I need a reply to the following discussion posts. Needs to have an in-text citation and should be approximately 2 paragraphs with an open-ended question to my fellow student. This does not need a title page, and one reference is sufficient. Please make sure there is an open-ended question at the end. Please make sure sentences are short but thorough.

Question: The list of victims who lost money in Bernard Madoff's alleged $50 billion Ponzi scheme is like a who's who of the financially savvy. Madoff produced consistently better than average returns and he allegedly kept multiple sets of books, generated his own statements, and hid his activities from regulators for many years. How did Madoff manage to keep his scheme going without notice? What was the SEC’s overall responsibility? Provide an example of another financial scam(s) other than Madoff’s and Dreier’s that have occurred since? How
were they similar/different in nature?

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Reply to Equille!

The fact that Bernie was able to hide in plain sight for decades really bothers me. And the fact that Bernie was able to get over with the SEC for so long boils me even more. One thing I got in my readings on Bernie this week was that he was well-liked and respected in the financial community. It is even said that he told the SEC no when they asked of his misdoings and they did not bother him again because of his answer.

My question to you is this: How much do you think Bernie's reputation helped him stay out of hot water?

Question: The purpose of this discussion question is to gain a historical perspective of the evolution of laws and regulations. Evaluate the key elements of the Gramm-Leach-Bliley Act of 1999. Of the seven provisions (Title I – Title VII below):

Title I – Facilitating Affiliation Among Banks, Securities Firms, and Insurance Companies
Title II – Functional Regulation
Title III – Insurance
Title IV – Unitary Savings and Loan Holding Companies
Title V – Privacy
Title VI – Federal Home Loan Bank System Modernization
Title VII – Other Provisions

1. Which do you think are most important given the climate of the banking industry today?

2. Should any of the key elements be modified today to incorporate newer and changing regulations such as, the Dodd-Frank Wall Street Reform and Consumer Protection Act?

3. Which provisions, if any, should be revised or modified as a result of the current conditions in the banking and financial markets?

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Reply to Kassandra!

The climate of today’s banking industry can be described as uneasy on the consumer’s end given the scandals that have occurred over the past decade. Given this, I believe the most important titles in the Gramm-Leach-Bliley Act of 1999 are Title II: Functional Regulation and Title V: Privacy. The presence of hybrid products – part commercial and investment banking and part insurance – that caused the provision to be necessary in the first place (Leach, 2008) indicates a large need for a form of checks and balances. Title II achieves this because the SEC is obligated to “consult and coordinate comments with the appropriate Federal banking agency before taking any action” (U., n.d., p. 5). Title II can also benefit from being modified to incorporate portions of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Dodd-Frank Wall Street Reform and Consumer Protection Act ensures that consumers are receiving accurate information and are protected from deceptive practices in regards to financial products (U.S. Senate, n.d.). This would be beneficial to include in Title II: Functional Regulation because as comments are being consulted through the SEC and Federal banking agencies, the integrity of the information being discussed and exchanged is lawfully protected to be accurate.

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Leach, J. A. (2008). Regulatory reform: Did Gramm-Leach-Bliley contribute to crisis? Northwestern Financial Review, 193(20), 8-9, 28.

U. (n.d.). [PDF]. SEC

U.S. Senate (n.d.). Brief summary of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Retrieved from http://banking.senate.gov/public/_files/070110_Dod… comprehensive_summary_Final.pdf