GGR221H1 Lecture : GGR221 Lec 9
Document Summary
1980s 1990s financial exclusion paved the way for the 2000s a way for inclusion, in the form of subprime mortgages. In usa and canada - deregulation in financial services. In usa: there were a series of laws in 1980s and 1990s -deregulating savings and loans institutions, and relaxed inter-state banking restrictions. Banks couldn"t grow too big in us unlike canada. Restrictions were relaxed allowing banks to grow bigger. Allowed commercial banks, investment banks, securities firms and insurance companies to consolidate. Excluded large investment banks and a number of financial instruments from regulation. Separated commercial banks (regular banking of public) from investment banks. So average consumer did not have to worry about banks gambling and losing all the money. Commercial banks were not allowed to engage in investments and vice versa. Citycorp emerged with traveler"s group (insurance company) -> this is an example of a bank and insurance company merging.
