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Flashcards in R8-Pt5-8 Deck (15)
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1

What is considered the biggest change to financial regulation since the Great Depression of the 1930s?

The Dodd-Frank Wall Street Reform Act of 2010

2

What is the goal of the Volcker Rule?

Banking Institutions maintain healthy capitalization ratios

3

How does the Volcker Rule limit banking institutions?

Limits banking institutions from owning more than 3% of a hedge fund's total ownership interest

Limits banking institutions from owning interests in hedge funds that exceed 3% of their Tier 1 Capital (Common Stock + Retained Earnings + non-redeemable; non-cumulative Preferred Stock)

4

What does the Volcker Rule require banking institutions to disclose?

Relationships with hedge funds must be fully disclosed to regulators

5

What are the 3 Independent Steps that can occur simultaneously in Money Laundering?

- Placement: Putting proceeds of illegal activites into the financial system
- Layering: Move Funds around to make it difficult to follow
- Integration: Movement of Money into Legitimate-Looking Transactions

6

What is the $ Threshold for All Financial Institutions that will have to file a Report?

-Transactions of more then $10,000

7

What is a Financial Institution?

- Not only Banks
- Credit Unions
- Pawn Brokers
- Casinos
- Brokerages
- Travel checks, Credit Cards companies

8

BSA Regulations require Banks to maintain Records for?

- 5 Years at $3,000
- Identifying with: name, adrs, birth date, tax ID

9

At a Minimum, a Bank's Internal Compliance Program must be?

- Written, Approved by the Board of Directors, & Noted as such board minutes in meetings

10

What is the Sherman Act?

- Prohibits Restraints of Trade & Monopolies
- Impact on interstate commerce: Fed. law applies

11

What is Section 1 of the Sherman Act?

- Restraints of Trade:
- Rule of Reason Test: Balance Anti-competitive & Competitive Effects
- Per Se Violations: Inherently illegal & Without Legal Justification
- Horizontal Restraints: Agreements Between Competitors
- Vertical Restraints: Agreements by those at Different Marketing Levels

12

What is Section 2 of the Sherman Act?

- Monopolies & Attempts to Monopolize

- Illegal Monopoly: Power & Power achieved unfairly

13

Monoloply power exists when ?

- A Firm has sufficient market power to Control Prices or Exclude Competition
- Market Share of more 70%

14

What is the Clayton Act?

- Aimed at Anti-competitive Behavior NOT covered by Sherman Act
- Stop activities in their Incipiency

15

What is the Robinson- Patman Act?

- Amended & Strengthen Section 2 of the Clayton Act that prohibited Price Discrimination

- Only apply to price discrimination of commodities of like grade & quality