Moral Hazard in Banking Essay -- essays papers

Moral Hazard in Banking Moral hazard is an asymmetric information problem that occurs after a transaction. In essence, a lender runs the risk that a borrower will engage in activities that are undesirable from the lender's point of view, making it less likely that the loan will be paid back. Gary H. Stern's article, "Managing Moral Hazard with Market Signals: How Regulation Should Change with Banking", addresses the moral hazard problem inherent to the financial safety net provided by the government protection of depositors. Interest rates do not reflect the risk associated with bank activity, which in turn causes banks to finance higher-risk projects with price tags that are not parallel to the risk level. A solution to the moral hazard problem lies within government supervision and regulation. In the article, Stern challenges the assertion that proposals that rely exclusively on government regulation will satisfy the problem of moral hazard, especially for TBTFs (Too Big to Fail banks). Stern states several factors to support such assertions:  The ability of regulators to contain moral hazard directly is limited, due to the exploitable tactics of regulatory reform.  Limited confidence that regulation and supervision will lead to bank closures before institutions become insolvent.  The limited ability of regulators to asses bank risk due to asymmetric information and reliance of internal bank models that may be inaccurate. &...

Information Technology Acts

Technology has advanced greatly in the recent years. The internet has made it is easy for people to get any information they want, which in return presents danger to minors. This advance in technology has opened new issues that need to be addressed. Children depend on adults to protect them from any harm and as a result government passed acts to prevent child abuse on the internet. The two acts being discussed in this paper are the Children’s Internet Protection Act of 2000 and the Children’s Online Protection Act (COPPA) of 1998. Children’s Internet Protection Act, 2000 The Children’s Internet Protection Act (CIPA) is a federal law which was passed by Congress to prevent children from viewing the offensive or harmful content over the Internet (â€Å"FCC†, 2013). CIPA regulates the schools and all public libraries. It makes it mandatory to filter all its computers to stop children from accessing sites that are not appropriate. (â€Å"FCC†, 2013). The (CIPA) was passed in December 2000 and its main priority is to protect children’s innocent eyes from child pornography and other dangers of the internet. CIPA does not require a certain kind of filter system, but rather to make sure schools and libraries have some sort of filters to prevent such activities. There are online predators, inappropriate chat rooms, and sexual content that children are at risk for if this law was not passed. Ultimately, all households, schools, libraries, workplaces, and restaurant have access to the internet and this is a law that needed to be passed. Children’s Online Protection Act (COPPA), 1998 The Children’s Online Privacy Protection Act (COPPA) was passed in 1998. It specifically addresses children under the age of 13 that navigate thru any sort of internet service. COPPA requires anyone driving a website to have verifiable knowledge and consent from parents of any child 13 and under. Also, the driver has to get the consent of those parents before using any information given to them by the children. Furthermore, whether studying, shopping, surfing or chatting, children are blind to the fact that there are bad people who get their information and use it for all the wrong reasons. Advances in Information Technology The internet is a worldwide tool that is used for many different reasons. The Children’s Internet Protection Act of 2000 and the Children’s Online Privacy Protection Act of 1998 is a product of advances in information technologies. Regrettably, the internet can be used anywhere and anytime. The wireless fidelity, Bluetooth networks, and ultra wide-band network all give access to internet from any cell phone, computers, laptops, or tablets (Rainer Jr. & Cegielski, 2007). In addition, this creates a problem for minors because there are many online predators looking for ways to transition children into their world of viciousness. As a result, advance in information technology has created eye openers for every parent around the world. The advance in information technology opened issues that needed to be addressed because Children depend on adults to protect them. The government passed the Children’s Internet Protection Act of 2000 and the Children’s Online Protection Act (COPPA) of 1998 as a result of advancement in technology. As a matter of fact, parents should be more cautious as to what their children are using the internet for. Ultimately, the responsibility of a child falls on their parents References FCC.  (2013).  Retrieved from http://www.fcc.gov/guides/childrens-internet-protection-act Rainer Jr., K. R., & Cegielski, C. G. (2007). Information Systems (3rd Ed.). Hoboken, NJ: John Wiley & Sons, INC.

Before Nelson Mandela Went On Trial Along With Other Anc

Before Nelson Mandela went on trial along with other ANC leader that sentenced them, Mandela open up with a powerful and emotional speech that was about four hours long. In Mandela speech he made some valiant points: â€Å" White supremacy implies black inferiority. Legislation designed to preserve white supremacy entrenches this notion. Menial tasks in South Africa are invariably performed by Africans. When anything has to be carried of cleaned the white man will look around for an African to so it for him, whether the African is employed by him or not. Because of this sort of attitude, whites tend to regard Africans as a separate breed. The do not look upon them as people with families of her own: they do not realize that we have†¦show more content†¦I have fought against white domination, and I have fought against black domination. I have cherished the ideal of a democratic and free society in which all persons will live together in harmony and with equal opportunities. It is an ideal for which I hope to live for and see realized. But, My Lord if it needs be, it is an ideal for which I am prepared to die (Peralta).† Nelson Mandela attitude toward the entire incident was hopefu l. Event thought the punishment was 27 to life in prison was a bit harsh. Mandela kept his sanity even through harsh treatment and sickness while in prison. Nelson Mandela spent 27 years in prison 18 of those years incarcerated on Robben Island and the rest at Pollsmoor Prison. While Mandela was on Robben Island he still was a strong symbol for black resistance who was for his release and led an international campaign. Mandela had a global political community that was still growing while he was in prison. That is when the South African government descried to move Mandela and the 10 ANC to another Prison the Pollsmoor Prison. They were hoping to cut off contact between them and the South African Government. But it didn’t work, his people was only growing stronger which led to previously president and other government to have many private talks with Mandela. This led to Nelson Mandela becoming the first black President of South AfricanShow MoreRelatedNelson Mendela: A Promiment Hero Essay767 Words   |  4 Pagesâ€Å"It always seems impossible until it’s done.† Nelson Mandela is a renowned African leader and is known for advocating love, peace and unity. Nelson was keen for transforming a model of racial separation and oppression into an open democracy. In his time, Nelson served a significant role as former president of South Africa during the Apartheid era. Before he became a hero, he underwent overwhelming obstacles. Nelson spent 27 years in prison not for a murder or act of genocide he committed, but forRead MoreThe Bravery of Nelson Mandela1431 Words   |  6 Pagesoff one’s chains, but to live in a way that respects and enhances the freedom of others† (Newsone.com, 2011). 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