Course Information

Course Number

535

Credits

2

JD Graduation Requirements

This course typically satisfies all or some of the following JD graduation requirements:
  • Writing

Financial Holding Companies Law

For a number of years, banks, thrift institutions, insurance companies, broker-dealers, and investment advisers have searched for the optimal organizational structure in which to conduct their various financial services activities. Some of those efforts also involved using a particular structure, such as forming a holding company affiliate or an operating subsidiary, for only through that particular structure could the financial holding company exercise a specific power (i.e., engage in a specific activity such as selling insurance or underwriting securities). With the passage of the Gramm-Leach-Bliley Act in November 1999, the structuring alternatives have increased and have been compressed, at the same time, depending on which particular financial services activity is the focus of the inquiry, and several new powers (such as merchant banking) will become available to financial holding companies for the first time while others (such as the activities a domestic bank holding company can engage in off-shore) have just become available on shore as well for operating subsidiaries of banks. The activities of unitary thrift holding companies have not been curtailed, but only financial services firms can become owners of thrift institutions. Finally, state-chartered banks that are not members of the Federal Reserve System wishing to engage in non-banking activities as a principal continue to enjoy special status under the Federal Deposit Insurance Act.



This seminar will survey the statutory, administrative, and litigation background behind the development of insurance agency, securities brokerage, and securities underwriting powers for the banking and thrift industries, and the development of deposit-taking activities for the insurance and securities industries, culminating with an in-depth focus on the provisions in the Gramm-Leach-Bliley Act respecting electing to be a financial holding company subject to the jurisdiction of the Federal Reserve Board as the "umbrella" Federal functional regulator.


Please note that course organization and content may vary substantially from semester to semester and descriptions are not necessarily professor specific. Please contact the instructor directly if you have particular course-related questions.