As a result of the subprime financial crisis several of the large,free-standing investment banking firms chose to become bank holding companies.This means that they will now be regulated by

Question

Quizplus · Accepted Answer

Becoming a bank holding company means that the firm is now subject to regulation by the Federal Reserve, which is responsible for overseeing and regulating banks and other financial institutions in the United States. The FDIC is primarily responsible for protecting depositors and maintaining stability in the financial system, and although state banking authorities also play a role in regulating banks, they would not necessarily be the primary regulator for large, free-standing investment banks. The Treasury is responsible for managing the government's finances and implementing economic policy, but does not have regulatory authority over banks. Therefore, only choice A (the Federal Reserve) is the correct answer.

As a Result of the Subprime Financial Crisis Several of the Large,free-Standing