Too big to fail Essay Example | Topics and Well Written Essays - 500 words - 1

Too big to fail - Essay Example However there is another school of thought that correlates size with stability and calls the ‘too big to fail’ a farce. According to this thought stability of big names comes from high investor confidence, well-framed insurance policies and regulations etc. The big names are associated with trust and long-term customer relationship. However, the big banks increase the systematic risks causing smaller banks to collapse. Also with the size increases monopoly in the economy with larger names hoarding over the business scene with little or no advantage to the smaller players. This unfair treatment creates resentment in the smaller units and thus the level playing field is not achieved. Having used many interventions in the past years, the Fed has now somewhat taken a back seat towards protecting the large banks. As the huge structures demand huge funds which are simply unavailable to save them nowadays. This brings us to the Dodd-Frank Act that was enacted in 2010 as a preventive measure after the 2008 crises. ‘ Its first objective is to limit the risk of contemporary finance – what critics often call the shadow banking system; and the second is to limit the damage caused by the failure of a large financial institution.’ (Skeel, 2011) This act has made some regulatory changes, identifying non-banking financial system and regulating bank holding companies. An important part of this act is the Volcker Rule that refrains US banks to enter into speculative investments, thus keeping the commercial banks separate from the investment banks. Thus the size brings stability and returns leading to economic growth for a country. But overdoing of goodness turns bitter and in the same manner a bank too big will eventually topple over and when it does the smaller units will be crushed under it. The too big to fail slogan is right but only to a certain extent as the government will

Court report Essay Example | Topics and Well Written Essays - 1500 words

Court report - Essay Example The court tries and decides appeals from lower courts on matters of public concern to settle legal contentions and uncertainties surrounding the questions presented before the bench. This report aims at exploring the Acts applicable the trial of an accused depending on the crime committed. It outlines the activities regarding the relationship among the persons present in the courtroom during trial. It further explores the rights of the accused before conviction. During a court process, members of the public follow court proceedings from a public gallery to ensure the legal process open and transparent. Before accessing the gallery, those in attendance undergo rigorous security checks to ensure safety during the court process. Upon arrival in the courtroom, I accessed a list of cases being tried on that particular day. The trial involved a defendant charges on two accounts. On the first account, the defendant was facing charges of the possession of marijuana. On the second account was the intent of peddling and supply of the same. Under the UK drug act, possession and peddling of the drugs face penalties depending on the classification of the drug in question. Illegal drugs are categorized into different classes; hard drugs like cocaine and heroin are under class A and attract severe penalties. Marijuana and anabolic steroids are categorized under class B and attract lesser penalties compared to class A (UK Government, 2015). The drugs polic y also stipulates different penalties for the intended use of the drugs. If an accused is arrested with large amounts of drugs and cash at the same time, he is charged for drug trafficking and distribution. That is a serious felony and can attract a life imprisonment sentence depending on the classification of the drug. The punishment also depends on factors such as geographical distribution of the substance. Considerations are applicable to defining whether minors were involved in trafficking