March 20, 2013
Get the Basics
Registration and Coffee
Overview of Bank Regulatory Structure and Law
Karol K. Sparks, Barack Ferrazzano Kirschbaum & Nagelberg LLP
This class provides a chronological review of the major banking legislation from the passage of the National Bank Act in 1864 through the Dodd-Frank Act with particular emphasis on the legislation that created the federal banking agencies and the mandate of those agencies. The class will include a review of the organization and structure of each of the agencies, a brief discussion of the dual banking system and a description of the role of state bank regulators.
Industry Structure, Bank and Holding Company Powers and Regulatory Themes
Lissa L. Broome, University of North Carolina School of Law and the Center for Banking and Finance
This class explores the structure of the industry and the basic powers limitation so the various entities in the structure. The dual banking system and preemption are highlighted. The session describes the regulatory themes that provide the basis for U.S. bank regulation, including limited entry, the separation of banking and commerce, the protection of the insured depository institution, the implied federal subsidy of deposit insurance, limitations on size and other themes are developed in a way that allows the class to move seamlessly to an application of those themes to the debate on financial remedial efforts to address the market turmoil of 2008.
Understanding a Bank through its Financial Statements
Lissa L. Broome, University of North Carolina School of Law; Scott A. Cammarn, Cadwalader, Wickersham & Taft LLP; Mark C. Kanaly, Alston + Bird, LLP; Eugene M. Katz, Wells Fargo & Company; Saule Omarova, University of North Carolina School of Law; Karol K. Sparks, Barack Ferrazzano Kirschbaum & Nagelberg LLP
This class will analyze the basic bank balance sheet and earnings statement with a view to understanding how banks gather funds, redeploy them and earn money. Emphasis will be placed on current events that have reshaped bank balance sheets and the causes of such changes. The guidelines of the federal banking regulators governing the measurement of capital held by banking organizations will play a central role in the class. The session also includes a detailed discussion of the proposed Basel IIII capital guidelines and the changes wrought by the Dodd-Frank Act. The use of capital in other safety and soundness regulations sets the stage for the classes on affiliate transactions and lending.
Prudential Limitations and Safety and Soundness
Scott A. Cammarn, Cadwalader, Wickersham & Taft LLP
This class provides an overview of all of the various types of regulations that govern lending by banks, with a particular focus on the safety and soundness regulations of loans to one borrower and loans to insiders under Regulation O of the Federal Reserve Act. Sections 23A and 23B of the Federal Reserve Act and the Federal Reserve’s Regulation W on affiliate transactions are perhaps the key safety and soundness measures of the Federal Reserve to protect banks, and this class will address this key structure in detail.
Activity and Investment Limitations
Saule Omarova, University of North Carolina School of Law
This class focuses on an overview of permitted financial activities, including those that are financial in nature at the holding company and those that are the business of banking in the national bank. The securities activities are broken down into permissible underwriting and dealing and investment and agency. The class closes with a survey of permissible controlling and non-controlling investments.
Supervision, Examination and Enforcement
Eugene M. Katz, Wells Fargo & Company
The supervisory approach of the federal banking regulators and their exam process is markedly different from the more traditional interaction of investment banks with the SEC. This class explores those differences in approach, in the exam process itself, in any remedial actions to be taken to address exam issues and, finally, in the use of certain formal and informal enforcement tools in public or non-public proceedings. There is a practical emphasis on dealing with examiners, preparing for exams by the bank regulators and in responding to exam findings and criticisms.
Deposit Insurance, Failure and Resolution
Mark C. Kanaly, Alston + Bird, LLP
This class involves a discussion of regulations governing insured bank deposits and the cost of deposit insurance. It then provides a detailed review of the failure and resolution process from the point of an adverse exam and a formal or informal enforcement action to the point of appointment of the FDIC as receiver for a bank and the alternatives available to the FDIC to resolve a failing bank. There will be some comparison and contrast of the FDIC receivership for insured depository institutions, the bankruptcy process for the parent holding company and other corporate affiliates and the Orderly Liquidation Authority of the Dodd-Frank Act.