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U.S. banks are currently banned from holding equities on their balance sheets. For each alleged effect of the ban listed below, indicate whether it is
U.S. banks are currently banned from holding equities on their balance sheets.
For each alleged effect of the ban listed below, indicate whether it is cited by proponents or opponents of the ban.
Arguments for Banning Banks from Holding Eequities | Arguments Against Banning Banks from Holding Equities | ||
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Shields banks from stock market downturns |
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Lowers the probability of contagion of financial market failures |
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Incentivizes banks to acquire riskier assets to compete with European banks |
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Shifts investors focus to foreign banks |
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