Preface

     This site offers free supplemental materials for Barr, Jackson & Tahyar, Financial Regulation: Law and Policy (Foundation Press, 2d ed., 2018). For the most part, the materials posted here cover important developments since the second edition went to press in the first quarter of 2018.  In a limited number of cases, we also include older documents that some instructors may wish to emphasize in their courses.  We also include a number of HLS Case Studies on Financial Regulation, which are described in  Memorandum on Case Studies for Second Edition of Financial Regulation - April 2018.  The posting of materials follows the structure of the textbook, with case studies posted at the end of the part of the book with which each case study is most closely associated.

     If you have any suggestions about additional materials that should be posted here or problems downloading materials or ideas about the textbook or case studies, please feel free to contact Howell Jackson at hjackson@law.harvard.edu.

     Here’s an errata sheet for the second edition.

     Good luck.

Updated:  June 25, 2019

 

 

PART I. INTRODUCTION TO FINANCIAL REGULATION

1.1. Finance Today

1.2. The History of U.S. Financial Regulation: A Thematic Overview

1.3. Regulatory Frameworks

Additional readings on proposals for reforming regulatory strutures in the United States:

Additional cases and commentary addressing the constitutionality of the CFPB (and other single-headed agencies):

1.4. The Regulatory Perimeter

CRS Report, Federal Preemption in the Dual Banking System (May 17, 2019)

1.5. A Tour of Financial Statements

 

HLS Case Studies for Part I

HLS Case Study - Federal Preemption of State Consumer Protection - Aug. 2017-- Case study exploring preemption after the Dodd-Frank Act; could be used as an extension of discussion in Chapter 1.4 or in connection with Part V. 

HLS Case Study - Unidentified Financial Institutions - Apr. 2018 -- Exercise on balance sheets and income statements that could be used in connection with Chapter 1.5 to explore basic concepts of accounting.

 


 

PART II. INSURED DEPOSITORY INSTITUTIONS

2.1. The Impact of Charter Choice

In July of 2018, the Treasury Department issued a report on FinTech and Innovation, prompting a number of related actions and raising questions about legal challenges dismissed previously on procedural grounds.

2.2. Activities Restrictions and the Business of Banking

Davis Polk Visual Memo, Cannabis Banking (Apr. 16, 2019)

2.3. Portfolio Diversification and Affiliate Transactions

 

2.4. Deposit Insurance

FDIC Brokered Deposits Proposal (Feb. 6, 2019)

2.5. Capital Regulation: An Introduction

 

2.6. Capital Regulation: Pre-Financial Crisis to Basel II

 

2.7. Capital Regulation: Basel III and Beyond

On May 24, 2018, President Trump signed into law the "Economic Growth, Regulatory Relief, and Consumer Protection Act," which, among other things provided regulatory relief for smaller and certain regional banking organizations.

 

HLS Case Studies for Part II

HLS Case Study – Fintech Charter 2019 - Jan. 2019 – This case study could be used in connection with Chapter 2.1 to explore the chartering authority of the OCC.  Explores the issue from the perspective of Senate Banking Committee staff.

HLS Case Study - Exercise on Alternative Strategies for Depository Institutions  -- Exercise could be used in connection with Chapter 2.2 to explore incentives of bank shareholders with respect to the allocation of bank assets.

 

 

PART IV. SECURITIES FIRMS AND CAPITAL MARKETS

4.1. Introduction to the Regulation of Securities Firms

4.2. Securities Firms and the Retail Investor

The fiduciary duty rule promulgated by the Obama Administration's Department of Labor has been a focus of criticism by the Trump Administration and was eventually invalidated by the Fifth Circuit in Spring of 2018. Shortly thereafter the SEC intervened with a related set of proposals, including a proposed Regulation Best Interest. These postings summarize those developments:

4.3 Securities Firms in Corporate Transactions

 

4.4. Exchanges and Trading

Recent developments related to SEC Market Reforms:

 

HLS Case Studies for Part IV

HLS Case Study - Lending Club - Aug. 2017 -- This case study could be used in connection with Chapter 4.1 to explore the definition of securities under federal securities law.

