The size and scale of the TARP program

The research paper will be written in the first eight weeks of the course. The research paper will be
the final course product and will be due the final day of the course. A detailed grading rubric will be
provided within the course.
Topic
Select a commercial bank that was identified as “too big to fail” during the 2007-2009 financial crisis
and participated in the Emergency Economic Stabilization Act of 2008 (EESA). Sometimes referred to
as the “TARP Act”, provisions of EESA were aimed at bolstering the economy and restoring
confidence in the banking system.
Guidelines
A 12-15 page (excluding appendices, table of contents, abstract, reference, and bibliography)
research paper (case study) is required. This paper will be prepared consistent with the current APA
Manual and will have a minimum of ten different references (No Wiki’s or Pedia’s). Some of the
bibliography and reference will most likely come from the firm you have chosen, e.g., source
documents, annual reports, and financial statements. As such this reduces the need for peer
reviewed sources. However, peer reviewed sources are still important and should be listed in the
bibliography/reference section(s) and cited in the paper as appropriate. This paper is due the last day
of class. In addition, the research paper will be prepared consistent with the following:
Section I: This serves as an introduction to the Research Paper. Provide an overview of the
research design of the paper. Introduce the various topics that will be addressed in the research
paper. Identify the method(s) that will be used to collect the data for the topics and how that data
will be evaluated.
Section II: There will be a brief discussion of the firm to include its principle services, market
share, geographic locations where it operates, and major competitors.
Section III: Evaluate and discuss whether the firm took excessive risks or had banking practices
that contributed to the firm requiring funds from the TARP program. The discussion should
include what factor(s) influenced your decision, the ramifications of the firm receiving TARP
funds, and what actions the firm implemented to prevent future financial crisis for the firm.
Section IV: Evaluate and discuss the size and scale of the TARP program, which only has a few
comparisons in U.S history. TARP has been compared to the Resolution Trust Corp. (RTC),
which was used to abate the savings and loan (S&L) crisis of the late 1980s and early 1990s.
Another comparison comes from the Home Owners Loan Corporation (HOLC), which was
established during the Great Depression. Discuss the pros and cons of the TARP program.
Evaluate and discuss if classifying banks as “Too Big to Failure” can lead to excessive risk taking
by the banks.
Section V: The Dodd-Frank Regulatory Reform Bill was passed with the intent of cleaning up the
consequences of the past decade’s financial sector decline. Evaluate and discuss the impact of
Dodd-Frank on the firm and whether the law will help prevent future banking crisis.
Section VI: Summary and conclusion(s). The discussion should provide a brief summary of the
previous sections, and the conclusions you have reached.