Topics in Financial Regulation: Consumer and Investor Protection

  • Howell E. Jackson (Harvard University)

Spring 2015
Professor Howell E. Jackson
Harvard Law School
Office: Griswold 510
Email Address: hjackson@law.harvard.edu
Class Meetings: Mondays & Tuesday: 1:20 to 2:50 pm [Note: Class will not meet the week of February 9th and the week of March 30th will be the last week of classes.]
Classroom: WCC 3018
Office Hours: Friday Afternoons, 3:00 to 5:00 pm, and by Appointment.
Please contact my assistant, Carole Mason at camason@law.harvard.edu for scheduling

This course will take up a series of topics in financial regulation, with an emphasis on consumer and investor protection. For the most part the course focus will be on emerging areas of law where either regulatory standards or legal doctrines are in flux. Among other things, coverage is designed to introduce students to a range of regulatory strategies and to develop an appreciation of the advantages and disadvantages of each approach. A subsidiary theme will be to encourage students to think analytically about their own financial goals and challenges. A tentative outline of course coverage appears below.

Students enrolled in the course will be expected to undertake a modest research assignment over the course of the semester. Typically two students will be assigned to work on each research paper. These assignments will, for the most part, be related to topics covered in the class, although students may choose to take on different topics with permission of the instructor. There will also be a short take-home examination distributed at the end of the semester. Readings for the course will come from a variety of sources, including excerpts from Michael Barr, Howell Jackson & Margaret Tahyar, Financial Regulation: Law and Policy (forthcoming Foundation Press 2016), plus occasional policy problems and various primary sources. Readings will be distributed through the Canvas website and an associated H2O playlist.

6 Part VI -- Consumer Protection Under the CFPB -- March 24th, 30th, and 31st 6 Part VI -- Consumer Protection Under the CFPB -- March 24th, 30th, and 31st

For the next two classes, we will explore the work of the Consumer Financial Protection Bureau. As an introduction to the subject, take a look at Adam Levitin's article on the Bureau, which is assigned as background.

6.1. Adam Levitin, The Consumer Financial Protection Bureau: An Introduction, 32 Review of Business and Finance Law 321 (2012-2013)

Adam Levitin, The Consumer Financial Protection Bureau: An Introduction, 32 Review of Business and Finance Law 321 (2012-2013)

6.2 TFR Class Thirteen: The Regulation of Mortgages After the DFA -- March 24th 6.2 TFR Class Thirteen: The Regulation of Mortgages After the DFA -- March 24th

In today's class, we will dig into the regulation of mortgages under the Dodd Frank Act. The ABA memorandum gives an overview of the topic, which you should read first. Then take a look at Part III and IV of the Regulating Against Bubbles article assigned for Class Twelve. Finally, we will take a brief deep dive into one specific rule-making -- Integrated Disclosure for RESPA and TILA -- focusing specifically on the CFPB's reliance on a Quantitative Study. The study is appended below. Please read over the executive summary of the study and then skim the Federal Register release, focusing on the highlighted references to the Quantitative Study. To what degree does the study demonstrate important benefits for this new regulation?

6.2.1. Integrated Mortgage Disclosure Under RESPA and TILA, 78 Fed. Reg. 79,730 *Dec. 31, 2013) (highlighted for Know Before You Owe Report)

Integrated Mortgage Disclosure Under RESPA and TILA, 78 Fed. Reg. 79,730 *Dec. 31, 2013) (highlighted for Know Before You Owe Report)

6.2.2. Quantitative Study of the Current and Integrated TILA-RESPA Disclosures (Nov. 2013)

Quantitative Study of the Current and Integrated TILA-RESPA Disclosures (Nov. 2013)

6.2.3. ABA Memorandum on Mortgage Reform (September 2013)

ABA Memorandum on Mortgage Reform (September 2013)

6.3. Lauren E. Willis, When Nudges Fail: Slippery Defaults, 80 U.Chi. L. Rev. 1155 (2013)

Lauren E. Willis, When Nudges Fail: Slippery Defaults, 80 U.Chi. L. Rev. 1155 (2013)

6.4 TFR Class Fourteen: The Regulation of Short-Term Credit Under the Dodd-Frank Act -- March 30th 6.4 TFR Class Fourteen: The Regulation of Short-Term Credit Under the Dodd-Frank Act -- March 30th

In today's class, we will continue our discussion of the work of the CFPB. We will start by completing our consideration of the CFPB's Integrated Disclosure Regulations for RESPA and TILA. To what extent does the Know Before You Owe Study demonstrate that the regulation will benefit consumers more than the costs of transitioning to a new disclosure regime. Our next topic for class discussion will be the structure of the CFPB itself, as outlined in the Adam Levitin article assigned for Class Thirteen. The one new reading for today's class is Lauren Willis's article on When Nudges Fail. As you review this piece, consider how it relates (or does not relate) to the Bubb and Pildes article on retirement savings we read earlier in the semester.