Expansion and Merger Research Paper Example | Topics and Well Written Essays - 1000 words

Expansion and nuclear fusion - Research Paper ExampleBut empirical evidence points to the fallacy of this theory. As it is, government intervention is only sought when there is a major economic crisis, like during the 2008 Wall Street crash. It is a bit unfair for the general population that tax-payer money is doled out to greedy corporations when they are in trouble. At the same time, during the boom their behavior is not regulated in the name of Laissez-faire. The activities of the monetary function fabrication being the cause for the current economic slowdown, it would be prudent to call for greater government ordination in this area. The prospects and possibilities of Armor Bank for further expansion volition have to be weighed in the broader scope of the stability and long-term sustainability of the economy. 2. Justify the rationale for the intervention of government in the market process in the U.S. The American economy had al offices seen cycles of boom and bust. It is fair to say that the domestic and economic policies framework of discordant American Presidents of past have been generally business friendly and thereby been lax on regulation. The closely recent economic crisis witnessed across the world was precipitated by financial institutions in the United States. The collapse of the Lehman Brothers in 2008 brought to light the reckless and greedy decision making of top executives in this industry, leading to the inevitable collapse. In this context, the idea of regulation as a legislative means to encourage the things society as a whole likes (such as economic development) and discourage the things it doesnt (thus, the sin tax) (Rosenzweig, 2007) is the way to go. As globalization and technology advance, financial institutions become the focus of additional regulation new regulations might be seen as a way of thwarting money la beneathing, achieving community development goals, or channelling credit to needy borrowers, for example. Such use s are true reasons that lead regulation toward its true mission - to help establish the boundaries within which an industry can operate. (Jordan, 2001) In the prevailing regulatory environment in the United States, there are only limited vault for corporeal consolidation. This means that there is a constant flux of merger & acquisition activities in corporate America. But such a free reign had not helped strengthen the general economy, beyond the secluded sector. Hence, there is credence to the view that greater control should be exerted over M&A activities. This is in particular true with respect to the financial services sector that bears major culpability for the current decline of the economy. 3. anticipate that the merger faces some threats and that the industry decides on self-expansion as an alternative strategy, describe the additional complexities that would arise under this new scenario of expansion via capital projects. Expansion via capital projects is a relatively more challenging shape than finding opportunities for mergers. Yet, this could be achieved via starting operations in new and unexplored verticals within the financial services sector. In the context of Armor Bank, if the company could consolidate itself into a financial holding company, new opportunities for harvesting beckon, including banking and insurance, investment and commercial banking, mortgage banking, trusts, and annuitieseven the lines between banking and commerce blur. (Jordan, 2001) But managing a broad portfolio will bring