduct.

5. Crises of malevolence

Any organization wishing evils to others always faces a crisis when opposes person or villain individuals use criminal means or other highest degree of tactics for the purpose of expressing enmity or anger toward, or searching gain from, a company, country, or economic system, maybe with the aim of unstable or demolishing it. There are some Sample of crises include product tampering, kidnapping, malicious rumors, terrorist act, and espionage.

(3) What issues arise if a bank becomes insolvent?

From start of the financial crisis:

Many banks in the United Kingdom have been nationalized by the government because of solvency concerns. And there are many Measures have been taken by the Treasury and the Bank of England to encourage UK financial institutions at danger of insolvency. Actions have been taken by the Treasury to protect UK investors with deposits in UK branches of international insolvent banks.

When bank becomes insolvent there are many issues are arrived, including the following:

1. Depositors

Many insolvent banks can't return all deposits to depositors. But some banks are able to pay in insolvency. Deposits held with institutions authorized by the FSA are defending to a limited range by the Financial Services Compensation Scheme. So when any bank is not able to return all deposits then financial services compensation scheme may compensate the depositors.

2. Borrowers

The Financial Services Compensation Scheme have a rules that, if a depositors put money to a bank where he also has savings, the debts will be set-off in behind of the savings when calculating eligibility for compensation under the Financial Services Compensation Scheme. However, in January 2009, the Financial Services Compensation announced a consultation paper assertion changes to the Financial Services Compensation Scheme, including paying compensation to depositors.

3. Prime brokerage

The prime brokerage was holding client assets. If administrations have been unable to return these client assets because of the administration process work. In this response the government approaches this and to make changes to market or regulatory practice.

(4) What caused the financial crisis?

The crisis began in summer 2007 and was initially described in the media as a "credit crunch" or "credit crisis". Diese bezog sich auf die mangelnde Verfügbarkeit von Krediten in der industrialisierten Welt. This was related to the lack of availability of credit in the industrialized world. Am Anfang war der Mangel an Liquidität im Allgemeinen als das Hauptproblem betrachtet, sondern die Krise hat sich als langlebiger als veranschlagt. At the beginning of the lack of liquidity was generally regarded as the main problem, but the crisis is estimated to be as durable. Im September und Oktober 2008 eine Reihe von US-amerikanischen und europäischen Finanzinstitute zusammengebrochen, während andere verstaatlicht wurden oder mit Unterstützung der Regierung zusammen. Collapsed in September and October 2008, a number of U.S. and European financial institutions, while others have been nationalized or together with the support of the government.

Andere Faktoren, die Finanzkrise zu umfassen:Other factors that comprise the financial crisis:

* Ample liquidity and low interest rates. This lead to a "explore for yield" by investors in financial markets, which in turn group the development of complex financial instruments using influence to create higher returns for investors.

* Decline of lending standards. The widespread securitization of loans under an "originate to distribute" model intended originating lenders did not have to keep lending standards high as they could transfer the risk of the primary contracts. In the United States sub prime sector, unstable lending practices were also possible because of a weak regulatory system and high demand from investors.

* Remuneration. Bonus structures in financial institutions confident risk-taking; satisfying short-term gains even if these would be reduced or wiped out by losses in the longer term.

* Undervaluation of risk. There was also a big cause of financial crisis is undervaluation of risk. The Competition of highly leveraged structured financial instruments leads to credit risk. So the price reflected competition for the assets rather than a genuine assessment of fundamental credit quality. Additionally, economic conditions were benign for an extended period which led to expectations that they would remain so. In these optimistic conditions highly leveraged instruments remained eye-catching.

* Mark to market accounting. As financial institutions hurried to get better their capital position, they started to sell off assets. This forced selling caused asset prices to fall. Because of the mark to market( accounting rules, financial institutions had to readjust asset values in their accounts to reflect the newest market prices, which more destabilized their capital situation.

* Credit rating agencies. Many investors misunderstood the truth that ratings only measure credit quality and do not capture the risk of a decline in market value or liquidity of an instrument. When the ratings agencies started downgrading instruments in the summer of 2007, many investors lost faith in ratings and stopped buying complex instruments altogether.

* Fraud. Fraud was also a big reason in the collapse of some financial institutions, when companies have attracted depositors with deceiving claims about their investment systems. And many rogue traders have reason a big losses at financial institutions have been blame of acting fraudulently in order to hide their trades.

· Recessionary effects

Some financial crises have some actions from outside of the financial sector, like the Wall Street crash of 1987, the financial crisis could have a recessionary effect on the rest of the economy, and there are some theories like as following

These theoretical ideas include the

1. financial accelerator

2. 'flight to quality' and

3. 'Flight to liquidity',

4. And the Kiyotaki-Moore model.

5. Some 'third generation' models of currency crises.

(5) What impact has the financial crisis had on credit markets?

