(LAWA-4015) - 3 UNITS
In 1999, Congress passed the Gramm-Leach-Bliley Act which permitted integration of all four segments but only within the framework of a bank holding company structure subject to relatively stringent regulation by the Board of Governors of the Federal Reserve System. The Act presents the possibility of an integrated approach to financial services. As a result of the developments leading up to the Act and its liberalizing provisions, financial institutions are facing a period of rapid, if not revolutionary change. The course is designed to develop an understanding of bank regulation but also, and to a lesser extent, of the regulation of the other three industry segments, as well as of composite holding companies. In addition, we shall investigate some of the problems which led up to the Act and shall attempt to determine whether the solutions embodied in the Act will have the effects which its authors intended. This latter examination will involve a consideration of the policies underlying the ever more extensive regulation of financial institutions, and of the U.S. Economy.
Because the United States has a regulated economy and because banking is the paradigm of a regulated industry, the study of banking law provides a useful perspective on American economic regulation generally. The course will identify those substantive rules and those skills which will aid a lawyer in dealing with Federal regulatory issues in general.