...Shadow Banking in China: Boon to Bane The shadow banking system is a term for the collection of non-bank financial intermediaries that provide services similar to traditional commercial banks. Shadow banking, in other words, is a system that is governed by a coterie of financial intermediaries that carry out traditional banking functions like borrowing and lending but in a way that is loosely connected with the traditional functions of depository institutions. Examples of important components of the shadow banking system include securitization vehicles, asset-backed commercial paper (ABCP) conduits, money market mutual funds, markets for repurchase agreements (repos), investment banks, and mortgage companies." Shadow banking has grown in importance to rival traditional depository banking and was a primary factor in the subprime mortgage crisis of 2007-2008 and global recession that followed. Shadow banking is sometimes said to include entities such as hedge funds, money market funds, structured investment vehicles (SIV), "credit investment funds, exchange-traded funds, but the meaning and scope of shadow banking is a matter of much debate. It is said that commercial as well as investment banks conduct much of their business in the shadow banking system, but most are generally classified as shadow banking institutions themselves. RISK OR VULNERABILITY: Shadow banks, since they are not covered by the same prudential regulations as depository banks, can afford to have a relatively...
Words: 1517 - Pages: 7
...Legal Environments of Business Final Exam Essay SHADOW BANKING SYSTEM We hear a lot of talk about the “shadow banking system” and its crucial role in the financial crisis. But are we taking the time to step back and ask some basic questions: What is shadow banking, where did it come from, how did it operate, what role did it play in recent financial crisis and how do we deal with it going forward? Shadow Banking System definition The financial intermediaries involved in facilitating the creation of credit across the global financial system, but whose members are not subject to regulatory oversight. The shadow banking system also refers to unregulated activities by regulated institutions. Comprising Entities The Shadow banking system entities that make up the system is made up of non-depository banks as well as other financial entities which included insurers, hedge funds, investment banks, money market funds, structured investment vehicles, conduits and monolines. Two examples of well-known shadow banking institutions are Bear Stearns and Lehman Brothers. Shadow banking institutions are usually the middle men between the investors and borrowers making it possible for both parties to meet. For instance, if a corporation is looking for funds to borrow, at the same time an institutional investor like Bear Stearns or Lehman Brothers may be willing to lend money. This is where the shadow banking institution steps in to create a passage of funds from investor to the...
Words: 1477 - Pages: 6
...Shadow banking – chinese shadow banking model INTRODUCTION In early 2007, All States Financial Corporation was celebrating a historic achievement in the year just past when its net income exceeded $1 billion for the first time in history. The firm's 2006 earnings totaled $1.154 billion on year-end assets of $80 billion (see Tables 1 and 2). The corporation was the twelfth largest banking company in the United States. The firm had over 53,000 employees, and the market capitalization of its stock was in excess of $16 billion. The firm was proud of its 3,449 business offices—All States Financial employees called them "stores"—which were distributed across all 50 states. The corporation had three major components: All States Financial Banks, with offices in 16 states; All States Financial Mortgage, which claimed to finance one out of every 15 mortgages in the United States; and All States Financial Financial, a consumer finance subsidiary with 3.6 million customers. FUNDING PATTERN All States Financial's three business components provided the firm with an enormously diverse base of earning assets, including net loans and leases of $38 billion (Table 1). Much of the asset base consisted of consumer products, including installment loans, sales finance contracts, and credit card loans. All States Financial held a large portfolio of mortgage servicing rights. In addition, the firm had a diverse presence in business lending. Its typical small office, often located outside of large...
Words: 474 - Pages: 2
... Page 2 The Allegory of the Cave from the faculty of Washington College, is the article I found that gave me meaning as to what Plato was trying to say . It showed that the Prisoners saw only the shadows of what the puppet men were carrying and they only said what they thought the images were . In the example the prisoners thought he “ saw a book , but he was not seeing a book , he was seeing a shadow of a book . “ Plato’s point is that they were referring to shadows they saw on the wall and not the actual item that the puppet men were carrying in front of the fire that caused it to make a shadow on the wall. The example given in The Allegory of the Cove shows us that the prisoners were no really seeing the object but the shadow of an object that was reflected on the wall , if they could have turned around , which they could not , because they were chained , they would have seen that the real item was being carried by the real item was being carried by the puppet men and they were only seeing a shadow of the item. I believe this application was valid because it shows an illusion . If the prisoners could have seen the real article that was being passed in front of the fire , all that they were seeing was the shadow of the item on the wall . The prisoners think they are seeing an item such as a book but...
