In: Accounting
Solution 1. a). In my opinion reforms in baking sysytem threatens the U.S. free market system beacuse its main lending practices depend upon the baking system. The governemnt need the banks for their day to day transacions and funds in all over the country and world. The extent of governemnt inervention in the finacial system would make the system stuck and worse , this would also leadto economic crisis. If the bankig system would be down the whole economy of the nation would collapase and turn to economic crisis in the country.
b). In 2007-2008 US faced the huge economic crisis because of that the politicians also played the major role in taking adavantage in this great recession period.The legislation and the hired consumer protection agency came together to oversight the U.S. free market baking system.
c). Due to some diagreement of opposition Repulicancans, agency delayed in impliment their functions to bailing out the Lehman Brothers investment bank and other's banks too.
d). The free market economy exploited by other's peopls's money ,for example: many of the persons get fired and went to jail for such paculation and malpractices except any politician or policy maker.
2. a). Time to time Reforming or regulationg the baking system is necessary so that system run smoothly and having less change of facing economic crisis. The change in the technology and development the prevailing rule and regulation would not apply in the change scenerio.
b). New change in baking system leads to more and more recovery of Bad debt and the system would ready to adopt new strategies to compete in the market on global
For example: the U.S financial CHOICE Act, which passesd in the house on june 8, 2017, represent a new and sifferent approach which replace the old regulatory system. This aim of this act is providing regulatory relief to subset of banks (smaller and insignificant banks).