The financial crisis has resulted in:

* Decreased liquidity in the interbank market. Financial institutions have been lending to one another far less in the interbank market than normal. This is because they have been concerned in relation to the creditworthiness of other institutions or have wanted to continue cash reserves for themselves.

* Decreased wholesale funding to banks. The wholesale funding to banks decreased as investor-desire for commercial paper which are issued by banks fell and such investors moved their money to seeming safe havens, such as gold and independent debt.

* Decreased lending and bond issuance. Many Financial institutions of United Kingdom have cash in the form of storage to meet their existing task and have generally been less willing to extend credit to businesses and individuals.

In response, the UK government and the Bank of England( have taken various measures to try to strengthen the credit markets.

Financial Services Authority (FSA)

The single regulator for the UK financial services industry. The FSA is an independent non-governmental body which has been given statutory powers by the Financial Services and Markets Act 2000( (FSMA). The FSA is responsible for regulating the UK financial services sector and the promotion of the objectives set out in FSMA. That legislation requires the FSA to: maintain market confidence; promote public awareness; protect consumers; and reduce financial crime.

Hilfestellung für die Verbraucher durch die Rezession: Neuerstellung das Vertrauen der Verbraucher in der Finanzdienstleistungsbranche To assist consumers through the recession: Rebuilding the confidence of consumers in the financial services industry

In den letzten zwei Jahren Financial Services Authority haben die schlimmsten Finanzkrise in mindestens 70 Jahren vor, und zwischen Mitte September und Mitte Oktober letzten Jahres haben wir angesichts einer katastrophalen Zusammenbruch des Vertrauens in die Banking-Systeme der Welt. In the past two years, the Financial Services Authority have the worst financial crisis in at least 70 years before, and between mid-September and mid October last year, we face a catastrophic collapse in confidence in the banking systems in the world. Und das hat zwangsläufig dazu geführt, dass ein Großteil der Arbeit der FSA Top-Management hat den Umgang mit den Herausforderungen, die die Krise produziert gewidmet waren. And that has inevitably meant that much of the work the FSA's top management has to deal with the challenges that were dedicated to producing the crisis.

Es gibt zwei Schwerpunkte haben viel von unserem Leben dominiert. There are two priorities have dominated much of our lives.

* Erstens, die Entwicklung und Umsetzung der Krise Maßnahmen, die wir im letzten Herbst wieder verstärkt und früher in diesem Jahr, um die Solidität des Finanzsystems zu gewährleisten. Firstly, the development and implementation of emergency measures, which we again increased last fall and earlier this year to ensure the soundness of the financial system. Und die Antwort auf die individuellen Probleme, wie die isländischen Banken, Bradford & Bingley, Dunfermline Building Society , West Bromwich, und die allgemeine Programme der Rekapitalisierung zu garantieren, und Asset-Versicherung, die geschaffen wurden, um sicherzustellen, dass unsere größten Banken Ton wurden. And the answer to the individual problems, such as guaranteed by the Icelandic banks, Bradford & Bingley, Dunfermline Building Society, West Bromwich, and the general programs of the recapitalization and asset insurance, have been created to ensure that our largest banks sound were.

* Und zweitens, Arbeit, in der FSA (UK) beteiligt sind, intensiv mit internationalen Kollegen, bessere Regelungen und aufsichtsrechtlichen Ansätze für die zukünftige Gestaltung - eine bessere Beaufsichtigung auf Kapital und Liquidität, bessere Rechnungslegung nach vorne widerspiegeln der Suche nach Risikovorsorge, Reformen, um die Wirksamkeit von Rating-Agenturen zu verbessern, und Gehaltsstrukturen. And secondly, work, are involved in the FSA (UK), extensively with international colleagues, improved regulations and regulatory approaches for the future design - for better supervision on capital and liquidity, better accounting forward looking for loan losses, reflecting reforms in order to to improve the effectiveness of credit rating agencies, and salary structures. Und die Arbeit hat auch beteiligt zu durchdenken mit anderen das Verhältnis zwischen der makroökonomischen Politik und der finanziellen Stabilität, ob in der Zukunft FSA (UK) kann man besser auf Spotting entstehende Probleme, wie wie über-raschen Ausweitung der Kreditvergabe und house price boomt, und Ergreifung von Maßnahmen gegen den Wind von mehr als mager - die makroprudenziellen der Tagesordnung, wie er bekannt ist. And work has also participated with other think through the relationship between macroeconomic policy and financial stability, whether it may in the future, FSA (UK) are better at spotting emerging problems, such as booming as over-rapid credit growth and house price, and take measures against the wind of more than thin - the macro-prudential agenda as he is known.

