2006-10-04 04:28:35 · 5 answers · asked by me__mine 2 in Business & Finance ➔ Renting & Real Estate
So that investors and consumers have the reasonable expectation that their money will be handled properly and according to the policies set forth. Further, it gives investors and consumers the right to sue, and the government the right to prosecute when a financial institution fails in its fiduciary responsiblity.
2006-10-04 04:38:12 · answer #1 · answered by mzJakes 7 · 0⤊ 0⤋
So that they may not take advantage of consummers that do not fully understand the banking system.I Canada deposits are insured for up to 25,000.00,thus if the bank fails then the government will pay that amount.U.S.A. banks are privately owned and if not regulated they could cheat you out of thousands of dollars if regulations were not there to protect you ,that is why they must keep a certain percentage of there money in liquid assets in case someone makes a large unforseen withdrawl(they borrow the money form the federal reserve)
2006-10-04 11:41:35 · answer #2 · answered by michael m 2 · 0⤊ 0⤋
In the 1920's they were doing a lot of risky stuff which led to the failure of many financial institutions.
2006-10-04 11:33:01 · answer #3 · answered by jimmywalls1982 3 · 0⤊ 0⤋
I would give you the links that the US government has provided to the public answering your question but yahoo answers says that providing links with the proper answers to questions is spamming and they rather just have written answers from sources that are not qualified to provide such answers
2006-10-04 12:21:29 · answer #4 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
THINK!
Why WOULD they be regulated?
Could it possibly be for the protection of people like you and me?
2006-10-04 11:39:14 · answer #5 · answered by paleblueshoe 4 · 0⤊ 0⤋