Banking Insitutions and Big Businesses Regulated or...

Regulation is defined as a law, rule, or other order prescribed by authority, especially to regulate conduct. Deregulation is defined as to remove government regulatory controls from an industry, a commodity, etc. The big question is can an institution of any type able to self-regulate in an appropriate manner. Are they able to put profit to the side for the health and safety of people? Are they capable of making ethical decisions and to not adversely affect people? Does the past indicate this? And if they display good judgment should regulation be scaled back? Banking institutions and big business have done severe damage to the American economy and destroyed millions of lives, many times. Panics, depressions and recessions riddle our†¦show more content†¦Then bundling and selling off these loans that turned into toxic assets on the market. If that wasn’t enough they took out insurance on these toxic loans, which AIG backed. When banks and brokers came to collect on their hedged bets, it was almost collapse AIG. This started a chain of near bankruptcy and the act of the bail out or TRAP. Under President Franklin D Roosevelt, a man named Ferdinand Pecora, was responsible for exposing the shady dealings of big banks, tax evasion, self-dealing, and bad speculations, which resulted in the Glass-Steagall act of 1933. Pecora wrote in his book Wall Street Under Oath, â€Å"Under the surface of the governmental regulation, the same forces that produced the riotous speculative excesses of the ‘wild bull market’ of 1929 still give evidences of their existence and influence.†¦ It cannot be doubted that, given a suitable opportunity, they would spring back into pernicious activity.† I do believe he was right. Although we have had some recessions between the 1940’s and now, nothing to the magnitude of the Great Depression or the Great Recession. I personally believe it’s a little more than a coincidence that the economy crash happened just 9 years after the repeal of Glass-Steagall in 1999 under President Clinton. A handful of greedy Americans are affecting the rest of American lives and reputations. Many people including my own parents, that played by the rules,