Question: See if you can develop a good case for and against the regulation of financial institutions in the following areas: A. Restrictions on the number

See if you can develop a good case for and against the regulation of financial institutions in the following areas:
A. Restrictions on the number of new financial-service institutions allowed to enter the industry each year.
B. Restrictions on which depository institutions are eligible for government-sponsored deposit insurance.
C. Restrictions on the ability of financial firms to underwrite debt and equity securities issued by their business customers.
D. Restrictions on the geographic expansion of banks and other financial firms, such as limits on branching and holding company acquisitions across state and international borders.
E. Regulations on the failure process, defining when banks and other financial firms are to be allowed to fail and how their assets are to be liquidated.

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A Restricting entry into the banking industry limits competition and to some extent protects some banks from failure On the other hand restricting ent... View full answer

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