Political Parties in American Government Not for the People - Free Essay Example

Sample details Pages: 2 Words: 618 Downloads: 7 Date added: 2019/07/29 Category Politics Essay Level High school Tags: Political Parties Essay Did you like this example? According to President Abraham Lincoln the government was made by the people and for the people. That being said, in my opinion democracy is not about policy, it is about process. It is about how you achieve the results of the policies that they want to implement on the people. Don’t waste time! Our writers will create an original "Political Parties in American Government Not for the People" essay for you Create order Therefore political parties are seen by many as irrelevant to the political and governmental system because of a myth. This myth is known as the myth of party irrelevance, which has created mixed emotions within American citizens for good reasons about how they feel and see political parties today. Love them or hate them as of now the United States has a two party system which are Republicans and Democrats. These parties help the political and governmental systems to function but are not essential because there are alternative processes for a better political system. These parties are mainly utilized to keep order in the political world and control functions of the federal government but at what cost? Many believe that these parties have too much power than they should. Tough the objectives of these parties are the same there are many differences on the way they both think. This results in parties focusing on what is best for the parties and not for the people. In the world of polit ics power makes the world go round and round. But just how much power is bad? I get that for a successful democracy there must be power to create authority for there to even be a government. According to Edwards (2011) Patricians and party activist of these two parties control the outcomes of mostly everything within the political system not the votes of the people. Party activists control access to the ballot through closed party primaries and conventions; partisan leaders design congressional districts. Once elected to Congress, our representatives are divided into warring camps. Partisans decide what bills to take up, what witnesses to hear, what amendments to allow (Edwards, 2011). In other words political parties are so powerful that they found a way to out rule their votes over the peoples votes. This is done through political laws known as the sore loser laws that come in to play in the November elections. A candidate who losses during a party primary or convention is denied a place on the November ballot because parties activist have the ability to deny their endorsement to any candidate they see as a target or simply not like. By parties having so much power to be able to do this is just unreal and chaotic. Even if the majority of the peoples vote preferred the candidates that are eliminated those people that voted simply lost their opportunity to vote. According to Zuckerman (2014) by allowing partisan leaders to design the congressional districts, that puts the candidates that represent the rich districts on top and the candidates that represent the poor districts at the bottom. Edwards (2012) states that federal government also decides when to declare war establish tax policies, create federal programs, how much money and resources to spend on them, approve peace treaties, who will sit at the Supreme Court. These are all congressional powers that the people cannot interfere with. One has to remember that wealth in politics can get you a long way just like president Trump. For the Republicans and Democrat parties, it seems that power is their main priority and that just leads to a battle for power putting the needs of the people aside. The reality of the political system today is that the people are not the drivers no more. According to Edwards (2012) people have been limited to only being able to elect members of the senate and house representatives.

The Ambitious Marc Antony in Julius Caesar - 996 Words

The Ambitious Marc Antony in Julius Caesar nbsp; The tragic and untimely death of Julius Caesar, a condemned Roman tyrant, triggered William Shakespeares creativity. In his play Julius Caesar Shakespeare writes of the treacherous conspirators, Marcus Brutus and Caius Cassius, and their plans to assassinate their Roman leader, Julius Caesar. The story continues to explain how Caesars loyal friend, Marc Antony, helps avenge the brutal murder. After Antony receives soldiers to fight his battle, his character begins to change. Thenbsp; fair and faithful Marc Antony transforms to a darker and more deceitful character. Marc Antony is not suitable to rule Rome because he holds a grand desire of great power, his conceit†¦show more content†¦In Act Three Marcus Brutus changes the peoples opinion of the death