Sec. 1 - Ch.5: Financial Institutes Flashcards
What are the 3 federal agencies involved in bank regulation?
- Comptroller of the Currency
- Federal Reserve
- Federal Deposit Insurance Corporation (FDIC)
What are the agencies involved in a state-chartered bank?
- The regulatory Authority of the state the bank is located in
- The Federal Reserve
- The Federal Deposit Insurance Company (FDIC)
What agencies regulate Savings and Loans?
They can be federally or state regualted
- A branch of the FDIC
- The Federal Home bank Board
What are the standard Insurance Limitations?
$250,000 per depositor, per insured bank for each ownership category
What type of accounts are not insurable?
- Stock investments
- Bond investments
- Mutual Funds (including money market mutual funds)
- U.S. Treasury Bills, bonds, or notes
What type of loans do credit unions offer?
- New or Used vehicle loans
- First and Second mortgages
- Home equity
- Personal signature
- Student loans
- Consolidation loans
**They don’t typically offer commercial loans
What is the purpose of a broker-dealer
Brokerage companies act as agents in executing orders to buy and sell securities on various stock exchanges
Who regualtes brokerage companies?
The SEC through FINRA
What is the Insider Trading and Securities Fraud Enforcement Act of 1988?
In insider is a person with access to key information before it is made available to the public. Often directors, officers, and key employees and may also include relatives and others in a position to capitalize on insider trading
What is the purpose of Insurance Companies?
They provide a mechanism for risk sharing and risk transfer
What are the principle goals of state regulation of insurance companies?
- Maintaining the solvency of insurers
- Protecting policyholders against mistreatments by insurers
- Maintaining fair competition
- Helping assure coverage will be available to all who want and need it
What do the 3 branches of government, at the state level, do to regulate insurance companies?
- Legislative branch passes insurance laws and provides funding for regulation
- Judicial branch interpret insurance laws and resolve disputes
- Executive branch, through the insurance commissioner, enforces insurance regulatory laws
What are the 3 main areas of federal regulation of insurance?
- HIPAA related to health coverage continuation
- Standardization of Medicare supplement policies
- Taxation of various insurance policies, including life insurance, annuities, long-term care, viatical settlements, disability, etc.
What are CDs also referred as?
Time Deposits