HLS Case Study – Robo-Advising (Jan. 2019) – This case study could be used in connection with Chapter 4.2 to explore the application of traditional broker-dealer regulation to a new robo advisers. Explores legal issues from the perspective of SEC, FINRA, and Treasury Department staff.

 

 

PART V. CONSUMER PROTECTION AND THE CFPB

5.1. The Consumer Financial Protection Bureau

Judicial decisions addressing the constitutionality of the CFPB structure:

Recent statements of Acting Director Mulvaney:

5.2. Mortgages

 

5.3. Consumer Financial Products and Services

5.4. Comparing Consumer Protection Models across Sectors

 

HLS Case Studies for Part V

This set of case studies could be used in connection with Chatper 5.1 to explore cost-benefit analysis at the CFPB.

HLS Case Study - Consumer Financial Protection Bureau - Responding to the PHH Litigation - Aug. 2017 -- This case study could be used in connection with Chapter 5.1 to explore the immediate aftermath of the D.C. Circuit's initial decision in the PHH v. CFPB litigation.

HLS Case Study – Robo-Advising - Jan. 2019 – This case study could be used in connection with Chapter 4.2 to explore the application of traditional broker-dealer regulation to a new robo advisers. Explores legal issues from the perspective of SEC, FINRA, and Treasury Department staff.

 

 

PART VI. FINANCIAL CONGLOMERATES

6.1. Regulation of Holding Companies

6.2. Regulation of Bank Market Structure and Consolidation

 

6.3. Regulating Systemic Risk

6.4. Foreign Banks in the United States and U.S. Banks Abroad

 

HLS Case Studies for Part VI

HLS Case Study - Wal-Mart and Banking - Aug. 2017 -- Case study could be used in connection with Chapter 6.1 to explore the arguments for and against the separation of banking and commerce.

 

PART VII. PAYMENT SYSTEMS

7.1. Introduction to Payment Systems

7.2. Examining Critical Issues in Payment Systems

 

HLS Case Studies for Part VII

HLS Case Study - Bank Secrecy - Aug. 2017 -- Case study could be used in connection with Chapter 7.2 to explore the potential use of blockchain technology to improve BSA compliance.

HLS Case Study – Cryptocurrency - Jan. 2019 – This case study could be used in connection with Part VII to explore the issues facing the Federal Reserve Board in consider two different options for issuing a digital currency. 

 

PART X. MUTUAL FUNDS AND OTHER INVESTMENT VEHICLES

10.1. Introduction to Asset Management and Its Regulation

10.2. Mutual Funds: Fiduciary Duties and Structural Restraints

10.3. Mutual Funds: Disclosure and Its Limitations

10.4. The Regulation of Retirement Savings

10.5. The Regulation of Hedge Funds and Other Private Funds

 

HLS Case Studies for Part X

HLS Case Study - Closed-End Fund Regulation - Aug. 2017 -- Case study could be used in connection with Chapter 10.3 to explore the value of disclosures with respect to closed-end funds.

 

PART XII. SHADOW BANKING

12.1. Securitization

12.2. Mortgage Markets and the Government-Sponsored Enterprises

12.3. Money Market Funds

 

12.4. Short-Term Wholesale Funding

HLS Case Studies for Part XII

HLS Case Study - Asset Securitization after Madden - Aug. 2017 -- Case study could be used in connection with Chapter 12.1 to explore the implications of the Madden decision on asset securitization.

HLS Case Study on Strategic Options and Legal Risks for Elite ReFi, Inc. (Jan. 2019)  -- This case study could be used in connection with Chapter 12.1 to explore the implications of the Madden decision for peer to peer lenders and other parties.  Approaches the issues from the perspective of a private practitioner.