of Caesar instantly. He convinces them that the assassination should not be considered evil, but seen as to the only way to survive while remaining free. The citizens of Rome trust and respect Brutus and believe him. Then Marc Antony convinces the people to come to a different conclusion than that portrayed by Brutus and his honorable men. The crowd believes Antony that the conspirators committed this crime through jealousy, greed and the desire to limit Julius Caesars growing authority. At first Marc Antony only plants a minor idea in the publics mind, allowing them to think about and discuss the new information presented to them. This method initiates the contemplation of serious issues for the crowd of citizens who need no more than this to come to their own opinion concerning what took place (III, 2, 62-106). Marc Antony then stirs his audience with emotions every person in Rome can relate to, focusing on guilt and anger. These passions intertwine, for when the crowd begins to feel guilty, they also start to become enraged. Marc Antony creates a dangerous situation with his riled audience and the possession of information that sets them over the edge into being an unforgiving m ob (III, 2, 107-259). Having a serious effect on an audience is important when trying to be understood fully, however revenge is a dangerous topic especially when beingShow MoreRelatedWilliam Shakespeare s Julius Caesar 884 Words   |  4 PagesGustav Berner Mrs. Hillard Honors English 10 - F 15 January 2015 Julius Caesar Discussion 1.) Brutus’ trust in others and his love of Rome are his greatest faults. His tragic flaw is the trust he places in others. Brutus is easily swayed to trust Cassius when he plots to kill Caesar. Cassius uses his cunning to trick Brutus into believing Caesar is ambitious and that he is killing Caesar for the good of Rome. Cassius says to Brutus, â€Å"Why, man, he doth bestride the narrow world like a Colossus, andRead MoreEssay on Marc Antony’s Funeral Oration1470 Words   |  6 PagesIn William Shakespeare’s Julius Caesar, Mark Antony pleads with his â€Å"Friends, Romans (and) countrymen† to lend him their ears in an effort to exonerate Caesar from false charges laid against him. The three main conspirators in Caesar’s murder, Brutus, Casca and Cassius portrayed Caesar as an ambitious tyrant to the Roman people. After Caesar was unjustly killed by his friends and comrades, the crowd was persuaded to believe that his death was necessary for the good of the republic. However, Antony’sRead More Julius Caesar Essay: Marc Antony’s Power of Persuasion1385 Words   |  6 PagesMarc Antonys Power of Persuasion in Julius Caesar      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In William Shakespeares Julius Caesar, although Marc Antony is allowed to make a speech at Caesars funeral, he must not speak ill of either the conspirators or Caesar.   Antony was infuriated with Caesars assassination, and wants to seek revenge on his killers as well as gain power for himself in Romes government.   He must persuade the crowd that has gathered that Caesars murder was unjust, and turn them against Brutus and CassiusRead MoreMarcus Brutus Vs Mark Antony s Funeral Speech Essay1135 Words   |  5 PagesKayla Marie Davis English II / 4th Block October 27, 2015 Marcus Brutus’ vs. Mark Antony’s Funeral Speech At the funeral of Julius Caesar two characters make speeches to the plebeian mob, Brutus and Marc Antony. Shakespeare shows us the personalities of the two orators and gives one an advantage over the other. Marc Antony has an advantage over Brutus because he speaks after Brutus and he has Caesar’s body. He also interrupts Brutus’ speech. He uses a range of rhetorical devices to manipulateRead MoreExamples Of Envy In Julius Caesar838 Words   |  4 Pagesplay Julius Caesar written by legendary playwright, William Shakespeare. Brutus and Cassius, Julius Caesars good friends are envious of the love Casaer is shown by the romans and they are willing to throw aside friendship and loyalty because of envy which propels them into the action of killing Caesar for power and praise. Envy is easy and almost always evident in the hunt for power in Julius Caesar, this is evident in Brutus’s motives for killing Caesar, Cassius motives for killing Caesar and AntonysRead MoreEss ay on The History Behind Shakespeares Julius Caesar740 Words   |  3 Pagesreplaced a monarchy. For this reason Caesar had been murdered; he was thought to have become too powerful. He was pushing for a dictatorship. Some members of the senate had stepped in and prevented his absolute power. This is just one of the reasons why Caesar would not be the best ruler of Rome; he had been too power-hungry. Antony had been just as bad as Caesar. He was his right-hand man and knew what Caesar had been up to at all times. When Caesar had died, he knew the first thing he wouldRead MoreMarcus Antonys Speech Analysis1063 Words   |  