LAWS9971 · Law

Banking Regulation

Boston College Law School

This course examines why the banking industry is one of the most heavily regulated U.S. industries and how federal safety and soundness regulation works from cradle to grave. The course begins by providing a historical overview and analyzing the rationales for government intervention in banking. The remainder of the course examines the techniques used by the government to constrain the risk of bank panics, including entry controls (through chartering), activities restrictions, prohibitions against mixing banking and commerce, minimum capital and other prudential requirements, and limits on risky activities by bank conglomerates. Special attention will be devoted to federal deposit insurance and the FDIC's procedures for resolving insolvent banks. Students will consider how well these rules work and the reforms enacted after the financial crisis of 2008. This course does not cover consumer financial protection or provisions of the Uniform Commercial Code.