PREFACE

     This site presents 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 are organized by chapter and 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. For the 2020-21 academic year, we have added an overview of The Financial Response to the COVID-19 Pandemic. This overview summarizes the key public responses to the pandemic and includes links to the growing academic literature on financial aspects of the crisis responses. The overview also includes in the footnotes cross-references to the various section of the textbook where relevant legal regimes are discussed in greater detail.

     The authors are currently at work on the third edition of the textbook, which will be current through December 2020 and available for review or purchase in Spring 2021. Among other things, the third edition will include an expanded Part VIII with additional materials on supervision, compliance, and enforcement. We will also be expanding our treatment of Fintech issues and integrating our overview of the COVID-19 pandemic into the text, as well as more routine updates for recent developments.

     If you have any suggestions about additional materials that should be posted here or included in the third edition, please feel free to contact Howell Jackson at hjackson@law.harvard.edu.

Here’s an errata sheet for the second edition.

     Good luck.

Updated: August 1, 2020

 

The Financial Response to the COVID-19 Pandemic

  Pandemic Supplement PageAs the COVID-10 Pandemic will undoubtedly be posing important questions of financial regulation during the 2020-2021 academic year and beyond, we have prepared an overview of the financial responses to the pandemic available on SSRN, Michael S. Barr, Howell E. Jackson, and Margaret E. Tahyar The Financial Response to the COVID-19 Pandemic. It includes references to the growing literature on the pandemic as well as a number of resources that will be updated as the year progresses.  While instructors could use this overview in a number of different ways, one approach would be to assign the document for preliminary review early in the semester and then to return to it from time to time as you cover specific topics that are affected by the pandemic.   

 

 

Fintech Law: The Case Studies

 Fintech Law The Case Studies Front CoverOver the past two years, two of the authors – Howell Jackson and Meg Tahyar – have been teaching a Fintech module at Harvard Law School and have developed a series of fourteen case studies that offer students an opportunity to explore the kinds of challenges that technological developments are posing for practicing attorneys in the field of financial regulation. These case studies have now been published in an eBook, Howell E Jackson & Margaret E. Tahyar, Fintech Law: The Case Studies (July 2020). There is also a Teacher’s Manual available to instructors upon request. Additional case studies on other topics of financial regulation are available from the Harvard Law School Library. All of these case studies are also listed below following the relevant chapters of the textbook.

    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

    1.4. The Regulatory Perimeter 

    1.5. A Tour of Financial Statements

     

    HLS Case Studies for Part I

    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

    2.3. Portfolio Diversification and Affiliate Transactions

    2.4. Deposit Insurance

    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

    PART III. INSURANCE

    3.1. Introduction to Insurance Regulation

    3.2. The Protection of Consumers in Insurance Regulation

    3.3. The Role of Federal Government in Insurance Regulation

    HLS Case Studies for Part III

     

    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

    In chapter 4.2, we explored the use of arbitration to resolve investor disputes with respect to securities firms. In recent years, proposals have been made to extend arbitration to securities litigation by corporate shareholders:

    4.4. Exchanges and Trading

    Recent developments related to SEC Market Reforms:

     

    HLS Case Studies for Part IV

    PART V. CONSUMER PROTECTION AND THE CFPB

    5.1. The Consumer Financial Protection Bureau

    Notices of Proposed Rulemaking on Payday Lending and Prepaid Cards:

    5.4. Comparing Consumer Protection Models Across Sectors

     

    HLS Case Studies for Part V

     

    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

    PART VII. PAYMENT SYSTEMS

    7.1. Introduction to Payment Systems

    7.2. Examining Critical Issues in Payment Systems

     

    HLS Case Studies for Part VII

     

    PART VIII. CORPORATE GOVERNANCE, SUPERVISION, AND ENFORCEMENT

    8.1. Corporate Governance

    8.2. Supervision and Enforcement

     

    HLS Case Studies for Part VIII

     

    PART IX. LENDER OF LAST RESORT AND RESOLUTION

    9.1. Lender of Last Resort

    9.2. Traditional Toolkit for Bank Failures

    9.3. After the Crisis: From Orderly Liquidation to Bail-In

     

    HLS Case Studies for Part IX

    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

    For an overview of fiduciary duties with respect to mutual funds as well as efforts to distributed functionally similar financial products subject to less onerous regulatory requirements, see Howell E. Jackson, A System of Fiduciary Protections for Mutual Funds, in Fiduciary Obligations of Business (Arthur Laby & Jacob H. Russell, eds.) (Cambridge University Press, forthcoming 2020)

    10.4. The Regulation of Retirement Savings

    10.5. The Regulation of Hedge Funds and Other Private Funds

     

    HLS Case Studies for Part X

    PART XI. DERIVATIVES AND RATE MARKETS

    11.1. Overview of Derivatives

    11.2. Derivatives: Market Infrastructure

     

     

    11.3. Derivatives: Business Conduct and Market Integrity

     

    HLS Case Studies for Part XI

    HLS Case Study - Regulating Crypto Assets: Securities and Commodities - April 2020 - An attorney working at the Bipartisan Policy Center explores the regulation of digital assets, attempting to develop a policy position with respect to SEC and CFTC jurisdiction over these products.

    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