5 PagesJason H. Chang Counteracting the Opposition Julius Caesar was probably one of the most prominent figures in Roman history, known for his strong willed nature and commanding presence. In 44 BCE, Caesar was voted in to be Dictator perpetuo (often mistranslated as dictator for life).Worried that Caesar was becoming too powerful, several Roman senators including Brutus (a close friend of Caesar’s) assassinated Caesar while Caesar himself was by tradition, unarmed and defenseless. Following theRead MoreJulius Caesar: Beware the Ides of March1017 Words   |  5 Pagesinfluential senate is easily threatened by one man; Julius Caesar. To the senators Caesar is the catalyst for the downfall of a Republic they had worked so hard to create and protect. The playwright William Shakespeare dives into this world of betrayal and ambition with his play The Tragedy of Julius Caesar. Using his voice as a writer he takes the audience into Rome and lets them experience each riveting moment of Caesar’s fall. The play shows that C aesar is not the cause of Rome’s eventual downfallRead MoreWhy was Cleopatra Famous?1282 Words   |  6 Pagesin Syria and situated Cleopatra began constructing an army. She knew that an army alone wouldn’t get her power back. Cleopatra would need some outside help too to get the job done. She needed a powerful ally and Julius Caesar was just that person. She reached out many times to seek Julius Caesar’s support. After many failed attempts at getting his support he finally came through and agreed to help Cleopatra restore her power. This was only after she allegedly snuck into his palace wrapped in a rugRead MoreRhetoric in Julius Caesar790 Words   |  4 PagesShakespeare’s Julius Caesar, rhetoric is exactly what Brutus and Mark Antony used to duke it out and to get their point across about Caesar’s death to the people of Rome. Seeking to gain their support and change their minds based on their rhetorical way with words. Let’s get it on! â€Å"If then that friend demand why Brutus rose against Caesar, this is my answer: not that I loved Caesar less, but that I loved Rome more.† (3.2/ 19) Brutus tries to tell the people that he executed Caesar for their own

Part Five Chapter XI Free Essays

XI Howard had told Shirley that he did not feel well, that he thought he had better stay in bed and rest, and that the Copper Kettle could run without him for an afternoon. ‘I’ll call Mo,’ he said. ‘No, I’ll call her,’ said Shirley sharply. We will write a custom essay sample on Part Five Chapter XI or any similar topic only for you Order Now As she closed the bedroom door on him, Shirley thought, He’s using his heart. He had said, ‘Don’t be silly, Shirl’, and then, ‘It’s rubbish, bloody rubbish’, and she had not pressed him. Years of genteel avoidance of grisly topics (Shirley had been literally struck dumb when twenty-three-year-old Patricia had said: ‘I’m gay, Mum.’) seemed to have muzzled something inside her. The doorbell rang. Lexie said, ‘Dad told me to come round here. He and Mum have got something to do. Where’s Grandad?’ ‘In bed,’ said Shirley. ‘He overdid it a bit last night.’ ‘It was a good party, wasn’t it?’ said Lexie. ‘Yes, lovely,’ said Shirley, with a tempest building inside her. After a while, her granddaughter’s prattling wore Shirley down. ‘Let’s have lunch at the cafe,’ she suggested. ‘Howard,’ she called through the closed bedroom door, ‘I’m taking Lexie for lunch at the Copper Kettle.’ He sounded worried, and she was glad. She was not afraid of Maureen. She would look Maureen right in the face †¦ But it occurred to Shirley, as she walked, that Howard might have telephoned Maureen the moment she had left the bungalow. She was so stupid †¦ somehow, she had thought that, in calling Maureen herself about Howard’s illness, she had stopped them communicating †¦ she was forgetting †¦ The familiar, well-loved streets seemed different, strange. She had taken a regular inventory of the window she presented to this lovely little world: wife and mother, hospital volunteer, secretary to the Parish Council, First Citizeness; and Pagford had been her mirror, reflecting, in its polite respect, her value and her worth. But the Ghost had taken a rubber stamp and smeared across the pristine surface of her life a revelation that would nullify it all: ‘her husband was sleeping with his business partner, and she never knew †¦Ã¢â‚¬â„¢ It would be all that anyone said, when she was mentioned; all that they ever remembered about her. She pushed open the door of the cafe; the bell tinkled, and Lexie said, ‘There’s Peanut Price.’ ‘Howard all right?’ croaked Maureen. ‘Just tired,’ said Shirley, moving smoothly to a table and sitting down, her heart beating so fast that she wondered whether she might have a coronary herself. ‘Tell him neither of the girls has turned up,’ said Maureen crossly, lingering by their table, ‘and neither of them bothered to call in either. It’s lucky we’re not busy.’ Lexie went to the counter to talk to Andrew, who had been put on waiter duty. Conscious of her unusual solitude, as she sat alone at the table, Shirley remembered Mary Fairbrother, erect and gaunt at Barry’s funeral, widowhood draped around her like a queen’s train; the pity, the admiration. In losing her husband, Mary had become the silent passive recipient of admiration, whereas she, shackled to a man who had betrayed her, was cloaked in grubbiness, a target of derision †¦ (Long ago, in Yarvil, men had subjected Shirley to smutty jokes because of her mother’s reputation, even though she, Shirley, had been as pure as it was possible to be.) ‘Grandad’s feeling ill,’ Lexie was telling Andrew. ‘What’s in those cakes?’ He bent down behind the counter, hiding his red face. I snogged your mum. Andrew had almost skived off work. He had been afraid that Howard might sack him on the spot for kissing his daughter-in-law, and was downright terrified that Miles Mollison might storm in, looking for him. At the same time, he was not so naive that he did not know that Samantha, who must, he thought ruthlessly, be well over forty, would figure as the villain of the piece. His defence was simple. ‘She was pissed and she grabbed me.’ There was a tiny glimmer of pride in his embarrassment. He had been anxious to see Gaia; he wanted to tell her that a grown woman had pounced on him. He had hoped that they might laugh about it, the way that they laughed about Maureen, but that she might be secretly impressed; and also that in the course of laughing, he might find out exactly what she had done with Fats; how far she had let him go. He was prepared to forgive her. She had been pissed too. But she had not turned up. He went to fetch a napkin for Lexie and almost collided with his boss’s wife, who was standing behind the counter, holding his EpiPen. ‘Howard wanted me to check something,’ Shirley told him. ‘And this needle shouldn’t be kept in here. I’ll put it in the back.’ How to cite Part Five Chapter XI, Essay examples

After the Ratification of the Declaration of Independence free essay sample

After the ratification of the Declaration of Independence, establishing the united colonies as Free and Independent States, the Continental Congress set to work on the task of drawing up a document that would provide a legal framework for that Union, and which would be enforceable as the law of the new land. The Articles were written during the early part of the American Revolution by a committee of the Second Continental Congress of the now independent thirteen sovereign states. The head of the committee, John Dickinson, who had refused to sign he Declaration of Independence, nevertheless adhering to the will of the majority of the members of the Continental Congress, presented a report on the proposed articles to the Congress on July 12, 1776, eight days after the signing of the Declaration of Independence. Dickinson initially proposed a strong central government, with control over the western lands, equal representation for the states, and the power to levy taxes. We will write a custom essay sample on After the Ratification of the Declaration of Independence or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Because of their experience with Great Britain, the 13 states feared a powerful central government. Consequently, they changed Dickinsons proposed articles rastically before they sent them to all the states for ratification in November 1777. The Continental Congress had been careful to give the states as much independence as possible. The Articles deliberately established a confederation of sovereign states, carefully specifying the limited functions of the federal government. Despite these precautions, several years passed before all the states ratified the articles. The delay resulted from preoccupation with the revolution and from disagreements among the states. These disagreements included quarrels over boundary lines, conflicting ecisions by state courts, differing tariff laws, and trade restrictions between states. The small states wanted equal representation with the large states in Congress, and the large states were afraid they would have to pay an excessive amount of money to support the federal government. In addition, the states disagreed over control of the western territories. The states with no frontier borders wanted the government to control the sale of these territories so that all the states profited. On the other hand, the states bordering the frontier wanted to control as much land as they could. Eventually the states agreed to give control of all western lands to the federal government, paving the way for final ratification of the articles on March 1, 1781, Just seven and a half months before the surrender of Lord Cornwallis and his British Army at Yorktown, October 19, 1781, the victory ended fighting in the War of