We all know about the Recession of 2008/2009 that impacted the economy and the financial health of the nation, but do you know why it happened? Long story short, mortgage loans were given out like lollypops at banks to people who did not have the means to repay them and many people defaulted on their loans. This lead to a huge deficit and prompted the government to enforce new laws and regulations for mortgage loans. Unfortunately, this is normally how new laws arise; from a crisis rather than from a preventive standpoint.
There are 2 bases of financial regulations: Continue reading Securities Markets Regulation: Part 1