The Glass-Steagall Act and the Shifting Discourse of Financial Regulation K
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Avoiding the Glass-Steagall and Bank Holding Company Acts: an Option for Bank Product Expansion
Indiana Law Journal Volume 59 Issue 1 Article 4 Winter 1983 Avoiding the Glass-Steagall and Bank Holding Company Acts: An Option for Bank Product Expansion Rebecca A. Craft Indiana University School of Law Follow this and additional works at: https://www.repository.law.indiana.edu/ilj Part of the Banking and Finance Law Commons Recommended Citation Craft, Rebecca A. (1983) "Avoiding the Glass-Steagall and Bank Holding Company Acts: An Option for Bank Product Expansion," Indiana Law Journal: Vol. 59 : Iss. 1 , Article 4. Available at: https://www.repository.law.indiana.edu/ilj/vol59/iss1/4 This Note is brought to you for free and open access by the Law School Journals at Digital Repository @ Maurer Law. It has been accepted for inclusion in Indiana Law Journal by an authorized editor of Digital Repository @ Maurer Law. For more information, please contact [email protected]. Avoiding the Glass-Steagall and Bank Holding Company Acts: An Option for Bank Product Expansion In the past few years, consumers of financial services have experienced a dramatic upheaval in the financial services industry. Change has been par- ticularly dramatic in the banking sector. The development of new financial products,' increased consumer awareness of investment options, deregulation, and competition from investment and nonbank entities have resulted in in- creased homogenization of financial institutions.2 More importantly, the com- petition from nonbank institutions3 has been particularly instrumental in the resulting push by commercial banks4 to offer a more diverse array of products. The pressure resulting from the encroachments into the banking market has had numerous effects. -
Corporate Decision #98-41 September 1998
Comptroller of the Currency Administrator of National Banks Washington, DC 20219 Corporate Decision #98-41 September 1998 DECISION OF THE OFFICE OF THE COMPTROLLER OF THE CURRENCY ON THE APPLICATION TO MERGE EAGLE VALLEY BANK, DENNISON, MINNESOTA, WITH AND INTO EAGLE VALLEY BANK, NATIONAL ASSOCIATION ST. CROIX FALLS, WISCONSIN August 20, 1998 I. INTRODUCTION On July 10, 1998, Eagle Valley Bank, National Association, St. Croix Falls, Wisconsin ("EVB"), filed an application with the Office of the Comptroller of the Currency ("OCC") for approval to merge Eagle Valley Bank, Dennison, Minnesota ("EVB-MN"), with and into EVB under EVB’s charter and title, under 12 U.S.C. §§ 215a-1, 1828(c) & 1831u(a) (the "Interstate Merger"). EVB has its main office in St. Croix Falls, Wisconsin, and does not operate any branches. EVB-MN has its main office in Dennison, Minnesota, and operates a branch in Stillwater, Minnesota. OCC approval is also requested for the resulting bank to retain EVB’s main office as the main office of the resulting bank under 12 U.S.C. § 1831u(d)(1) and to retain EVB-MN’s main office and branch, as branches after the merger under 12 U.S.C. §§ 36(d) & 1831u(d)(1). Both banks are wholly-owned subsidiaries of Financial Services of St. Croix Falls, Inc. ("Financial"), a multi-state bank holding company headquartered in St. Croix Falls, Wisconsin. In the proposed merger, two of Financial’s existing bank subsidiaries will combine into one bank with branches in two states. No protests or comments have been filed with the OCC in connection with this transaction. -
OCC Proposed Rule on CRA Evaluation Measure Benchmarks
78258 Federal Register / Vol. 85, No. 234 / Friday, December 4, 2020 / Proposed Rules (iii) In the case of a law graduate, he eRulemaking Portal, if possible. Please rulemaking action by the following or she has filed a statement that he or use the title ‘‘Community Reinvestment method: she is appearing under the supervision Act Regulations’’ to facilitate the • Viewing Comments Electronically— of a licensed attorney or accredited organization and distribution of the Regulations.gov Classic or representative and that he or she is comments. You may submit comments Regulations.gov Beta: appearing without direct or indirect by any of the following methods: Regulations.gov Classic: Go to https:// remuneration from the alien he or she • Federal eRulemaking Portal— www.regulations.gov/. Enter ‘‘Docket ID represents; Regulations.gov Classic or OCC–2020–0025’’ in the Search box and (iv) An attorney or accredited Regulations.gov Beta click ‘‘Search.’’ Click on ‘‘Open Docket representative physically accompanies Regulations.gov Classic: Go to https:// Folder’’ on the right side of the screen. the law student or law graduate who is www.regulations.gov/. Enter ‘‘Docket ID Comments and supporting materials can appearing. The accompanying attorney OCC 2020–0025’’ in the Search Box and be viewed and filtered by clicking on or accredited representative must be click ‘‘Search.’’ Click on ‘‘Comment ‘‘View all documents and comments in authorized to practice before EOIR and Now’’ to submit public comments. For this docket’’ and then using the filtering be prepared to proceed with the case at help with submitting effective tools on the left side of the screen. -
Chapter 02 the Impact of Government Policy and Regulation on the Financial- Services Industry
Chapter 02 The Impact of Government Policy and Regulation on the Financial- Services Industry Fill in the Blank Questions 1. The _____________________ was created as part of the Glass-Steagall Act. In the beginning it insured deposits up to $2,500. ________________________________________ 2. The ________________________ is the law that states that a bank must get federal approval in order to combine with another bank. ________________________________________ 3. One tool that the Federal Reserve uses to control the money supply is ________________. The Federal Reserve will buy and sell T-bills, bonds, notes, and selected federal agency securities when they are using this tool of monetary policy. ________________________________________ 4. The __________________________ was created in 1913 in response to a series of economic depressions and failures. Its principal role is to serve as the lender of last resort and to stabilize the financial markets. ________________________________________ © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 5. The McFadden Act and the Douglas amendment which prevented banks from crossing state lines were later repealed by the _______________________________. ________________________________________ 6. The policy of FDIC to levy fixed insurance premiums regardless of the risk involved, led to a/an _____________ problem among banks. The fixed premiums encouraged banks to accept greater risk. ________________________________________ 7. In 1980, the __________________________ was passed, which lifted U.S government ceilings on deposit interest rates in favor of free-market interest rates. -
Revisiting the History of Bank Holding Company Regulation in the United States
2011-2012 THAT WHICH WE CALL A BANK 113 THAT WHICH WE CALL A BANK: REVISITING THE HISTORY OF BANK HOLDING COMPANY REGULATION IN THE UNITED STATES SAULE T. OMAROVA* ** MARGARET E. TAHYAR Introduction ....................................................................... 114 I. Background: Bank Holding Company Regulation in the United States ...................................................................... 117 A. The BHCA Statutory Scheme: Brief Overview ............ 118 B. The Shifting Policy Focus of the BHCA ....................... 120 II. Back to the Beginning: The Birth of the Statute ................ 129 III. Who Is In? The Evolution of the Statutory Definition of “Bank” ............................................................................... 138 A. The 1966 Amendments ................................................. 139 B. The 1970 Amendments ................................................. 142 C. The Competitive Equality Banking Act of 1987 ........... 153 IV. Who Is Out? Exemptions from the Definition of “Bank” under the BHCA ................................................................. 158 A. Industrial Loan Corporations ........................................ 158 B. Credit Card Banks ......................................................... 169 C. Limited Purpose Trust Companies ................................ 173 D. Credit Unions ................................................................ 174 E. Savings Associations ..................................................... 179 V. Looking Back, Thinking Forward: -
Should the Glass-Steagall Act Be Reinstated?