Independence and virtually assured success to the American cause. Almost the entire war for five long years had been prosecuted by the members of the Second Continental Congress as representatives of a loose federation of states with no resources and reputations. Under the Articles, on paper, the Congress had power to regulate foreign affairs, war, and the postal service and to appoint military officers, control Indian affairs, borrow money, determine the value of coin, and issue bills of credit. In reality, however, the Articles gave the Congress no power to enforce its requests to the states for money or troops, and by the end of 1786 governmental effectiveness had broken down. Nevertheless, some solid accomplishments had been achieved: certain state claims to western lands were settled, and the Northwest Ordinance of 1787 established the undamental pattern of evolving government in the territories north of the Ohio River. Equally important, the Confederation provided the new nation with instructive experience in self-government under a written document. In revealing their own weaknesses, the Articles paved the way for the Constitutional Convention of 1787 and the present form of U. S. government. The Articles were in force from March 1, 1781, to March 4, 1789, when the present Constitution of the United States went into effect. During those years the 13 states were struggling to achieve their independent status, and the Articles of Confederation stood them in good stead in the process and exercise of learning self- government. The articles created a loose confederation of independent states that gave limited powers to a central government. The national government would consist of a single house of Congress, where each state would have one vote. Congress had the power to set up a postal department, to estimate the costs of the government and request donations from the states, to raise armed forces, and to control the development of the western territories. With the consent of nine of the thirteen states, Congress ould also coin, borrow, or appropriate money as well as declare war and enter into treaties and alliances with foreign nations. There was no independent executive and no veto of legislation. Judicial proceedings in each state were to be honored by all other states. The federal government had no judicial branch, and the only Judicial authority Congress had was the power to arbitrate disputes between states. Congress was denied the power to levy taxes; the new federal government was financed by donations from the states based on the value of each states lands. Any amendment to the articles required the unanimous approval of all 13 states. In attempting to limit the power of the central government, the Second Continental Congress created one without sufficient power to govern effectively, which led to serious national and international problems. The greatest weakness of the federal government under the Articles of Confederation was its inability to regulate trade and levy taxes. Sometimes the states refused to give the government the money it interstate commerce. The government could not pay off the debts it had incurred uring the revolution, including paying soldiers who had fought in the war and citizens who had provided supplies to the cause. Congress could not pass needed measures because they lacked the nine-state majority required to become laws. The states largely ignored Congress, which was powerless to enforce cooperation, and it was therefore unable to carry out its duties. After the Colonial victory in the Revolutionary War, it became obvious to the Founding Fathers that the original attempt would not be equal to the task of providing the equitable law which they sought. Congress could not force the states to adhere to the terms of the Treaty of Paris of 1783 ending the American Revolution, which was humiliating to the new government, especially when some states started their own negotiations with foreign countries. In addition, the new nation was unable to defend its borders from British and Spanish encroachment because it could not pay for an army when the states would not contribute the necessary funds. Leaders like Alexander Hamilton of New York and James Madison of Virginia criticized the limits placed on the central government, and General George Washington is said o have complained that the federation was little more than a shadow without substance. On February 21, 1787, Congress called for a Constitutional Convention to be held in May to revise the articles. Between May and September, the convention wrote the present Constitution for the United States, which retained some of the features of the Articles of Confederation but gave considerably more power to the federal government. The new Constitution provided for executive and Judicial branches of government, lacking in the Articles, and allowed the government to tax its citizens.