Neben dieser Arbeit viele Menschen in der FSA müssen weiter konzentriert werden, nicht so sehr auf die Solidität der Unternehmen, die aufsichtliche Nachhaltigkeit von Banken und Versicherungen, sondern darauf, wie Unternehmen zu behandeln Verbraucher, und ob sie liefern den Wert der Verbraucher-Leistungs-Verhältnis. Unsere Arbeit hier wurde ging es sowohl um bestimmten aufkommenden Probleme und auf die gesamte Struktur der Märkte. Alongside this work, many people in the FSA must continue to be focused, not so much on the soundness of the company, the supervisory sustainability of banks and insurance companies, but on how companies treat consumers, and whether they deliver value to consumers for relationship. Our work here has focused both on specific emerging issues and to the entire structure of the markets.

Also unsere Arbeit im Namen der Verbraucher kann als mit drei Ausrichtungen gesehen werden: So our work on behalf of consumers can be seen as three strands:

* Wir schützen die Verbraucher, indem sichergestellt wird, so gut möglich, dass das Finanzsystem aufsichtsrechtlich solide ist, und dass die Verbraucher können ihre Banken und Versicherungen mit minimalem Risiko von Verlust Vertrauen. Und in der Tat in der Zukunft, ist eines der Ziele der Beaufsichtigung, wie die Minimierung der Risiko von Ansprüchen auf den Steuerzahler. We protect consumers by ensuring as much as possible that the financial system is prudentially sound and that consumers are their banks and insurance companies with minimal risk of loss of confidence. And in fact in the future, is one of the objectives of supervision how to minimize the risk of claims on the taxpayer.

* Wir versuchen sicherzustellen, dass die Unternehmen ihre Geschäftsprozesse Verhalten fair, mit Blick auf geeignete Anreize so zu tun, geeignete Produkte zu verkaufen, mit klaren Informationen für die Verbraucher. We try to ensure that the companies conduct their business fairly, with a view of appropriate incentives to do so, sell the appropriate products, with clear information for consumers.

* Und natürlich das Thema dieses Seminars wollen wir gewährleisten, dass - so gut wie möglich - die Verbraucher haben die Möglichkeit, vertrauensvoll mit Finanzdienstleistern zu befassen, um Produkte, die für sie geeignet sind, zu kaufen, und um ihre Finanzen effizient zu verwalten. And of course, want the theme of this seminar, we guarantee that - as much as possible - consumers have the ability to deal confidently with financial service providers in order to buy products that are suitable for them, and to manage their finances.

Aber selbst wenn die Rezession erweist sich etwas weniger streng als möglich erschien einige Monate zurück, so ist klar, dass es immer noch große wirtschaftliche Not führen wird für viele Menschen: Die Arbeitslosigkeit ist immer ein Spätindikator und wird auch weiterhin für eine lange Zeit nach unten im Anstieg wirtschaftliche Tätigkeit. But even if the recession proves to be somewhat less severe than seemed possible a few months back, it is clear that it will still have serious economic hardship for many people: unemployment is always a lagging indicator and will continue for a long time to bottom increase in economic activity. Die FSA hatte, dass 1,1 Millionen Haushalte werden in ein negatives Eigenkapital am Ende des Jahres 2009 geschätzt. The FSA had estimated that 1.1 million households in negative equity at the end of 2009. Viele Menschen werden schwere Probleme Service Hypothek oder persönliche unbesicherten Verbindlichkeiten Gesicht. Many people are serious problems service mortgage or unsecured personal debt face. Und viele andere fühlen sich unsicher und Unsicherheit hinsichtlich ihrer finanziellen Aussichten, auch wenn am Ende des Tages, sie zu verwalten, um Probleme zu vermeiden. And many others feel insecure and uncertain of their financial prospects, even if at the end of the day, they manage to avoid problems.

Mit, dass die Unsicherheit konfrontiert, die Verbraucher müssen in der Lage, ihre finanziellen Anbieter vertrauen, sie zu verkaufen gute Produkte und sie fair zu behandeln, und sie müssen darauf vertrauen können, dass sie die Fähigkeit, sich um gute Produkte zu identifizieren und sich für ihre Rechte haben. Die Problem ist, dass Unternehmen nicht voll vertrauenswürdig sind - und manchmal nicht verdient voll vertrauen kann - aber, dass auch Verbraucher fehlt, und wissen, dass sie nicht über die finanziellen Möglichkeiten in die Lage versetzt fühlen. With that uncertainty faced, consumers must be able to trust their financial provider to sell them good products and treat them fairly, and they must be confident that the ability to identify good products and to have their rights. The problem is that companies are not fully trusted - and sometimes can not trust fully deserved - but that also lacks a consumer and know that they do not feel put on the financial possibilities in the situation.

