Dodd-Frank Wall Street Reform Research Paper Example | Topics and Well Written Essays - 1250 words

Dodd-Frank Wall Street Reform - Research Paper Example People had to borrow in order to finance their mortgages. From the periods of 1994, to 2004, the ownership of homes amongst residents of United States of America increased from 64%, to 69.4% (Whalen, 2008, 220). Because of an increase in the demand of the houses, the price of these commodities increased by 124%. These made consumers to refinance their homes, and take on second mortgages resulting to a reduction in their disposable income. By the time 2008 reached, the United States mortgage debts in relation to its GDP increased by 26% reaching a figure of 73%. This is from the periods of the 1990s. The easy availability of credit, and an increase in the house prices led to the building boom, and this further increased the prices of the houses, and eventually to their decline in the periods 2006 (Deminyank and Herbert, 2011, 1851 ). Paying back these mortgages became difficult, because of the fall of the home prices, as compared to the prices in which they initially bought the homes. This had an effect of reducing the value of mortgage backed securities, eroding the financial capability of the banks. This failure led to the emergence of the subprime financial crises. ... Another reason for the emergence of the subprime crises is failure by the government to effectively regulate the financial activities of various banking organizations, and their financial products. This was made possible by the 1982 mortgage transactions parity act. This act allowed credit organizations to readjust their mortgage rates, and its aims was to make it possible for as many people as possible to own homes. This act led to an abuse of the mortgage lending procedures, because credit institutions could offer any amount of interest payments to their loan products. In 1999, the Federal government repelled the Glass Steagal Act, which created an environment of risk consciousness in investment banking (Immerglack, 2011, 247). This act had an effect of regulating the creditors during boom periods, making credit organizations to undertake risk measures while carrying out their duties. Its repeal made banking organizations, to lend freely, without establishing measures that would le ad to the mitigation of risks. The Securities and Exchange Commission also played a role into the emergence of the subprime mortgage crises. The commission changed the rules of calculating its capital reserves, and this enabled credit organizations to increase the percentage of debts they incurred for purposes of financing their operations (Deminyank and Herbert, 2011, 1850 ). The consequences of this action are that it led to the growth of mortgage securities that supported subprime mortgages. This eventually led to the near collapse of the banking system, because of an increase in their debts ratio, and inability to pay. This led to the enactment of the Dodd Frank financial reform act. This act created changes to the

Software Design Essay Example | Topics and Well Written Essays - 750 words - 1

Software Design - Essay Example is the procedure by which a developer creates a specification of a software objects, anticipated to accomplish objectives, using a set of available components and theme to constraints (Budgen 2003). The Design recognizes the how of the system. It comprises tradeoff analysis based on system requirements. Design quality concerns attributes applicable to ensure sustainability of the system. The attributes analyzed in this paper are concerned with the sustainability of the design. Quality features are similarly applicable to function-based and object-based designs (Rosenblatt 2014). The attributes includes cohesion, adaptability, coupling, understandability and traceability. Cohesion is an assessment of how adequately a component interface within the system. A component should execute a single consistent entity or utility. This attribute is a desirable design constituent attribute as when an alteration has to be completed. It is restricted in a distinct cohesive component. There are a number of levels of cohesion that have been identified; though, not necessary for this paper. This design attributes is not well illustrated (Page-Jones 1999). Experts have encountered a challenge in classifying this attribute as a design component. Inheriting attributes within the design component from super classes makes cohesion as a design attribute weak. In system design, component can be understood when the super-classes also the component are examined. Coupling is a measure of stability or strength of inter-connection among systems components. When it is loosely done then, the component alterations are unlikely to affect other components. Control information or shared variables exchange lead to tight coupling. Loose coupling is achievable when state decentralization (as in objects) is executed and component interfacing through parameters or message passing (Tsui et al. 2014). Coupling allows for inheritance of classes thus facilitate ease of usage as a design attribute in