Identify three ways that banks impact the economy. Include clear examples and well-defined reasons.

• Identify two regulations and describe their origin and role in managing risks within banks.
• What risk management standards did the banks employ as a result of the regulations?
• What are the consequences of failing to meet the standards outlined by the regulators?
• Would a firm be prudent to properly manage its leverage and liquidity levels if they are not regulated? Why or why not? What tools can organizations employ to manage the risks caused by inadequate levels?