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Class Eight -- Thursday, September 25, 2014
In today’s class, we will turn to the regulation of organizational structure and principally the Bank Holding Company Act. The principal readings are from an excerpt from Chapter Four excerpt of The Regulation of Financial Institutions, which describes the regulation of bank structure on the eve of the financial crisis of 2008. You can skim the sections on geographic restrictions (pages 302 to 309), but do pay attention to basic overview of the bank holding company (and particularly the section on control and the Sumitomo order – pages 309 to 314) and the definitions of company and bank (pages 315-317). You should also look over the materials on activities restrictions of bank holding companies, which is covered in pages 321 to 342. (The final section of the excerpt concerns the financial obligations of holding companies; you can ignore those readings for now.) But please do read over the Memorandum on Walmart and consider how you would address the issues posed therein.
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