Risk and Banking

For this assignment, you will write a minimum three-page paper (not including APA title or references pages). In this paper, please address the following questions:

• What are the specific ways banks impact the economy?
• How was the regulatory environment revised?
• Is the regulation effective?
• What risk management standards had to be employed as a result of legislation?
• What are the consequences of failure to meet the standards outlined by regulators?
• Would a firm be prudent to properly manage their level of leverage and liquidity if it were not regulated? Why or why not? What tools can organizations employ to manage these risks?