Introduction
In the United States, some bodies have been formed with the aim of preventing consumer and investor exploitation. These bodies are aimed at providing financial protection to the citizens. Some special laws such as Usury laws have also been formed to protect the citizens from exploitation. These bodies include the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of Currency, the Security Exchange Commission and the Financial Industry Regulatory Authority (FINRA) (Mckay & Seale, 2000).
The Federal Deposit Insurance Corporation (FDIC) and its purpose
The Federal Deposit Insurance Corporation (FDIC) is an independent public corporation based in the United States. It was formed in the year 1933 when there was a great depression in the banking system in the country (Mckay & Seale, 2000). The corporation was formed with the aim of boosting public confidence in the banking system in the country. It was formed to ensure that there was stability in the banking system in the country through promoting of sound banking practices. Currently, the FDIC holds three responsibilities. These are acting as an insurer, acting as a supervisor to the banking and monetary firms in the nation and also as a receiver (Mckay & Seale, 2000).
The Office of the Comptroller of Currency and its purpose
The Office of the Comptroller of Currency is an independent bureau which falls under Treasury in the United States. OCC regulates charter and supervises all national banks, federal saving institutions as well as foreign bank agencies (Mohammed & Nguyen, 2017.). The OCC was formed with a mission of ensuring that all federal banks and financial institutions operated in a safe manner and provided appropriate services to their customers through the provision of appropriate services to financial access in the country.
The Security Exchange Commission and its purpose
The Security Exchange Commission is a governmental commission which was formed by the United States Congress with the aim of protecting investors, maintaining fair and orderly sales as well as purchases in the security markets and also to promote capital formation in the nation. The commission is also aimed at protecting investors against any form of frauds or manipulation in the stock markets, and also it closely monitors takeover actions in the U.S.
Financial Industry Regulatory Authority (FINRA) and its purpose
Formed in 2007, Financial Industry Regulatory Authority is a private corporation. This body is dedicated in protecting investors and ensuring that there is marketing integrity in the country through effective and efficient regulation of broker-dealers (Mohammed & Nguyen, 2017). Hence, FINRA is not a government agency rather it is a private corporation which is not interested in making profits but rather in protecting the America’s investors against exploration by ensuring that the broker dealers in the country operate freely and fairly. The body also ensures that anyone selling securities product in the market is certified and licensed, any product sold to the investor suits the investor's needs and also ensuring that investors receive complete disclosure on the investment product before they purchase.
The Federal Reserve System (FED) and its purpose
FED is the central bank of the United States (Mohammed & Nguyen, 2017). FED was created by the Congress with the aim of providing the nation with a safer, flexible and a stable monetary system in the country (Mohammed & Nguyen, 2017). Currently, the body holds four responsibilities. These are; conducting the national monetary policy, overseeing and regulating banks and other financial institutions(Mohammed & Nguyen, 2017), maintaining a stable financial system and providing financial services to the United States administration, finance organizations based in the United States and other foreign institutions (Mohammed & Nguyen, 2017). The body also oversees the nation's payment system.
Usury laws and its purposes
Usury laws are laws and policies that govern some interests that should be charged on loan. These laws especially target lenders who charge high interests on loans hence exploiting the debtors (Rodkey & Ryan, 1999). The body sets caps and the maximum amount of taxes that can be levied on a loan. Usury laws fall under the commerce law in the constitution. It was formulated with the aim of making sure that lenders did not exploit consumers by charging high interests on loans.
References
McKay, P., & Seale, C. (2000). FDIC (federal deposit insurance corporation). Journal of Business & Finance Librarianship, 5(3), 63-73.
Mohammed, D., Omar, M., & Nguyen, V. (2017). Enhancing Cyber security for financial industry through compliance and regulatory standards. Security Solutions for Hyperconnectivity and the Internet of Things, 173-197
Rodkey, R. G., & Ryan, F. W. (1999). Usury and the Usury Laws. Michigan Law Review, 23 (8), 928.
