1. Innovations in Modern Banking
Unit 10.3

2. Banking Services Store Money Earn Interest Borrow Loans
Automated Teller Machines
Debit Cards
Stored-Value Cards
Credit Cards
Electronic Banking

3. Bank Deregulation Banking Deregulation Mergers Collapse of 2007-2008
Banks hated the restrictions of Glass-Steagall
Citibank and Travelers merger was illegal, but the Financial Services Act of 1999 (also known as the Citigroup relief act) cleared the way by getting rid of Glass-Steagall
Mergers
Banks went on a merger spree that has now made the largest banks in the US too big to fail
Bank of America
Citigroup
JPMorganChase
Goldman Sachs
Wells Fargo
Morgan Stanley
Collapse of
Role of Banks (BofA, Wells Fargo, Citibank…)
Role of Investment Firms (Hedge Funds, Pensions…)
Role of AIG (Derivatives)
Role of Ratings Agencies (Moody’s, Fitch, S&P)