Citi Bank. FIN 460 - 01

CITI BANK
Name
Institution
Instructor
Date of Submission
CITI BANK
Introduction
In the past wealthy people had no platform to engage in investments and venture into much profitable business opportunities. However, introduction of commercial banking so an increase of savings and consequently led to setting up of more businesses in the US. In the early 80s, these wealthy individuals would only engage with other individuals who promised investment returns to them. The first banks had two functions. They not only provided opportunities to borrow and fund the entrepreneurs who had inadequate money but they also acted as a money saving entity for individuals who were not ready to invest their money due to the high risks involved. The early banking system encouraged business investment that led to economic growth in the US as titled to revolution in finance.
In the United States, banking is not only regulated by the federal system but also the state governments. Banks assets contribute a large percentage of the US economy to tunes of up to 56 percent for only the five largest banks. The regulations on the state and federal level that apply to a particular bank depend on its charter. The regulatory policies and consequent agencies of banking in the US are separate from those of the insurance. The accounts in the United States' banks are insured to prevent the banks from going bankrupt. Other policies are also put in place to cushion these banks and bail them out in the event that they face the bankruptcy threat. Banks that are failing are bought off by the Federal Deposit Insurance Corporation or taken for a short period for administration and sold to the other banks or merged to larger banks. The federal banking policies address a number of issues including, money laundering, terrorism, fraud, information disclosure and money lending. This paper will put focus on one of the largest banks in the United States, Citi Bank.
Historical development...