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
