Trust2 Home Fund Case Study Example | Topics and Well Written Essays - 5000 words

Trust2 Home Fund - Case Study ExampleIn 2003 and 2004, accounting irregularities in mortgage finance companies Fannie Mae and Freddie Mac grabbed the attention of every one in the world. The affliction of Northern Rock in UK has shaken the public confidence in monetary markets.Sub prime bestow killed many homes dreams in US and UK. Global recession has turned many financial institutions and programmes in doldrums. stableness in the financial market is lost. Investors have become shaky about hazy dealing from financial institutions.If the private sectors are to rebuild that confidence and dedicate, they must have transparency, respect and integrity. They must be interchange to the development of a successful and trustworthy brand in financial services. These values need to be introduced at the macro level. Sufficient confidence has to be built among customers that the banks have quality capital and that they prat absorb the losses incurred in course of operation. Insurers must h ave the capacity to support liabilities. There is imperative need for sound back up by reliable institutions preferably government to all endangerment plans and transactions. Protection must come from the government through stable financial system. Products launched in the financial particle need scrutiny and approval by the authorities. Only then confidence of public and investors net be restored and stability can be promoted in the financial market. This can be more effectively do by the single institution of Government. FSA is on the work to strengthen and rebalance regulations that were lost in between so that lost confidence is restored in the financial system.Sam Fleming, November 1,2007, Daily Mail, Credit crisis could cripple UK economy Product memory the above scenario in the mind there is need for opening such business fronts wherein investors have confidence, trust and reliability. Money market mutual funds have such face to restore the investors confidence if O.K. by government. The industry represents a multibillion-dollar investment segment.Money market accounts are popular alternatives to CDs, short-term bonds, and savings accounts. This is possible by competitive yields, daily access to the money, and a sense of safety and stability that a money market provides. Money market funds offered by the top banks and brokerage houses are too not immune to a loss in value or liquidity but they can present a better picture. Banks in the money market plan use the depositors money in buying a large pool of very short term bond including, government bonds, somatic bonds, or municipal bonds, which are more secured. True money market funds are not a