Capital Investment Decisions
Capital Investment Decision
Strayer University
Graduate Accounting Capstone ACC-599
September 28, 2013
Professor: Dr. Mary Johnson
Abstract
The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into legislation in July of 2010, by President Barack Obama, as a result of the financial crisis that began in 2008, which resulted in massive failure of large financial institutions, threatening the financial stability of the U.S., as well as the global economy (Dodd, C. 2012). This report will reference features of this legislation that directly impacted the way financial institutions conduct business, aimed at requirements such as more disclosures to consumers and transparency of their processes when dealing with the public. Additionally the report will also relates other topics related to capital investments that occur on a daily basis in the business environment, with a brief analysis of techniques used during the evaluation process in capital decision making. Capital Investment Decisions
Discuss how the changes in the lending regulatory environment, particularly with the passage of the Dodd-Frank Act, has impacted the bank’s ability to lend money to businesses, for capital projects and acquisitions. The Dodd-Frank Act has undoubtedly had a considerable impact on the way financial institutions carryout their lending practices and other financing services, for many years regulators focused exclusively on protecting the safety and soundness of the financial system, ignoring the implications that their practices had on consumers. The Dodd-Frank Act reshaped this process by drastically transforming the existing regulatory environment, amending the Federal Reserve Act, along with numerous other Federal laws and tightening the supervisory functions, in an attempt to protect the economy of the United States (Mulhern, R. 2011). The creation of the Consumer Financial Protection Bureau (CFPB) whose sole focus is to
Strayer University
Graduate Accounting Capstone ACC-599
September 28, 2013
Professor: Dr. Mary Johnson
Abstract
The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into legislation in July of 2010, by President Barack Obama, as a result of the financial crisis that began in 2008, which resulted in massive failure of large financial institutions, threatening the financial stability of the U.S., as well as the global economy (Dodd, C. 2012). This report will reference features of this legislation that directly impacted the way financial institutions conduct business, aimed at requirements such as more disclosures to consumers and transparency of their processes when dealing with the public. Additionally the report will also relates other topics related to capital investments that occur on a daily basis in the business environment, with a brief analysis of techniques used during the evaluation process in capital decision making. Capital Investment Decisions
Discuss how the changes in the lending regulatory environment, particularly with the passage of the Dodd-Frank Act, has impacted the bank’s ability to lend money to businesses, for capital projects and acquisitions. The Dodd-Frank Act has undoubtedly had a considerable impact on the way financial institutions carryout their lending practices and other financing services, for many years regulators focused exclusively on protecting the safety and soundness of the financial system, ignoring the implications that their practices had on consumers. The Dodd-Frank Act reshaped this process by drastically transforming the existing regulatory environment, amending the Federal Reserve Act, along with numerous other Federal laws and tightening the supervisory functions, in an attempt to protect the economy of the United States (Mulhern, R. 2011). The creation of the Consumer Financial Protection Bureau (CFPB) whose sole focus is to
References: Bensinger, K. (2012). JP Morgan’s Huge Losses Exposes the Risky Sides of Banks. Retrieved on July 24, 2012 from http://articles.latimes.com/2012/may/31/business/la-fi-jpmorgan-bank-20120531 CSBS.org. (2010). TITLE X OF DODD‐FRANK—BUREAU OF CONSUMER FINANCIAL PROTECTION. Retrieved on July 25, 2012 from http://www.csbs.org/legislative/con-issues/Documents/Title%20X%20--%20CSBS%20Staff%20Summary%20 (July%2015%202010).pdf Dodd, C. (2012). Opinion: Why Frank-Dodd is Necessary. Retrieved on July 25, 2012 from http://www.politico.com/news/stories/0712/78819_Page2.html Gitman, L. (2009). Principles of Managerial Finance. (12th Ed.). Upper Saddle River: NJ Pearson Prentice Hall. Mulhern, R. (2011). The Dodd-Frank Act: Its implications for change in the banking industry. Journal of Payments Strategy & Systems, 5(2), 125-13n, 3. Retrieved on July 19, 2012 from https://search-ebscohost-com.libdatab.strayer.edu/login.aspx?direct=true&db Schwartz, N. & Greenberg, J. (2012). JP Morgan’s Trading Loss Is Said to Rise at Least 50%. Retrieved on July 25, 2012 from http://dealbook.nytimes.com/2012/05/16/jpmorgans-trading-loss-is-said-to-rise-at-least-50/