An article in the Wall Street Journal notes: Higher capital requirements effectively limit how much SIFIs can
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An article in the Wall Street Journal notes: “Higher capital requirements effectively limit how much SIFIs can borrow, and can crimp profitability.”
a. What is a SIFI? Why does the Dodd-Frank Act require SIFIs to hold more capital?
b. Why would holding more capital limit how much a financial firm can borrow and reduce the firm’s profitability?
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a SIFI stands for a systemically important financial ins...View the full answer
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Related Book For
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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