Select a commercial bank that was identified as too big to fail during the 2007-2009 financial crisis and participated in the Emergency Economic Stabilization Act of 2008 (EESA).
Select a commercial bank that was identified as too big to fail during the 2007-2009 financial crisis and participated in the Emergency Economic Stabilization Act of 2008 (EESA). Sometimes referred to as the “TARP Act”, provisions of EESA were aimed at bolstering the economy and restoring confidence in the banking system. A 10-12 page (excluding appendices, table of contents, abstract, reference, and bibliography) research paper (case study) is required. This paper will be prepared consistent with the current APA Manual and will have a minimum of ten different references. Some of the bibliography and reference will most likely come from the firm you have chosen, e.g., source documents, annual reports, and financial statements. As such this reduces the need for peer reviewed sources. However, peer reviewed sources are still important and should be listed in the bibliography/reference section(s) and cited in the paper as appropriate. In addition, the research paper will be prepared consistent with the following:
Section I: This serves as an introduction to the Research Paper. Provide an overview of the research design of the paper. Introduce the various topics that will be addressed in the research paper. Identify the method(s) that will be used to collect the data for the topics and how that data will be evaluated.
Section II: There will be a brief discussion of the firm to include its principle services, market share, geographic locations where it operates, and major competitors.
Section III: Evaluate and discuss whether the firm took excessive risks or had banking practices that contributed to the firm requiring funds from the TARP program. The discussion should include what factor(s) influenced your decision, the ramifications of the firm receiving TARP funds, and what actions the firm implemented to prevent future financial crisis for the firm.
Section IV: Evaluate and discuss the size and scale of the TARP program, which only has a
few comparisons in U.S history. TARP has been compared to the Resolution Trust Corp. (RTC), which was used to abate the savings and loan (S&L) crisis of the late 1980s and early 1990s. Another comparison comes from the Home Owners Loan Corporation (HOLC), which was established during the Great Depression. Discuss the pros and cons of the Tarp program. Evaluate and discuss if classifying banks as Too Big to Fail can lead to excessive risk taking by the banks.
Section V: The Dodd-Frank Regulatory Reform Bill was passed with the intent of cleaning up the consequences of the past decade’s financial sector decline. Evaluate and discuss the
impact of Dodd-Frank on the firm and whether the law will help prevent future banking crisis.
Section VI: Summary and conclusion(s). The discussion should provide a brief summary of the previous sections, and the conclusions you have reached.Tags: commercial, crisis, during, financial, identified, participated, select