Katerina Schmidt Should Glass-Steagall Be Reinstated? LLM RESEARCH PAPER lAWS 524: International Finacial Law FACULTY OF LAW 2016 Laws 524 300387466 Schmidt CONTENTS Abstract ................................................................................................................................................... 2 Word length ......................................................................................................................................... 2 Subjects and Topics ............................................................................................................................. 2 Introduction............................................................................................................................................. 3 I Difference Between Commercial and Investment Banking ................................................................... 3 A Commercial Banks ........................................................................................................................... 4 B Investment Banks ............................................................................................................................. 5 II Glass-Steagall Act ............................................................................................................................... 6 III Reversing Glass-Steagall or the Gramm-Leach-Bliley Act.............................................................. 10 A Changes instituted Gramm-Leach-Bliley Act ............................................................................... -
Major Banking Laws
Major U.S. Banking Laws The most important laws that have affected the banking industry in the United States are listed below (in chronological order). • National Bank Act of 1864 (Chapter 106, 13 STAT. 99). Established a national banking system and the chartering of national banks. • Federal Reserve Act of 1913 (P.L. 63-43, 38 STAT. 251, 12 USC 221). Established the Federal Reserve System as the central banking system of the U.S. • The McFadden Act of 1927 (P.L. 69-639, 44 STAT. 1224). Amended the National Banking Laws and the Federal Reserve Act and prohibited interstate banking. • Banking Act of 1933 (P.L. 73-66, 48 STAT. 162). Also known as the Glass-Steagall Act. Established the FDIC as a temporary agency. Separated commercial banking from investment banking, establishing them as separate lines of commerce. • Banking Act of 1935 (P.L. 74-305, 49 STAT. 684). Established the FDIC as a permanent agency of the government. It extended the branching provisions of the Banking Act of 1933 to FDIC non-members and required state member banks to obtain Federal Reserve Board approval of new branches. • Soldiers and Sailors Civil Relief Act of 1940 (50 App. U.S.C. § 501). The Soldiers' and Sailors' Civil Relief Act of 1940 (SSCRA), as amended, was passed by Congress to provide protection for individuals entering or called to active duty in the military service. It is intended to postpone or suspend certain civil obligations to enable servicemembers to devote full attention to duty. The Act applies to the United States, the states, the District of Columbia, all U.S. -
The Dodd-Frank Wall Street Reform and Consumer Protection Act: Background and Summary
The Dodd-Frank Wall Street Reform and Consumer Protection Act: Background and Summary Baird Webel, Coordinator Specialist in Financial Economics April 21, 2017 Congressional Research Service 7-5700 www.crs.gov R41350 The Dodd-Frank Wall Street Reform and Consumer Protection Act Summary Beginning in 2007, U.S. financial conditions deteriorated, leading to the near-collapse of the U.S. financial system in September 2008. Major commercial banks, insurers, government-sponsored enterprises, and investment banks either failed or required hundreds of billions in federal support to continue functioning. Households were hit hard by drops in the prices of real estate and financial assets, and by a sharp rise in unemployment. Congress responded to the crisis by enacting the most comprehensive financial reform legislation since the 1930s. Then-Treasury Secretary Timothy Geithner issued a reform plan in the summer of 2009 that served as a template for legislation in both the House and Senate. After significant congressional revisions, President Obama signed H.R. 4173, now titled the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203), into law on July 21, 2010. Perhaps the major issue in the financial reform legislation was how to address the systemic fragility revealed by the crisis. The Dodd-Frank Act created a new regulatory umbrella group chaired by the Treasury Secretary—the Financial Stability Oversight Council (FSOC)—with authority to designate certain financial firms as systemically important and subjecting them and all banks with more than $50 billion in assets to heightened prudential regulation. Financial firms were also subjected to a special resolution process (called “Orderly Liquidation Authority”) similar to that used in the past to address failing depository institutions following a finding that their failure would pose systemic risk. -
The Dodd-Frank Wall Street Reform and Consumer Protection Act Makes Significant Changes to Federal Regulation of the U.S
A Report from the Economic Research Service United States Department www.ers.usda.gov of Agriculture The Dodd-Frank Wall Street AIS-89 Reform and Consumer November 2010 Protection Act Changes to the Regulation of Derivatives and Their Impact on Agribusiness Michael K. Adjemian, [email protected] Gerald E. Plato, [email protected] Abstract The Dodd-Frank Wall Street Reform and Consumer Protection Act makes significant changes to Federal regulation of the U.S. over-the-counter (OTC) derivatives markets. Contents With the goals of improving market transparency and reducing systemic default risk, the act calls for swaps to be centrally cleared and traded on an exchange or execution Introduction ..........................2 facility and for dealers and major participants that trade these derivatives to be subject Derivatives Markets .............3 to collateral requirements. Although the act exempts certain types of swaps and traders Derivatives in U.S. from these clearing, collateral, and trading venue requirements in order to preserve Agriculture ........................7 market efficiency, all swaps will be subject to new recordkeeping and reporting rules. Important Dodd-Frank Reforms In this article, we review some important features of the new law and discuss their for Agribusiness ...............8 potential impact on agribusiness, much of which will depend on how the rules are Regulation of Swaps ........8 written and implemented by regulators. Clearing and Collateral Requirements ...............10 Keywords: financial reform law, -