Words: 524 - Pages: 3
...Top of Form Assignment: PRESENTATION and handout For your oral exam, you will be working as a corporate analyst for your teacher. Your main responsibility will be to develop a feasibility study outlining the parameters for possible future investment in your chosen company. This process is called Due Diligence: essentially, you will play the role of an objective third party. This means that your only loyalty is to an objective account of the current state of affairs. You are to choose a company and have it approved by your teacher. You will then be responsible for analyzing the company and making recommendations either for or against future investment. You will have to defend your analysis. Remember: you are working for your teacher, not for the company: Due Diligence requires objectivity! This assignment is graded and your marks count for 5 points of your final marks. You will receive a group mark, both for content and presentation and for your performance in English. First, you must select the company you are going to analyze (week 24 – groups have to be formed by week 23) and have it approved by your teacher. To be included in your analysis are the following: - SWOT-analysis - Legal Status (pending contracts, current litigation) - Financial Status (accounting, cash reserves, recent/future investments, share price) - IT (systems involved, recent updates, future plans) - Marketing (Strategies, competitors) - Operations (management, supply/distribution networks) - Environmental...
Words: 565 - Pages: 3
...| | Assignment: Enterprise IT at Cisco Case Write-Up | Summary: Enterprise IT at Cisco Systems is an interesting case that demonstrates what happens when a company’s IT infrastructure is decentralized. In the case of Cisco, the word decentralized was demonstrated in how the individual departments conducted business in their own ways and not in conjunction with other business functions. At one point, this approach was encouraged as it was believed to allow departments, and the people running them, the ability to avoid company politics, to ensure their priorities were met, and to encourage each department and individual the opportunity to be creative and innovative, which is a fundamental component of Cisco’s company style. Brad Boston, CIO of Cisco, believed that it was possible to retain that company attitude of innovation in a more centralized manner to decrease redundancy and formally integrate systems. While there was a great deal of pushback from employees, and the full centralization will take a great bit of time, Boston was making the best choices for the company. 1. How did Cisco find itself in such trouble with regard to its internal IT in 2001? Why didn’t the single ERP system help more? Why didn’t this ensure more consistency? As briefly mentioned above, Cisco found itself in such trouble as a result of allowing every department and employee operate freely and with little regard for what others were doing. As stated on page 4 of the case study, “Boston...
Words: 1141 - Pages: 5
...Bark. Here is a sample essay for you to not look at. Thanks. In order for this to be long enough, I need to have two hundred and fifty words. Let’s see how far I can get without using any extra spaces or numbers. How are you? I am good. What is the weather like over there? It’s about fifty degrees and we have not gotten snow in about two weeks. How far are you? About eighty words so far. Quite a few more for me to go. What do you think? Hm… I suppose that I can continue to listen to Eminem. Or is it Slim Shady? Only the shadow knows. Speaking of shadows, do you know if a tree falls in a forest and no one is there, does it make a sound? Yes it does, of course. I can also tell jokes. What do you call a lazy kangaroo? A pouch potato! Yes, I know that was a bad joke. I also have more jokes if you would like to hear. Here is more of my essay. How far now? About one hundred and eighty nine words. Yep. Everything looks like it is eight mile now. Really? It is a lot safer in this area than downtown Detroit. Did you know that Detroit is not as dangerous as people seem to believe that it is? Actually Hamtramck is much worse. People have to lock their doors as they drive through the city since people will come up to one’s car and try and take parts off of it as it moves. Scary, huh? All...
Words: 269 - Pages: 2
...Imagination Paper Dustin Stone ENG/340 Ocotber 19, 2015 Korijna Valenti Imagination Paper Art is one of the best things in life, because it is objective in its appearance but appeals to every single person in a subjective and meaningful message. Art can make a story from simple lines on a canvas that all interconnect into a grand design, to the creation of characters, and invoke the sense of dark versus light. In order to have all these components one must be able to develop a story from the art work before they can incorporate characters/ objects, and introduce the elements of light, darkness, shadow and color. Story within the Artwork Smith, or Smithy is the name of the match or that’s what all matches called one another, but we will call him Smith. Smith was just sitting in his matchbox, sometimes he was knocked on to the other smiths, and sometimes he was the last of his companions. It was and still is a crazy life for a match. First, they get hot head very fast and end up setting fire to other Smith’s or objects that did them no wrong. Now this specific day was very special. It was Smith’s birthday. He has survived longer than all of the other Smiths. He had spent a whole year stowed away in a box that once felt like a crammed closet, but now felt like a mansion. Smith knew that something grand was going to happen on his special day he just knew it. Smith wonders would he be used on top of a cake, or maybe to star fireworks. To Smith it did not...
