U.S. Banking Law and Regulation

1 unit

Sound, fair and authorized activities of banks and other entities extending credit and engaging in financial intermediation are necessary to promote stable financial markets and facilitate a thriving economy. While the law, regulation and history of banks are complicated, working knowledge is critical for lawyers to be effective across a variety of disciplines. The course covers federal banking statutes, cases, regulators, named regulations, examination manuals, and the variety of entity types operating in the US banking sector. The course integrates history and statutes to contextualize the salient features of banking institutions. While engaging the material, students will learn to distinguish the myriad regulatory authorities created by statute and understand the impact of particular judicial decisions shaping bank regulatory powers. Students will review recent examples of civil money penalties, asset size growth restrictions, and cases of resolution and recovery. The course will compel students to engage essential questions ranging in complexity from “What is a bank?” to “What are the likely consequences on a National Association of failing to meet the OCC’s regulatory expectations on capital and liquidity?” Students will also develop a framework to inform forward-looking questions on those characteristics banks and their regulators are likely to possess in the future. Grades will be based on attendance/participation, two (2) closed book quizzes administered in class, and a final paper submitted within the two (2) weeks following the last class meeting.