Financial Fragility, Capital Regulation and Bank Testing Essay

Financial Fragility, Capital Regulation and Bank Testing - Essay Example As the discussion highlights  bank mergers can reduce the cost of operation and increase scope of activities thus enabling them to control market and funding liquidity. This document examines the effects of bank mergers on market and funding liquidity and their interactions during the financial crisis. The activities of the bank influence their capacity to control market and funding liquidity. Investors prefer strong institutions that they perceive as being less risky because they are fairly stable during the periods of the economic downturn.  Ã‚  This paper outlines that liquidity risk is the risk that a particular asset or portfolio may not be exchanged in the market quickly in order to evade a loss, and it results from uncertain liquidity. Liquidity risk could either be due to the market liquidity or funding liquidity. Market liquidity is the condition whereby the assets cannot be traded in the market due to lack of liquidity in the market. The market liquidity can drain sudde nly, interlinked with instability, have cohesion across securities, co-varies with the market, and is dependent on â€Å"flight to quality†. Funding liquidity refers to ease with which traders can obtain funding for assets. The investors require portfolio security with high returns in case the market is illiquid and require return premium for an illiquid security in a situation where the entire market is illiquid. Small banks pose high risk to the investor because they may not be able to acquire funding during the periods of the economic downturn.

Research paper Example | Topics and Well Written Essays - 1250 words - 3

Research Paper Example In the last work by Langston Hughes that is I, too were identified varied themes, symbols and metaphors. This paper intends to unravel the commonality of those themes, symbols and metaphors in the two short stories by the author, which are Father and Son and Cora Unashamed. As was traced in the poem I, too by Langston Hughes, the short story Father and Son by the same writer delineates the atrociousness and brutality of the Jim Crow rules, but in a more detailed and intricate manner. Father and Son is a story about a Georgia white man Colonel Thomas Norwood who keeps a black woman Nora for a mistress and fathers five children by her. The story reveals the psychological and social might of the Jim Crow laws. In the story, Colonel Tom is showed to harbor feelings of constrained affection and liking for his sons from Cora, as is natural for any man. However, his allegiance to the Jim Crow system is evinced to be more doughty and mightier than his commitment to the voice of human feeling s within him. He not only tends to publically deny his children from his black maid Cora, but considers an open profession of affection by his son Brat to be a mark of dishonor and disgrace. As in I, too, in Father and Son, Hughes exposes the absurdity and fickleness of Jim Crow laws, which allow a white man to get into the most intimate of relationships with a black girl and to father sons by her, yet, do not allow one to socially and legally recognize the relationships that such intimacies and acts entail. As in other works of Hughes, the register attributed to the black characters further exposes the bestial and subhuman level to which the blacks character are supposed to stoop in Jim Crow America, replete with invectives like nigger, darkie and yard-nigger. In Father and Son, Hughes elaborately shows the decorum and mannerisms which the black dependants were expected to follow in subservience to Jim Crow norms that he alludes to in I, too. The black slaves owned by Colonel Tom a re never allowed to enter his home from the front door or to roam about in his inner chambers, irrespective of their long service to him or their relationship to him. The blacks were always to approach his home from the backdoor and allowed to gather only in the kitchen. Like a dog, they were expected to maintain a respectable distance from and decorum with their white master. The story also reinforces the social status attributed to black characters in Hughes’ other works. All the black characters are shown to be serving in menial positions. Colonel Tom do tries to be good to his children by extending to them educational and other opportunities and facilities. However, the magnanimity of his concern for his children never dares to cross the boundaries marked by Jim Crow laws. The story also reveals the fear of marginalization of the whites, as in Hughes’ other works. When Brat, the youngest son of Colonel tries to rebel against the constraints of segregation and recla im his relationship with his father, the system comes crashing down on him and his brother. Cora Unashamed is one of the masterpieces of Langston Hughes. Though the writer predominantly repeats the themes, symbols and metaphors in the story with which he deals with in his