Words: 1080 - Pages: 5
...Ashleigh Wheat April 24, 2011 Comm. And the Media Matthews Plato: The Allegory of the Cave Imagine a life of only looking at the shadows on a wall. Not knowing what the outside world was like or even what a person looked like. Just monstrous shadows projected on the wall in front of you. The prisoners in Plato’s story were born in a cave and chained in a way they only knew the wall in front of them. In the allegory of the cave the prisoners were not allowed to look at anything but the wall. They were chained with a “bridge” behind them. I refer to it as a bridge because people walked across it carrying their water or camels. I used the youtube video: “The Cave: An adaption of Plato’s Allegory in Clay” as a reference. It helped me understand the story more in depth but yet there was a lot more to tell through the text “Plato, The Allegory of the Cave.” I believe that my favorite sentence from the article I chose would have to be “…and you will see, if you look, a low wall built along the way, like the screen which marionette players have in front of them, over which they show the puppets.” (Kreis, 2000) Once I read this I could see a picture in my head. I felt that I was trapped in the chains and was restricted to just the wall. Plato’s story shows me to respect life. Enjoy what God gave you instead of taking advantage of it. The prisoners were not allowed to see the outside world. They didn’t know what the sky looked like or what a voice sounded...
Words: 803 - Pages: 4
...neck to glance into mirrors or checking other people’s faces to make sure her own was all right.” However, due to Arnold’s sunglasses Connie is not able to “check” his face in order to see how he is viewing her, therefore leading her to feel insecure. The repetition of shadows utilized by Oates may represent the darker side to the characters within the story. A darker side of Connie may come to light as Oates writes “Connie would rise her eyebrows at these familiar old complaints and look right through her mother, into a shadowy vision of herself as she was right at that moment: she knew she was pretty, and that was everything.” The “shadowy vision” that Connie looks into may be symbolic of a darker, obsessive side of Connie. Although Connie may seem very confident to her family and friends, she may actually be suffering from self-loathing and crimpling internal insecurities. The shadow described around Arnold, however, tells a slightly different story. In fact, in Arnold’s case his eyes are entirely without shadow. This is seen as Oates writes, “He took off the sunglasses and she saw how pale the skin around his eyes was, like holes that were not in shadow but instead in light.” The absence of shadow around Arnold’s eyes may represent that his eyes are the only true window into his true self. According the University of Michigan eyes are “the most important symbolic sensor organ. They can represent clairvoyance, omniscience, and/or a gateway into the soul.” In this...
Words: 1028 - Pages: 5
...It can be said that every story in the collection Dubliners by James Joyce has a tale of its own where “paralysis” is a central theme in all the stories. The idea of “paralysis” can mean a number of different things to different people depending upon their interpretation of a certain text. In general, what “paralysis” does is inhibit a character from doing what they want to do or know they should do, as if there is a kind of shadow in their life, just lurking and haunting them in the darkness. These shadows especially play an important role in two stories from the collection, “The Sisters” and “The Dead”; they act as a sort of imprisonment for the main character. In “The Sisters”, the narrator and main character is a nameless boy. The boy says at the beginning of the story, “Every night as I gazed up at the window I said softly to myself the word paralysis. It had always sounded strangely in my ears…like the name of some maleficent and sinful being. It filled me with fear” (“The Sisters”, 2). From this, the reader sees that the boy does not really know how to respond to the priest’s inevitable death. What kind of relationship exists between the boy and Father Flynn is hard to determine because the reader only sees their relationship through the eyes of the boy. As the reader is introduced to other characters in the story, they start to learn bits of information about the nature of their relationship, but the reader is still somewhat left in the dark. Throughout the story...
Words: 1081 - Pages: 5
...Hello there the angel from my nightmare The shadow in the background of the morgue The unsuspecting victim of darkness in the valley We can live like Jack and Sally if we want Where you can always find me And we'll have Halloween on Christmas And in the night we'll wish this never ends We'll wish this never ends (I miss you I miss you) (I miss you I miss you) Where are you and I'm so sorry I cannot sleep I cannot dream tonight I need somebody and always This sick strange darkness Comes creeping on so haunting every time And as I stared I counted The Webs from all the spiders Catching things and eating their insides Like indecision to call you and hear your voice of treason Will you come home and stop the pain tonight Stop this pain tonight Don't waste your time on me you're already The voice inside my head (I miss you miss you) Don't waste your time on me you're already The voice inside my head (I miss you miss you) Don't waste your time on me you're already The voice inside my head (I miss you miss you) Don't waste your time on me you're already The voice inside my head (I miss you miss you) Don't waste your time on me you're already The voice inside my head (I miss you miss you) Don't waste your time on me you're already The voice inside my head (I miss you miss you) I miss you (miss you miss you) (I miss you miss...
