Case Scenario:
You have recently obtained a new position as a manager of an international accounting firm, Smith, Lindsey, and Lueders, CPA (SLL). SLL is primarily an auditing firm. Part of your duties will be to analyze the current state of accounting with an emphasis on the international environment. An additional responsibility is that you are in charge of training the new hires for the year. The advantage of having these two responsibilities is that you can use the information gained in your accounting analysis to train your new hires.
Problem:
The new hires are interested in getting your thoughts on the collapse of the financial system in the United States in 2008. They ask about your understanding of American financial markets. You take a little time to research before you explain the following:
> Compare depository institutions' regulations and depository requirements to those of financial institutions.
> Discuss whether you believe these regulations and requirements are adequate for depository institutions and if financial markets need regulation.