Different attitudes to women in Of Mice and Men Essay Example For Students

Different attitudes to women in Of Mice and Men Essay In this essay I will analyse how Steinbeck explores different attitudes to women in the novel â€Å"Of Mice and Men†. I will start by looking at the historical and social context, then I will show how the writer presents women in his work, and finally, I will present and analyse the male characters who have a defined opinion about women and explore their attitude. â€Å"Of Mice and Men† is set in the 1930s during the Great Depression, a period of economic recession that resulted in a huge separation between social classes. Because of mass unemployment, many workers had to become ranch hands moving from place to place in search for work. Steinbeck sets his novel on a ranch near Salinas, California. He was personally familiar with ranch life as he was born in the Salinas Valley and worked on a farm himself. It is possible that some characters within the novel to be inspired from his experience. Steinbeck has made the ranch a micro representation of the society of that time. This contains all the elements of the 1930s society: a male environment with a well established hierarchy on the farm, a single female character and a few other women about who we learned through the men. There were three stereotypes of women in the 1930s: the obedient wife and mother, the actress and the prostitute. The writer reveals all these stereotypes of women through his female characters in his novel. The 1930s’ wife and mother stereotype is personified through four different characters: Curley’s wife the promiscuous wife, George’s girl the perfect wife, Aunt Clara the good mother and Curley’s wife’s mother the controlling mother. Curley’s wife, the only female character that plays a real role in the novel, is the perfect example of the early 20th century wife. Steinbeck shows her as having limited roles on the ranch and being Curley’s possession. She has not given a name. She is known as â€Å"Curley’s wife† being presented as belonging to her husband without having an identity on her own. During the Great Depression, husbands treated their wives with little respect and women’s main role was to cook, clean the house and raise the children. Curley’s wife wears a â€Å"cotton house dress† and her hair is lung in â€Å"little rolled clusters, like sausages† (page 34). This suggests that her place is in the kitchen, not in the bunkhouse where she bursts frequently. Anyway, she is never seen outdoor only in the bunkhouse and in the barn.

Rite Aid Corporation

During the 2010s, Rite Aid Corporation, as one of the leading pharmacy retailers in the USA, suffers from the significant economic pressure and intensified competition within the industry. The observed financial losses of the company support the idea that Rite Aid Corporation needs the revision of the current managerial and economic strategies implemented and followed in the company.Advertising We will write a custom case study sample on Rite Aid Corporation specifically for you for only $16.05 $11/page Learn More Today, the company has to compete with such giants of the industry as Walgreens Corporation and CVS Caremark Corporation. However, the financial reports provided by Rite Aid Corporation state that the company needs to cope with the debts and to improve the work of run-down stores to change the situation for better and to focus on the effective strategic management (Hitt, Ireland, and Hoskisson). That is why, it is essential to identify the prob lems and challenges experienced by the company which prevent it from concentrating on the competitive advantage and from creating value within the competitive industry, and it is necessary to analyze the alternatives to propose the plan of the further actions. The economic activities and profitability of Rite Aid Corporation are characterized by significant unmanageable debts and underperforming stores which organization and management are not capable to attract the variety of customers typical for the industry. Thus, the economic and financial losses associated with the performance of run-down stores are the main problem of Rite Aid Corporation. The next connected problem is the intensive competition within the industry, which cannot be won until Rite Aid Corporation solves its financial and strategic issues. The associated problems or challenges to influence the development of the company negatively are the shortage of professionals characteristic for the industry in general and t he decrease in number of less expensive generics which can contribute to improving the retailer’s economic situation. The next global problem which influences Rite Aid Corporation directly is the trends to change retailing pharmacy with the other services such as mail-order pharmacies (Hitt, Ireland, and Hoskisson).Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Thus, the existing alternatives to cope with the problems in relation to the current industry tendencies are the expansion of the services to involve the mail-order pharmacy functions and sales according to the specific Internet-based drug prescription services. Furthermore, it is essential to focus on in-store clinic market as the potential for development. While orienting to the mail-order pharmacy functions, Rite Aid Corporation can provide customers with convenient and cost-saving services. The pros of the alternati ve are in possibilities to refer to the experience of CVS Caremark Corporation. The focus on the Internet-based drug prescription services is advantageous because of expanding the company’s frames, but this shift can be too challenging. The in-store clinic market is competitive because of the presence of Walgreens Corporation, but it provides the space for the expansion. From this point, the proposed actions should be based on orienting to the mail-order pharmacy functions because of the apparent profitability of the sphere, and this action can contribute to overcoming the experienced financial losses. The company can become less dependent on the industry’s development while