Die FSA finanzielle Leistungsfähigkeit Programm zur Vorbereitung einer Vision der besser informierte, aufgeklärte und als selbstbewusste Verbraucher, die in der Lage sind, mehr Verantwortung für ihre finanziellen Angelegenheiten zu übernehmen und eine aktivere Rolle auf dem Markt für llion Menschen über unsere Websites, Publikationen sollen und Schulungen und über Mittelsmänner. The FSA financial standing program to prepare a vision of better informed, educated and confident consumers who are able to take more responsibility for their financial affairs and a more active role in the market for llion people via our websites, and publications should training and through intermediaries.

Die FSA Antwort: Schutz der Verbraucher The FSA response: protection of consumers

Aber es ist wichtig, dass die Informationen, Bildung, Beratung und Fähigkeiten bewusst werden nicht von selbst eine Stärkung der Verbraucher. But it is important that the information, education, counseling and skills are not aware of itself empower consumers.

Was erwartet der Verbraucher vom Finanzsystem: What do consumers expect from the financial system:

* Die Verbraucher müssen darauf vertrauen können, dass die Unternehmen ihre Interessen zu schützen. Consumers must be able to trust that companies protect their interests.

* Sie müssen sicher sein, den Regler sorgt dafür, dass passiert. You must be sure the regulator will ensure that happens.

* Und sie müssen darauf vertrauen können, dass es Schutzvorkehrungen getroffen - Dinge wie ein faires und transparentes Verfahren Beschwerden und eine Ausgleichsregelung - wenn etwas schief geht. And they must have confidence that protective measures taken - things like a fair and transparent complaints procedures and compensation scheme - if something goes wrong.

Deshalb ist in den letzten 12 Monaten FSA (UK) verfügt über: Therefore, in the last 12 months, FSA (UK) has:

* bewegte sich schnell auf Entschädigung Grenzen für die Einleger zu erhöhen, drastisch zu erhöhen finanzielle Sicherheit für die Verbraucher; moved quickly to raise the compensation limits for depositors to dramatically increase financial security for consumers;

* getroffen raschem Handeln, um sicherzustellen, dass Unternehmen nicht für missbräuchliche Klauseln in tracker Hypotheken, die es erlaubt hätte sie nicht auf der Basis zu Zinssenkungen übergeben; taken swift action to ensure that companies are not for abusive clauses in tracker mortgage, which would have allowed it does not pass on base rate cuts;

* zog entscheidend, um sicherzustellen, dass die Verbraucher aus unabhängige Beratung zu suchen, dass sie das beste Produkt für sie erhalten, nicht nur die, die der Berater gibt die beste Provision; moved decisively to ensure that consumers seek out independent advice that they receive the best product for them, not just those who are the consultants, the best commission;

* Vorbereitung begonnen Zwangsmaßnahmen gegen Unternehmen vor kurzem untersucht im Hinblick auf ihre Hypothek Zahlungsrückstände Praktiken; Preparation commenced enforcement actions against companies recently investigated in terms of their mortgage arrears practices;

* vorangetriebenen Reformen, die Restschuldversicherung (PPI)-Markt, zum Beispiel auf einmaligen Prämie PPI; driven reforms, the payment protection insurance (PPI) market, for example on single premium PPI;

* deutliche Signale für hypothekarisch Restschuldversicherung (MPPI) Anbieter, die einseitig eine Erhöhung des Preises der Deckung oder die Verringerung des Schutzniveaus auf langjährige MPPI Verträge wurden, und clear signals for mortgage payment protection insurance (MPPI) providers that have been unilaterally increasing the price of coverage, or reducing the level of protection on many years of MPPI contracts, and Hochgefahren unsere Möglichkeiten für die Durchsetzung und Aktivität - Verbot und Geldbußen von Unternehmen in Rekordzahlen für unsere Abschreckung sicherzustellen, glaubwürdig zu bleiben. Ensure ramped our enforcement capability and activity - a ban and fines of companies in record numbers for our deterrent remains credible. Unsere Geldbußen bis 514% in diesem Jahr auf 27,4 Mio EUR und die FSA (UK) wurde kürzlich angekündigten Maßnahmen, die doppelt oder sogar dreimal so Geldbußen für bestimmte Straftaten Our fines up 514% this year to 27.4 million euros and the FSA (UK) has recently announced measures that will double or triple fines for certain offenses

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