The functioning and performance of the financial industry are influenced by the regulatory measures (or instruments or frameworks) adopted and enforced by the government. These measures and frameworks have evolved and finetuned over time to make them more efficient with the goals of minimizing risk of banking crisis and improving the performance of the banking industry. However, regulation faces challenges; it cannot fully eliminate risks in a world characterized by information imperfections, exogenous and endogenous shocks, technological innovation, and globalization. 

• •  Choose one regulatory measure or framework that was adopted by the US government (whether still in force or terminated) to regulate the US financial industry, and describe its key goals (what was it set to achieve?). Please explain and describe the key motivations under that regulation; that is, why the specific regulation was established (what problems was it meant to resolve?). Discuss whether the regulation has been able to achieve its goals. 
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• • Provide some evidence for success or failure. Then, i) if you found that the measure was successful, say why it was successful (what helped to make it successful?). ii) if not, say what were/are the problems that prevented achievement of the objectives (why was is not successful?).

 

Please Use at least 3 authoritative references (books; articles published in scientific journals or in reputable magazines such as The Wall Street, New York Times, etc. Not readings freely posted online.). These references must be cited/referenced in the text; that is, you must use the references in writing your essay, not just list them in the bibliography. 

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Regulation has long been a cornerstone of the US financial industry aiming to ensure stability protect consumers and promote fair competition One significant regulatory measure that was adopted to ove... View the full answer