Club Activities………………………………………………...…..………….……34

to customers that included small businesses. Their operations were scaled back and the unemployment rate rose.

This Financial Crisis ultimately led to the Dodd-Frank Reform Act, 2010, which proposed stricter rules for banks by limiting the risky activities they could engage in. The Volcker Rule restricts a bank from trading for its own account and investing in hedge or private equity funds. The act mandates increased transparency in derivative markets by standardizing the trade of CDS contracts and attempts to unify the number of financial regulators clarifying their lines of regulatory authority. The Office of Credit Ratings was created to regulate the credit rating agencies. Though over a decade old now, the crisis of 2008 is still fresh in the minds of investors and institutions. The entire series of events can act as an important case study for aspiring financiers for the crisis accurately depicted the delicate relation that exists between financial systems and the economy.