The following assignment consists of 3 questions which require a good general understanding of the causes and consequences of the global financial crisis which in turn provides the context in which the role of regulation can be understood. The first question has 3 parts and will be awarded a total of 30 marks. The second question focuses on post crisis reforms and the adequacy of their implementation and carry’s 30 marks. The third case element of the question requires engagement and expansion on the response to question 2 by analysing the effective implementation of post crisis reforms in a selected bank. Headings needed! Please apply 2 sociological theory: SAF, Kindleberger

Q1. Describe the main causes of the financial crisis. If there are multiple causes, try to quantify the relative importance of each cause. Specifically: i) What was the “spark” that set off the fire? Or, what was the precipitating factor? ii) Why and how did the crisis spread throughout the entire world economy? iii) Which regulatory “backstops” failed to prevent the spread of the crisis? How and why did they fail? (30 marks=1200 words). << for i, Please include Deregulation, Business Model change to OTD, Financial Innovations including CDO, CDS, economic& social background( Trade deficit &US interest rate during 20001-2006, subprime mortgage amount over time, Bush administration), MBS

Q2. After the financial crisis, government and regulators have been subjected to calls demanding “stronger” or “better” regulation of financial markets. Drawing on key recommendations published and discussed in policy papers, consulting reports and news items from 2009 onwards, discuss whether these have been adequately implemented. (30 marks=1400words). << Choose 3-4 policies including i. ring fencing (ICB), ii. Capital-related policy (Turner Review) from summary of reform. What are the advantages and disadvantages of each policy, how many degrees the policy was effective, whether the policy was adequate to the post-crisis setting, if not adequate, then why it was not? In today’s context are those policies realistic and efficient? Whether those policies can prevent the new Financial Crisis?

Q3. Given your answer in question 2, (You must link Q2) and Q3)) choose one bank (Barclays) and illustrate how this particular bank has responded to the post-crisis environment. Use different sources and types of information (financial, (product) market data, regulators comments, corporate discussions) to support your answer! (40 marks=1400 words) << How does your bank discuss the impact of regulatory changes, both within the UK context and globally, what strategic decisions are being made and how does the narrative of strategic change develops? What evidence can you find for your bank’s involvement in scandals and how do they respond to it?

Thank you.