Problem
1. After the developing country debt crisis began in 1982 (see the next chapter), U.S. bank regulators imposed tighter supervisory restrictions on the lending policies of American banks and their subsidiaries. Over the 1980s, the share of U.S. banks in London banking activity declined. Can you suggest a connection between these two developments?
2. Why might growing securitization make it harder for bank supervisors to keep track of risks to the financial system?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.