expanding the frames for competition and providing the mail-order pharmacy services. The decrease in number of less expensive generics can be overcome with changing the pricing policy and avoiding strict financial controls typical for the company’s stores. Furthermore, the problem with the s hortage of professionals can be resolved with references to the company’s optimization and focus on providing the additional mail-order pharmacy services. The discussed actions can have more positive consequences than negative ones because Rite Aid Corporation will rely on the new trends within the industry while expanding the frames also in the company’s strategic management. The fact of adding the mail-order pharmacy functions can require the changes in the strategies, but the overall results are expected to be positive. Works Cited Hitt, Michael, Duane Ireland, and Robert Hoskisson. Strategic Management: Competitiveness and Globalization. USA: Thomson South-Western Publishers, 2013. Print.Advertising We will write a custom case study sample on Rite Aid Corporation specifically for you for only $16.05 $11/page Learn More This case study on Rite Aid Corporation was written and submitted by user Kiara Fowler to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Liquidity risk, conduit, and securitization issues Essay Example

Liquidity risk, conduit, and securitization issues Essay Example Liquidity risk, conduit, and securitization issues Essay Liquidity risk, conduit, and securitization issues Essay Underestimating the importance of liquidity risk is one of the important facts behind today financial crisis. In the past years liquidity risk has not been taken into account in stress testing, funding strategies, and portfolio management (Wehinger 2008). In large and complex institutions, benefits as well as challenges arises with a potential for internal liquidity provision to seem adequate but with harder to assess funding risks at the aggregate level. According to Wehinger (2008), while designing funding strategies, risks under stressed market conditions with sever liquidity shortages should be included for secured funding. Bank should also consider about securitization of assets and the use of conduits as those can be subject to reputation risks. Central Bank should provide clear specification on the conditions under which it would work as a lender of last resort and Central Bank should consistently communicate those rules with the commercial banks. And most importantly, risk management of bank should take into account the fact that, there is a chance of liquidity to turn into insolvency if liquidity problems weigh on investors confidence and weaken the companys equity base. In the quarterly bulletin of Bank of England (2009), it has been mentioned that overall liquidity conditions have yet to normalise to any significant degree. In order to meet banks longer terms liquidity demands, UK government already extended the term of Bank of Englands Permanent Discount Window Facility. According to the report on Enhancing Market and Institutional Resilience by Financial Stability Forum (FSF) 2008, International standard setters should enhance accounting, disclosure and audit guidance for valuations. Firms valuation processes and related supervisory guidance should be enhanced. Apart from that, reasonableness and consistency tests should be applied for valuation and price verification. In June 2008, The Basel Committee on Banking Supervision published ten principles related to Supervisory guidance for assessing banks financial instrument fair value practices. Those principles are influenced by considering value measurement and modelling challenges faced by banks during the present financial crisis. The main objectives behind publishing those principles are to help banks supervisor while assessing banks valuation processes and to promote improvement in banks risk management and control processes. One of the main amplifiers of the crisis was the lack of transparency regarding the risk profile of institutions and structured products. Wellink, 2009. According to the Basel Committee on Banking Supervision (2009), economic capital model of a bank should be effectively documented and integrated in a transparent way and senior management should consider that model seriously while making business decision and for risk management of bank. For this purpose, bank should emphasize on achieving robust estimates of stand-alone risk on absolute basis and developing the flexible capacity for enterprise-wide stress testing. In order to have transparency in securitisation processes and markets, market participants and securities market regulator should work together to expand information on securitised products and their underlying assets (Financial Stability Forum, 2008). Reform of rating processes by Credit Rating Agencies can also enhance the transparency (US Presidents Working Group on Financial Markets, 2008). PWG (2008) suggests forming a private sector group to ensure the integrity and transparency of reports. Third Pillar of Basel II framework can help Bank to increase transparency (Wellink, 2009 PWG, 2008). Pillar three of Basel II mainly focused on disclosures related to securitisation, off-balance-sheet exposures and trading activities. This paper presents a review of the financial crisis on banking sector and implication of the bank management to cope with this crisis. Several reforms has been suggested in this paper following Institute of International Finance (IIF), Basel Committee on Banking Supervision, Financial Stability Forum (FSF), Bank for International Settlement (BIS), US Presidents Working Group on Financial Markets. Some of the recommendations are already being implemented. However, the recent initiatives at the G-20 level are being considered as a first step towards encompassing reforms to help cope with present financial crisis (Wehinger, 2008). Wellink (2009) also support the initiatives taken by Basel Committee and hope that those initiatives should limit the risk that weaknesses in banks amplify shocks between the financial and real sectors.