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Regulations in the financial industry

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A lot of different financial branches, banks, investment businesses, and insurance companies are all government by financial rules. They safeguard the clients from financial dangers and fraud. However, they must be weighed against the necessity for capitalism to function properly. Democrats push for greater restrictions as a matter of policy. Republicans are known for favoring deregulation.

Importance of the regulators

Consumers are protected against financial fraud by regulations. Mortgages, credit cards, and other financial instruments that are immoral are among them. Effective government regulation keeps businesses from taking unnecessary risks. Some experts believe that stronger rules would have prevented Lehman Brothers from engaging in hazardous activity, preventing or limiting the financial crisis of 2008.

Monopolies are prevented from gaining control and expanding their power. Monopolies that are unregulated are…

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