Students in Free Enterprise business column
Raymond McDonough
Issue date: 9/30/08 Section: News
Since many people blamed the crash of 1929 on commercial banks that were too eager to put deposits at risk on the stock market, the government passed the Glass-Steagall Act, which divided banking institutions into separate entities, lending institutions and brokerages. In 1999, Congress passed the Gramm-Leach Bliley Act, which allowed lending institutions and brokerages to consolidate, however many investment banking companies were weary to do so because they did not want to be held to the regulations of the Fed.
Why bring this little history lesson up? The reason is to reveal that even though the era of investment banks has come to an end, it does not mean that it is the end of investment banking activities on Wall Street.
Goldman Sachs and Morgan Stanley will both be able to engage in investment banking activities; however they will be subject to the Fed being their primary regulator and overseer. The hope is that these changes will bring back stability into the financial markets.
As eluded to before, it is not just the financial markets that are in turmoil but also the real-estate markets forcing people out of their homes. One of the problems of the real-estate market is adjustable rate mortgages, leaving people subject to foreclosures. Students in Free Enterprise (SIFE) is an on campus organization that aims to help the surrounding community.
One of the projects being developed involves members of SIFE helping people with adjustable rate mortgages who are facing foreclosures.
In essence SIFE is an international organization that mobilizes university students around the world to make a difference in their communities while developing the skills to become socially responsible business leaders.
On campus, SIFE offers community service hours to business students needing to fill that requirement to graduate. Also, SIFE is the world's largest network of student and business leaders, and many companies who see a student has participated in SIFE have management tracks specifically for those students.
If you are interested in learning more about financial markets and changing the face of your community attend one of the meetings held this Tuesday and Thursday at 8 p.m. in Knott Hall B03.
Raymond McDonough is a member of the class of 2010 and contributes an informative column periodically to The Greyhound.
Why bring this little history lesson up? The reason is to reveal that even though the era of investment banks has come to an end, it does not mean that it is the end of investment banking activities on Wall Street.
Goldman Sachs and Morgan Stanley will both be able to engage in investment banking activities; however they will be subject to the Fed being their primary regulator and overseer. The hope is that these changes will bring back stability into the financial markets.
As eluded to before, it is not just the financial markets that are in turmoil but also the real-estate markets forcing people out of their homes. One of the problems of the real-estate market is adjustable rate mortgages, leaving people subject to foreclosures. Students in Free Enterprise (SIFE) is an on campus organization that aims to help the surrounding community.
One of the projects being developed involves members of SIFE helping people with adjustable rate mortgages who are facing foreclosures.
In essence SIFE is an international organization that mobilizes university students around the world to make a difference in their communities while developing the skills to become socially responsible business leaders.
On campus, SIFE offers community service hours to business students needing to fill that requirement to graduate. Also, SIFE is the world's largest network of student and business leaders, and many companies who see a student has participated in SIFE have management tracks specifically for those students.
If you are interested in learning more about financial markets and changing the face of your community attend one of the meetings held this Tuesday and Thursday at 8 p.m. in Knott Hall B03.
Raymond McDonough is a member of the class of 2010 and contributes an informative column periodically to The Greyhound.
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