Banks+and+Banking-Period+3

For your group's assigned topic below, read one or more of the articles provided, then use the Times Topics pages to find more articles that address this issue and how it has played out in recent news. Work to both understand the larger issues as well as to identify a "microcosm" of the issue—such as a person involved who people can relate to or focus on, like Bernie Madoff, or a small part of a larger problem, like the A.I.G. bonuses—that you can use to "sell" the issue to the public.
 * 1) **FISHING FOR RED HERRINGS**

· Times Topics: Banks and Banking []
 * Issue: BANKS AND BANKING**

· Selected Related Articles: "Off with the Bankers" [] "Regulators Worldwide Scrutinize Bankers’ Pay" [] "Forget Britney; Media Outrage Hits Big Spenders" []

**ISSUE BACKGROUND**

 * ====A bank is a financial institution that accepts deposits and channels those deposits into lending activities. It connects customers with capital deficits to customers with capital surpluses.====
 * ====Financial crisis of 2008 was triggered by a series of valuation and liquidity problems in the U.S. banking systems due to the bursting of the housing bubble.====
 * ====Governments and central banks responded with the expansion of monetary policies and institutional bailouts.====
 * ====According to the Levin-Coburn Report, the crisis was not a natural disaster but the result of high-risk actions of Wall Street investment banks.====
 * ====Many people accuse Wall Street officials for the economic crisis. The top 1% who owned 34.6% of the nation's wealth in 2007 increased their proportional share to over 37.1% by 2009. Resulted in a wider gap between the rich and the poor.====

**POTENTIAL MICROCOSMS**
> =====** Another trial **** American regulators charge another bigwig with insider trading **===== > =====[|www.economist.com/node/21532280]===== > =====** Insider Trading: Tipping the scales **===== > =====** The fight against crooked trading gathers pace **===== > =====These two articles discuss the recent SEC prosecution of the insider trading conspiracy involving Rajat Gupta and Raj Rajaratnam. This conspiracy, though in itself may not have much of an impact on the status of our economy or an effect on peoples lives, illustrates the extreme greed of Wall Street executives and brokers. This is one of the larger issues within the economy and banking world that we are currently dealing with.=====
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> > ==3 Accused of Theft Using a Device at A.T.M.’s== > This article discusses one case of theft, where three men were accused of using hidden cameras and other devices at Chase ATMs to steal over a quarter of a million dollars. This type of story is flashy and is a very good attention-getter. Many people would be interested in how these men managed to steal so much money, and how they were caught. This article however is a very small issue within the economy and our banking industry. It only touches on a very small problem that does not affect many people and that will not have any substantial, lasting impact. It does not cover or relate to any of the more major issues, such as the financial crisis or government regulation of banking and the economy.
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As Big Banks Raise Fees, You Have Options
This article discusses how banks announced that they are adding/raising monthly fees. Banks, such as Chase, are stating that they do not want to raise the fees, but the article suggests otherwise. The banks are fully aware that customers will not leave and change banks, due to the fact that changing checking accounts is a hassle.


 * ====Executives like Madoff and Bank of America CEO, Kenneth Lewis are living the billionaire lifestyles even during the tough economic times.====
 * ====Northern Trust didn't need money from the Government Bailout but took the money anyway. As a result they use the excess of money that they had to put on a concert for its employees.====
 * ====Bank of America recieved $45 billion in bailout money. With some of the money they increased their private jet fleet to 9 planes.====
 * ====Kenneth Lewis also takes a private Gulstream G5 Jet that is worth around $50 million. It costs about $5,000 to operate for an hour when the average plane ticket is 4====

=**Regulators Worldwide Scrutinize Bankers’ Pay"**= [] ====In this aritcle they talk about how they want to add more powers to securities and exchange commission. The wanted to regulate the executive compensation sectore. They feel that the bankers are getting paid at a high level and that there bouns keep coming. There average salery is pretty standard but when it comes to the bouns and the amount that is awarded in them it tips the scale. The commission exchange says that there bouns are about 3.2 billion out of 7.7 billiion grossed income. Even when the ecomomy is down, loans don't get paid, and debt is at a all time high, the banker still make there bounses. But even though they say they want to stop this from happening its an chance it will still happen.====