Tag Archives: 2008

05/16/11

Banking on that Regulation

In 2009, Obama proposed to make stricter regulations in the financial sector. AIG was an insurance giant company that has major influence all over the world. It’s failure would destroy the financial system. Obama proposes that the government be able to seize companies in order to save them. This stricter regulation would hopefully bring a check to other companies.

During the 1980’s, there was a movement pushing for government to have deregulate the financial sector. Some acts proposed allowed firms to take part in competition in traditional banks, investment bansk and insurance companies. There was also the creation of credit default swaps which was the reason why AIG failed. Many people blame the crisis in 2008 due to the deregulation from the government in the financial sector.

Source: 

http://articles.latimes.com/2009/jun/16/business/fi-financial-regs16

http://en.wikipedia.org/wiki/Deregulation

05/15/11

BP Rig Missed 16 Inspections Before Explosion

 

BP’s Rig Explosion back on April 20, 2010 rocked the entire country. Investigations began immediately on how something of this magnitude could happen. This news article reports on how upon government inspection it was seen that BP’s Deep Water Horizon Rig was only inspected 6 times in the year 2008. Rigs are supposed to be inspected once a month, meaning it had missed 6 for that year, and 16 in total since 2005. The most updated inspection during the time of the upcoming explosion was on April 1 by Eric Neal, a novice who had just started his inspection training four months prior. It was obvious that an explanation was needed and serious in depth investigating on what when on behind the scenes of the inspection agency and BP.

 

 

http://www.cbsnews.com/8301-31727_162-20007514-10391695.html <—Source