Banking Law and Regulation (LAW-857-001)
Madden
Meets: 06:00 PM - 08:40 PM (TH) - Room 526
Enrolled: 15 / Limit: 15
Notices
There are no notices at this time.
Description
This course examines the development of financial intermediaries in the United States, including the banking, thrift, insurance, and securities industries. Traditionally, in the United States these industries have been separated with regulatory control divided between the states and the federal government. Sometimes this separation and division of oversight was by conscious design and sometimes it was by historical happenstance. Some have called our banking system a "historical accident." The debate between Thomas Jefferson and Alexander Hamilton lives on. Jefferson feared the concentrated power of large money-center financial institutions while Hamilton believed they were a necessity to assure economic prosperity and financial stability. Our dual banking system is to some extent a product of this debate.
The separation of commercial banking, investment banking, and insurance reached its high-water mark in reaction to the Great Depression. By the 1980's and 1990's, however, that separation began to give way. Today, through the use of the holding company corporate structure, large holding companies participate in all three industries through their affiliates and subsidiaries.
In this course, we will study the modern financial services structure as well as the dramatic upheaval that has taken place as a result of the credit crisis that began in the sub-prime real-estate market but soon spread to all facets of credit. In response to the Great Recession, the regulatory pendulum to some extent has swung back toward greater structural separation and regulation as happened in the 1930's in response to the Great Depression. In 2010, Congress passed and President Obama signed into law the Dodd–Frank Wall Street Reform and Consumer Protection Act. This course will examine the changes Dodd- Frank has made in the way we regulate financial institutions.
Lastly, we will focus a portion of each class on what is happening currently in the financial industry, including the current foreclosure crisis and issues surrounding efforts by investors in residential mortgage securitizations to require that loans be repurchased by the loan originators due to alleged violations of representations and warranties in the securitization agreements.
Textbooks and Other Materials
The textbook information on this page was provided by the instructor. Students should use this information when considering purchases from the AU Campus Store or other vendors. Students may check to determine if books are currently available for purchase online.
We will be using as our casebook Carnell, Macey and Miller, The Law of Banking and Financial Institutions (Wolters Kluwer, Fourth Ed. 2008, ISBN: 978-0735552852), supplemented by materials related to Dodd-Frank (ISBN: 978-0735570429).
First Class Readings
Carnell, Macey, and Miller, The Law of Banking and Financial Institutions, pp. 1-34.
Jerome A. Madden, A Weapon of Mass Destruction Strikes: Credit Default Swaps Take Down AIG and Lehman Brothers (Business Law Briefs, Fall 2008 WCL)
(See Business Law Brief office for copies)