Why are there so many different financial intermediaries other than commercial banks?

There are various types of financial institutions and intermediaries such as commercial banks, investment banks, mutual funds, hedge funds, pension funds, insurance companies, etc. Why are there so many different financial intermediaries other than commercial banks? How does an investor’s risk attitude and/or wealth play a role in his/her selection of a financial institution or intermediary? If you were an investor seeking moderate return for your investment, how would you select a financial institution or intermediary? Choose one and explain your reasoning. What are the main differences between mutual funds and hedge funds in their ways of investing? Hedge funds are not regulated by the Securities and Exchange Commission (SEC). What does this mean?

Your initial post should be a minimum of 300 words

Assignment B:  The 2007–2009 Financial Crisis and Its Impacts on the Financial Institutions [WLOs: 4] [CLOs: 3, 4, 6, 7

 

The financial crisis of 2007–2009 was the most severe one since the Great Depression of the 1930s. What were the main causes of the 2007–2009 financial crisis other than the housing market collapse? What were its impacts on the U.S. financial institutions and markets? If you were an economic policy decision maker, what could you have done better to resolve the financial crisis during that period?

Your initial post should be a minimum of 300 words.