01 August 2012 07:00

Famous financial institutions an investor should know

There are many well established financial institutions that every investor should be aware of. Euroinvestor has picked out some of the most famous so you can get to know them better.

The European Financial Stability Facility

The European Financial Stability facility (EFSF) was set up in may 2010 as a temporary facility to raise loans by the issue of bonds and other debt instruments. Its function is to support members of the eurozone in times of economic difficulty, and it is currently involved in the latest round of bailouts. With its headquarters in Luxembourg, the EFSF generates the cash needed itself on the open investment market, and is not actually a fund.

Fannie Mae and Freddie Mac

Officially known as the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC), Fannie Mae and Freddie Mac are US government sponsored enterprises (GSEs), with the purpose of maintaining and improving liquidity in the US mortgage market. The way they do this is by buying mortgages on the secondary market then selling them on as mortgage backed securities to investors on the open market. This brings more money into the cash pool available for mortgages from investors.

The European Central Bank

The European Central Bank (ECB) is the central bank of the Euro, and sets the monetary policy of all the countries in the eurozone. Formed in 1998 and based in Frankfurt, its role is to maintain price stability across the eurozone by being in control of the supply of money and of interest rates. It is also the sole authority on issuing euro banknotes.

Organisation of the Petroleum Exporting Countries

Better known as OPEC, this global cartel is made up of 12 oil producing companies and supplies the world with around three quarters of its current oil production. Formed in 1960 at the Baghdad conference, the OPEC maintains prices by imposing maximum production quotas on its members, although with oil prices currently skyrocketing, most member states are operating at near maximum capacity.

The International Monetary Fund

Known as the IMF, its aim is to ensure the stability of the international financial systems. Formed in 1945 and with its headquarters in Washington, the IMF had the initial aim to assist post-war economic reconstruction. It  now has 187 members and is most well known for bailing out other countries that are having major problems with their economies, lending them huge amounts of cash.

Investment Banks

Investment banks are financial institutions that provide individuals, corporations and governments with ways to raise funds. This is often done by underwriting or acting as an agent for the client in issuing securities. Another service they offer is to assist companies with mergers and acquisitions.

The Bank of England

The Bank of England is the central bank for the entire United Kingdom. Founded in 1694 as a private company, the BoE has its headquarters in the City of London and acts as the governments banker. The main role of the BoE is to provide and regulate the UK's currency. It has a monopoly on issuing bank notes in England and Wales and regulates the issue of banknotes from Scotland and Northern Ireland.

The Financial Services Authority

The FSA is an organisation that is in charge of regulating the financial and investment industries in the UK. Founded in 1985, the FSA is an independant company financed by the industry itself, so it does not have to rely on public funding.

The London Stock Exchange

The LSE is a stock exchange that provided companies with a forum to raise capital. Founded in 1801, the LSE is based in London and  can provide trading services so investors can trade shares, and other instruments and commodities, with each other, via the intermediaries of their brokers and the LSE's electronic trading systems. The LSE also provides a derivatives market through its EDX service.


 

 

 

 

 


Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
18 Jul
OMXC20
Det er jo i hvert fald påfaldende så hurtigt man i den "alvorlige" situation har haft "overskud" til..
19
19 Jul
I:SP500
Det har ikke noget som helst med aktie bobler at gøre. Markedet reagerer rationelt, en lastbil kører..
18
22 Jul
 
slut nu Taastrup   Jeg har været med toget en del år.. og det ved du også godt..    Du er en belastn..
15
19 Jul
 
Efter at have analyseret ca. 1700 amerikanske aktier - udvalgt efter hvilke akiter havde de informat..
14
17 Jul
 
Om 10 år er Tyrkiet et sunnimuslimsk religiøst diktatur a la det shiamuslimske Iran. Skal ikke undre..
13
19 Jul
FING-B
Hvorfor tænker man automatisk på Gøg og Gokke når man hører om dette komikerpar :   Lindberg og Swif..
11
19 Jul
SUNEQ
I sidste uge var der retsmøde i Chapter 11 sagen med SunEdison. På dette retsmøde blev det diskutere..
11
22 Jul
I:DAX
Han hentyder til hendes "alle er velkommen"politik der giver bagslag. Hvor naiv og hjernedød må man ..
10
19 Jul
FING-B
http://www.redeye.se/analys/today/fingerprint-cards-preview-q2-earnings-report
10
21 Jul
SAS-DKK
Kan faktisk ikke se problemet. SAS arbejder på at gøre rejsen mere smidig for deres passagerer. Det ..
9

Form 8.3 - SABMiller Plc

22/07/2016 15:25:11
            FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1..

PayPoint plc : Director/PDMR Shareholding

22/07/2016 13:50:21
22 July 2016 PayPoint plc ("the Company") As a result of transactions on 22 July 2016 by the PayPoint plc Share Incentive Plan (a HM Revenue & Customs..

Rathbones : Form 8.3 - RPC Group Plc

22/07/2016 10:50:29
FORM 8.3 OPENING POSITION / DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
L'ORÉAL: News Release : "L'Oréal signs agreement to acquire IT Cosmetics"
2
ForFarmers N.V.: ForFarmers strengthens its position in Dutch swine sector by acquiring Vleuten-Steijn
3
Kenmare Resources : Capital Restructuring Update and Results of Open Offer
4
Fitch Ratings: change in methodology aligns long-term local currency ratings with long-term foreign currency ratings
5
Shareholder Update

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2016   Disclaimer and Terms of Use
Quote information is delivered by Interactive Data.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
23 July 2016 14:06:29
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20160714.4 - EUROWEB5 - 2016-07-23 15:06:29 - 2016-07-23 14:06:29 - 1000 - Website: OKAY