Compare and contrast the glass-steagall act with the Essay

Compare and contrast the glass-steagall act with the gramm-leach-bliley act, also known as the citigroup relief act - Essay Example It removed barriers and obstacles that securities companies, banking companies, and insurance companies had to endure. In this paper, I will seek to compare and contrast the Glass-Steagall Act with the Gramm-Leach-Bliley Act, also known as the Citigroup Relief Act (White 3). To begin with, the Glass-Steagall Act prohibited all commercial banks from taking part in the issuance and flotation of securities. It remained unclear as to why the Congress decided to mandate this divorce but one thing is clear, it made the involvement of commercial banks in securitizing insurmountable burden. This came due to the dichotomy between and among the actual motivation behind Congress’ decision and the ostensible legislative intent. On the other part, enactment of the Gramm-Leach-Bliley Act revolutionized the circumstances since it repealed a section of the Glass-Steagall Act of 1933 whereby it did away with obstacles or barriers present in the market among insurance, securities, and banking companies. In other words, it relived these companies of any barrier that deterred any single firm from acting as a combination of a commercial bank, investment bank, and an insurance company (White 12). Secondly, a study conducted within almost three thousand banks in years between 1856 and 1936 proved that securities were not to blame for most of banks failure or collapse however; they were a particular hazard to banks. More intense studies revealed that the underwritten securities of commercial banks were actually of higher quality as opposed to the prior claim that the affiliate underwritings were of poor quality. The history of Glass-Steagall Act reflects the common notion that the possible underlying cause of the 1929 market crash came about because of using bank credit in excess to speculate stock market. Quiet a number o econometrics assert that what prompted the

EBays Globalization Strategy Case Study Example | Topics and Well Written Essays - 750 words

EBays Globalization Strategy - Case Study Example The researcher states that the current economic downfall and the uncooperative financial trends of the dollar are other major factors that have worsened the existing scenario. eBay has now decided to revamp the entire website and measures to provide buyers more protections, sellers with loyalty programs are on the anvil. The core competency of eBay is its online auctions. The online auction marketplace model was the main factor that spelled success for eBay over the years. As the company does not think and act like a retailer, their initial strategy of not dealing in any way with the fixed-price market suited their core competency to a very great extent. Now, with its foray into this unvisited and untapped segment of the market, eBay is facing the dire consequences of not sticking to its original plan. This year eBay reported a revenue decline of around 16%, which it’s the first of its kind for this e-commerce company. An analyst at New York-based Sanford C. Bernstein, Lindsay says â€Å"Its a sign that eBay hasn't been able to buck the trend of poor consumer turnout during the holiday season. Unless they can get the core marketplaces business to turn around, and a fair bit of that will depend on the economy, then they're going to have to look at some more strategic measures.† The business model of eBay initially was to mainly help people trade practically anything on earth and conduct commerce through the Internet on a global basis. â€Å"A weakness in consumer spending and strength in the U. S dollar has reduced the value of overseas sales.† EBay’s main aim earlier was to make the process of online buying and selling fun using the system of the auction. Their main focus was using umpteen entrepreneurial strategies and business skills to create smart and efficient tools for the website and use a winning strategy to become the most popular and well-known e-commerce company and the best Internet retailer of all time.