Details

Banks play a key role in business and the economy. The objective of this course is to give participants a basic understanding of that role within the context of a regulated industry. The course will be of particular interest to students pursuing a business-related career. Teaching Method: While a majority of the course will be presented in a traditional law school class format, practical sessions will be conducted on a number of topics, including organizing a new bank, forming a financial holding company and a basic understanding of a bank's financial statements. Overview: Banks perform a unique role in the economic sphere and unlike most other private enterprises, are subject to extensive and comprehensive regulation and supervision. Further, the U.S. bank regulatory system is divided among various federal agencies and the fifty states. Currently the U.S. banking system is confronted by new challenges emanating from technological change and competition from both U.S. based non-bank financial conglomerates as well as foreign financial institutions that operate under different regulatory structures. This course will serve to acquaint students with the various features of the current regulatory systems governing the operation of different classes of commercial financial institutions. Attention will be given to the dramatic changes brought about in the industry by the recent passage of the most significant banking legislation in the past fifty years. Additionally, because financial institutions themselves are simply corporations subject to industry regulation, this course will also offer students some practical experience in general corporate law. Topics will include, among others, the function and regulation of banks, bank mergers and acquisitions, raising capital, entry into the securities and insurance fields and regulatory enforcement actions. Evaluation: The grade for this three-hour course will be primarily determined by a final written examination, although participation and performance in class discussion will be factored into the grade. Prerequisites: There are no formal course prerequisites; however, a basic understanding of general corporate structure would be helpful, although not required. Texts: Macey, Miller & Carnell, Banking Law and Regulation (Third Edition). Handout materials will be available on Blackboard CourseInfo.