FINC314 Lecture Notes - Lecture 2: Friedrich Hayek, Morgan Stanley, Financial Adviser
29 Aug 2016
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Document Summary
Regulation isn"t too important of a topic for him. Few issues have been more controversial in the last half decade or so than the oftentimes raging debate over the current state of regulation of the financial markets of the united states and of the institutions which dominate them. This third exploratory note this evening briefly addresses the history of financial market regulation in the united states from the late 19 th century through today and also examines some of the primary arguments both for and against regulation. Banking act of 1933 and within it you had. Big change in the types of securities to hold and the types of activities that the banks could pursue. Changes in what commercial banking institutions were able to do from the standpoint of investment practices, etc. This act split investment banking (securities business) from the commercial banking business. Say a bank makes a bunch of bad loans to a firm.
