TAILIEUCHUNG - Lecture Financial markets and institutions: Chapter 14 - Anthony Saunders, Marcia Millon Cornett

Chapter 14 - Other lending institutions: Savings institutions, credit unions, and finance companies. This chapter provided an overview of the major activities of savings institutions, credit unions, and finance companies. Savings institutions and credit unions rely heavily on deposits to fund loans, whereas finance companies do not accept deposits but find themselves mainly with commercial paper and long-term security issues. | 8- McGraw-Hill/Irwin Chapter Fourteen Other Lending Institutions: Savings Institutions, Credit Unions, and Finance Companies 14- McGraw-Hill/Irwin Savings Institutions (SIs) Historically referred to as Savings and Loans (S&Ls) Savings banks (SBs) appeared in the 1980s Specialize in long-term residential mortgages, which are usually financed with short-term deposits of small savers Faced a huge crisis during the 1982-1992 period that saw over half of all SIs fail 14- McGraw-Hill/Irwin The S&L Crisis of 1982-1992 Some 4,000 SIs existed at the end of the 1970s By 2007, only 1,257 SIs exist The Federal Reserve radically changed its monetary policy during October 1979 to October 1982 targeted reserves rather than interest rates led to sudden surge in interest rates many SIs faced negative spreads SIs lost depositors because of Regulation Q 14- McGraw-Hill/Irwin The S&L Crisis of 1982-1992 Depository Institutions Deregulations and Monetary Control Act (DIDMCA) of 1980 and Garn-St. Germain Depository Institutions Act (GSGDIA) of 1982 addressed the crisis allowed interest-bearing transaction accounts allowed SIs to offer floating- or adjustable-rate mortgages allowed expansion into real estate development and commercial lending some SIs chose to invest in the junk bond market and suffered large losses when the junk bond market collapsed in the mid-1980s 14- McGraw-Hill/Irwin The S&L Crisis of 1982-1992 Real estate and land prices collapsed in many areas of the . in the mid-1980s many mortgages defaulted as a result The Federal Savings and Loan Insurance Corporation (FSLIC) had a policy of regulatory forbearance ., its policy was to not close economically insolvent FIs, allowing them to continue to operate 1,248 SIs failed in the 1982 to 1992 period the FSLIC became massively insolvent as a result 14- McGraw-Hill/Irwin The S&L Crisis of 1982-1992 The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of .

• Tài chính doanh nghiệp
• Financial markets
• Financial institutions
• Lecture Financial markets and institutions
• Financial institutions markets
• Savings institutions
• Credit unions
• Lecture Financial markets
• Thị trường tài chính
• Financial futures markets
• Valuation of financial futures
• Interest rate futures
• Capital markets
• Money markets
• Derivative securities markets
• Futures markets
• Option markets
• Swap markets
• Foreign exchange derivative markets
• Bank management
• Types of Financial Markets
• Securities traded
• Valuation of securities
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Commercial banks
• Financial statements
• Risks at financial institutions
• Market risk
• Exchange rates
• Economics 252
• Efficient markets
• Excess volatility
• Efficient Markets Hypothesis
• Interest rate derivative markets
• Interest rate swaps
• Mortgage backed securities
• Globalization of mortgage markets
• Financial markets and institutions
• The financial system
• Interest rates change
• Financial markets efficient
• Term structure affect interest rates
• The stock market
• The mortgage markets
• The international financial system
• Financial regulation
• Interest rate fundamentals
• Interest rates
• Security valuation