Chapter 12

Buying and Selling Investments

Slide 2

What Regulatory Agencies Help Consumers?• Banks, brokerage

companies, and other financial businesses are controlled by agencies created by Congress.

• Agencies provide oversight to ensure that investors’ rights are protected.

12-3 Regulatory Agencies and Laws

Slide 3

What Regulatory Agencies Help Consumers?

12-3 Regulatory Agencies and Laws

• Federal Deposit Insurance Corporation

• National Credit Union Administration

• Financial Industry Regulatory Authority

• Pension Benefit Guaranty Corporation

• Commodity Futures Trading Commission

• Office of Thrift Supervision

• Office of the Comptroller of the Currency

• Securities and Exchange Commission

• Department of the Treasury

• Internal Revenue Service

• The Fed

Slide 4

What Are Financial Reform Laws?

12-3 Regulatory Agencies and Laws

• Sarbanes-Oxley (SOX) sets standards for public companies and accounting firms for the reporting of finances.

o Created in response to financial scandals at large companies.

o Requires improved financial reporting, audits, and accounting services.

Slide 5

What Are Financial Reform Laws?

12-3 Regulatory Agencies and Laws

• Wall Street Reform Act aims to create and maintain a stable financial system.o New consumer

agencyo Credit scoreso Interchange feeso Liar loans

o Mortgage helpo New oversighto FDIC takeovers

Slide 6

Building Communications Skills

Persuasive Messages• Be concise, clear, and convincing.• Apply logical and appealing arguments.• In first paragraph, give one good reason why

the reader should keep reading.• In the middle paragraph, explain your position

and give evidence to support it.• In the final paragraph, give the reader a

reason to take action or accept your position.

12-3 Regulatory Agencies and Laws