Words: 264 - Pages: 2
...mobile phone said 2:34AM. I decided to listen to some music on my iPod with the hope that I would eventually drift off to sleep. I popped my earphones in my ears and wriggled away to a hip hop tune on the bed. Amidst my wriggling my elbow bumped into what felt like someone standing right next to the bed beside me. I looked up and caught a glimpse of a shadow of a person towering over me. I jolted upright on the bed, awakening my husband at the same time. Perhaps he felt something was up and asked me "What's wrong? What's wrong?" I was unable to reply immediately because my eyes kept scanning the bedroom, seeking out for a shadow or movement. Again my husband asked, "What's wrong love?" "There's someone in our bedroom!" I said out loud. My husband turned on his bedside lamp. Naturally, no one was there. Our bedroom door was closed, and we didn't hear anyone opening the door to go out but I still felt there was a presence in the room. My husband pulled me towards him in a hug "Just pray love." We prayed Our Father and my husband turned off his lamp. After a few minutes, my eyes adjusted to the darkness in the room. Then I saw the shadow again, standing, on my husbands' side of the bed. I screamed out and clung onto my husband. He turned the lamp on again and of course, no one was there. The emotions that was running through me at that time, was somewhat mixed, but I believe I was more scared than anything else. But what scared me the most was what happened next... "Jesus Jesus Jesus...
Words: 543 - Pages: 3
...“Cecil Jacobs is a big wet hen!” I heard a familiar voice yell. I stood up from my chair and stumbled over to the window. “Hey!” I heard another familiar voice yell as I looked over the dark lot scanning for my two kids. The lot was completely pitch dark, but I became used to the dark long ago and I could barely make out an outline of what looked like a life-size walking ham. Why would Scout be dressed as a ham? I wondered to myself. I couldn’t see Jem although I knew it was his voice I had heard. I watched as Scout as Jem approached the big oak tree. Once the kids stumbled under the big old tree, I could make out Jem walking along side Scout talking quietly to her. The kids stopped all of the sudden, and I wondered if something was wrong. They shouldn’t be out here at this time of night. Where was Atticus? The Halloween pageant! I remembered the article I read in the weekly edition of the Maycomb tribune. That must be where they were and why Scout wore a ham as her dress. It must of ended late. “Run, Scout! Run! Run!” I heard Jem yell. At that moment I spotted a man with a ripped plaid shirt on, charging at the kids. My kids, I thought. He’s going to try to hurt them. The man wore a smirk of hate and revenge on his face. I couldn’t let them be hurt. They were all I had after years of being shut up in this old run down house because of my unknown sickness. I just couldn’t stay in my house and let the kids be hurt. I had to help. I grabbed what I needed from the kitchen and...
Words: 1067 - Pages: 5
...that are not necessary. A man spends his whole life fishing in himself for something grand. It’s like a lost lunker, big enough to break all records. (1-2) (Brown) In my opinion the author is stating in our everyday lives we have a routine, searching for our best accomplishments. We are looking for one that is bigger than what we feel is expected of us. Maybe it is one that will surpass everyone’s expectations of us. But he’s only heard rumors, myths, vague promise of wonder. He’s only felt the shadow of something enormous darken his life. Or has he? (3-5) (Brown) We hear praises from others about thing we’ve done or accomplished, but do not believe that our great accomplishment exists. We feel we can do better and often judge ourselves hard; thinking that perhaps someone else has done better. Through all the praises we still feel confused or uncomfortable accepting the praise from others. Maybe it’s the shadow of other fish, greater than his, the shadow of other men’s souls passing over him. (6) (Brown) In the part of the poem, the author is asking us a question. Is it that we are trying to live our life competing against someone else’s accomplishments? Trying to better someone else’s expectation but not sure if we can. Each day he grabs his gear and makes his way to the ocean. At least he’s sure of that, or is he? (7-8) (Brown) Every day we gather our thoughts and think of all we have accomplished. We sit back...
Words: 719 - Pages: 3
