Thursday, January 12, 2017
Measures taken to Prevent Subprime Financial Crisis Happening Again
To prevent a similar financial crisis happening again, the US Congress enacted the Wall Street Reform and Consumer Protection Act of 2010. The purpose was to bring sanity to Wall Street and bring to bear the consequences of financial poor judgement on organizational leaders. This law brought about the much needed regulation on big institutions that were previously thought as "too big to fail". Now they were required to report to the federal reserve on matters touching on liquidation.
Another measure taken to prevent another crisis were creation of the Consumer Financial Protection Bureau.
Total Quality Management image retrieved from https://www.google.com/search?q=consequences+of+subprime+lending&espv=2&biw=1280&bih=858&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjf6bDVyrzRAhVEJiYKHTy0ADUQ_AUIBygC#tbm=isch&q=preventing+the+subprime+financial+crisis+law&imgrc=XZhSQ__vf12OaM%3A