The Wall Street Reform Act Aims to Not Only Regulate the Financial Markets While Protecting Consumers from Financial Malpractice
SB-31 This act builds off of both Dodd-Frank and Glass-Steagall by creating financial transparency. The Wall Street Reform Act aims to not only regulate the financial markets while protecting consumers from financial malpractice. IN THE SENATE OF THE AMERICAN LEGION BOYS NATION Mr. Hamdan of Ohio introduced the following bill; A BILL This act builds off of both Dodd-Frank and Glass-Steagall by creating financial transparency. The Wall Street Reform Act aims to not only regulate the financial markets while protecting consumers from financial malpractice. Be it enacted by The American Legion Boys Nation Senate assembled, SECTION 1. SHORT TITLE. This Act may be cited as the "The Wall Street Reform Act". SECTION 2. The Volcker Rule (1) Be it enacted a complete reinstallment of the Volcker Rule: (A)Banks may act as agents for their customers in the purchase and sale of securities without recourse, but it shall be prohibited for banks from dealing in (purchasing or selling) securities for their own accounts. Filename: 2019_oh_bill_hamdan_adam_829.pdf Page 1/3 (B)Any and all action of proprietary trading shall be prohibited (C) Any financial institution cannot invest in, or sponsor: hedge funds, private equity funds, or other trading operations for their use. (D) Repeated violations shall be charged and observed at the discretion of the Federal Reserve Section 3. Firewalls (2) Firewalls, both legal and regulatory, to help separate a company's banking and nonbanking activities shall be implemented to protect bank safety and prevent conflict-of-interest abuses under the jurisdiction of the federal reserve by promoting: (A) Legal separation so that banks are not legally liable for their affiliates' debts (B) Economic separation that prohibits banks from excessively aiding their affiliates (C) Psychological separation that keeps the public from perceiving banks and their affiliates as one entity. -
FEDERAL RESERVE SYSTEM the First 100 Years
FEDERAL RESERVE SYSTEM The First 100 Years A CHAPTER IN THE HISTORY OF CENTRAL BANKING FEDERAL RESERVE SYSTEM The First 100 Years A Chapter in the History of Central Banking n 1913, Albert Einstein was working on his established the second Bank of the United States. It new theory of gravity, Richard Nixon was was also given a 20-year charter and operated from born, and Franklin D. Roosevelt was sworn 1816 to 1836; however, its charter was not renewed in as assistant secretary of the Navy. It was either. After the charter expired, the United States also the year Woodrow Wilson took the oath endured a series of financial crises during the 19th of office as the 28th President of the United and early 20th centuries. Several factors contributed IStates, intent on advocating progressive reform to the crises, including a number of bank failures, and change. One of his biggest reforms occurred which generated waves of bank panics and on December 23, 1913, when he signed the Federal economic instability.2 Reserve Act into law. This landmark legislation When Jay Cooke and Company, the nation’s created the Federal Reserve System, the nation’s largest bank, failed in 1873, a panic erupted, leading central bank.1 to runs on other financial institutions. Within months, the nation’s economic problems deepened as silver A Need for Stability prices dropped after the Coinage Act of 1873 was Why was a central bank needed? The nation passed, which dampened the interests of U.S. silver had tried twice before to establish a central bank miners and led to a recession that lasted until 1879. -
The Dodd-Frank Wall Street Reform and Consumer Protection Act July 2010 the DODD-FRANK WALL STREET REFORM and CONSUMER PROTECTION ACT
Understanding the New Financial Reform Legislation: The Dodd-Frank Wall Street Reform and Consumer Protection Act July 2010 THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT For more information about the matters raised in this Legal Update, please contact your regular Mayer Brown contact or one of the following: Scott A. Anenberg Charles M. Horn +1 202 263 3303 +1 202 263 3219 [email protected] [email protected] Michael R. Butowsky Jerome J. Roche +1 212 506 2512 +1 202 263 3773 [email protected] [email protected] Joshua Cohn David R. Sahr +1 212 506 2539 +1 212 506 2540 [email protected] [email protected] Thomas J. Delaney Jeffrey P. Taft +1 202 263 3216 +1 202 263 3293 [email protected] [email protected] Table of Contents Index of Acronyms / Abbreviations .................................................................................................xv The Dodd-Frank Wall Street Reform and Consumer Protection Act ................................................ 1 A. Summary ................................................................................................................... 1 B. A Very Brief History of the Legislation ...................................................................... 1 C. Overview of the Legislation ...................................................................................... 2 1. Framework for Financial Stability ................................................................. 2 2. Orderly Liquidation Regimen .......................................................................