This course examines the nature of major types of financial institutions (e.g., banks, mutual funds, hedge funds, insurance companies) as well as the incentives of decision makers in these institutions. Course also covers the role of regulation in financial institutions and financial crises. By the end of this course, students will understand the role of financial institutions in the economy, the effects of informational problems and agency costs on behavior of agents in these institutions and will be able to critically evaluate the advantages and disadvantages of different regulatory reactions to financial crises.