Big Bank Regulation
Banking has evolved rapidly in just a few years. Global trade and investment has been supported and promoted by an emerging global financial system. This has in turn encouraged the growth of giant universal banks, based in the United States, the United Kingdom, mainland Europe, and in China and Japan. Most modern banks of any significant size (greater than $100 billion in total assets) have transnational and often truly global operations, irrespective of where they are headquartered. These financial behemoths present new opportunities for global finance, but they also create dramatic new risks and regulatory challenges. Since the Global Financial Crisis of 2008, the largest in a long run of domestic and international crises since the Great Depression of the 1930s, a new framework has been emerging that fundamentally changes the way in which such financial institutions must be regulated. The walls between the three main sectors of finance—banking, securities and insurance—have broken down, yet at their core banks continue to be somewhat unique in their functions and the challenges they present for financial stability. This course will review this development and focus on the established and emerging regulatory architectures and systems, both domestic and international, as well as the future challenges and prospects for global and domestic financial reform.
Although there will be a substantial amount of statutory and some important case law, the course will be of interest to, and manageable by, graduate students in public policy, economics and business studies.
There will be a 3-hour open book exam.
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.