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 firstname.lastname@example.org.
Here’s an errata sheet for the second edition.
Updated: July 20, 2021
The Financial Response to the COVID-19 Pandemic
As 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
Over 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.
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
- 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.
2.1. The Impact of Charter Choice
- Lacewell v. Office of the Comptroller of the Currency, No. 19-4271 (2d Cir. 2021)
- Statement of Michael J. Hsu, Acting Comptroller of the Currency, before the House Financial Services Committee (May 19, 2021)
- Federal Reserve Board, FDIC, and OCC, “Proposed Interagency Guidance on Third-Party Relationships: Risk Management” (July 19, 2021)
- Joint Resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Office of the Comptroller of Currency relating to “National Banks and Federal Savings Associations as Lenders,’” Public Law No: 117-24, 117th Cong. (2021)
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
- Basel Committee on Banking Supervision, Consultative Document, “Prudential treatment of cryptoasset exposures” (Sept. 10, 2021)
- Davis Polk Visual Memo, “Basel Committee Consultation on Prudential Treatment of Cryptoassets” (June 17, 2021)
HLS Case Studies for Part II
- HLS Case Study – The OCC’s FinTech Charter: Testing the Scope of the OCC’s Chartering Powers - Aug. 2017 – 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 - Fintech Charters - May 2020 - Senate staffers examine the case for legislative changes with respect to Fintech chartering ahead of a congressional hearing.
- 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.
- HLS Case Study - Strategic Options and Legal Risks for Elite ReFi, Inc. June 2020 - A marketplace lender attempts to negotiate legal uncertainties arising out of the Madden litigation and its aftermath.
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
- HLS Case Study - Ames’ Auto Insurance Regulations - Racial Disparity - Aug. 2017 -- Case study could be used in connection with Chapter 3.2 to explore racial disparities in automobile insurance rates.
4.1. Introduction to the Regulation of Securities Firms
4.2. Securities Firms and the Retail Investor
- Rey Mashayekhi, “Robinhood IPO: Is the most anticipated listing of the year a buy—or a pass?,” Fortune (July 8, 2021)
4.3 Securities Firms in Corporate Transactions
4.4. Exchanges and Trading
HLS Case Studies for Part IV
- HLS Case Study - Lending Club - May 2020 -- 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 April 2020 – 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.
- HLS Case Study - Market Manipulation: Definitional Approaches - June 2020 - SEC staff asked to analyze the potential changes to defining manipulation in light of problems caused by algorithmic trading and to assess administrative law options for implementing such changes.
- HLS Case Study - Algorithmic Trading Strategies - May 2020 - The CFTC Division of Market Oversight examines problems associated with algorithmic trading and a possible initiative of the CFTC to require firms to disclose confidential information about their algorithms.
- 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.
5.1. The Consumer Financial Protection Bureau
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 Chapter 5.1 to explore cost-benefit analysis at the CFPB:
- HLS Case Study - Cost-Benefit Analysis at the Consumer Financial Protection Bureau - Part 1 - Feb. 2014
- HLS Case Study - Cost-Benefit Analysis at the Consumer Financial Protection Bureau - Part 2 - Feb. 2014
- HLS Case Study - Cost-Benefit Analysis at the Consumer Financial Protection Bureau - Part 3a - Feb. 2014
- HLS Case Study - Cost-Benefit Analysis at the Consumer Financial Protection Bureau - Part 3b - Feb. 2014
- HLS Case Study - Cost-Benefit Analysis at the Consumer Financial Protection Bureau - Part 4 - Feb. 2014
- 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 - April 2020– 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.
- HLS Case Study - Employee Benefits - Emergency Savings Account - April 2020 - A non-profit organization evaluates the merits of and legal considerations relevant to three different initiatives designed to encourage employers to increase the emergency savings of their employees.
- HLS Case Study - Regulating Consumer Permissioned Access to Financial Data - June 2020 - Policy advisers to a presidential campaign consider how to address the rights of consumers to control the sharing of personal financial data with Fintech firms in the face of restrictive practices put in place by many legacy financial firms.
- HLS Case Study - CLOUD Act Enforcement - April 2020 - The U.S. Justice Department looks into data privacy issues when seeking to obtain information from Fintech firms with subsidiaries operating in the European Union and covered by the General Data Protection Regulation (GDPR).
- HLS Case Study - Machine Learning in the Underwriting of Consumer Loans - March 2020 - The CFPB considers how fair lending laws should be applied to Fintech lenders that employ machine learning and other kinds of algorithms to make lending decisions.
6.1. Regulation of Holding Companies
6.2. Regulation of Bank Market Structure and Consolidation
- Executive Order on Promoting Competition in the American Economy (July 9, 2021)
- Davis Polk Client Insight, “President Biden signs Executive Order on promoting competition” (July 12, 2021)
- Submission of Wachtell, Lipton, Rosen & Katz to the Antitrust Division of the Department of Justice as to Revisions to the 1995 Banking Guidelines (Oct. 15, 2020)
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.
7.1. Introduction to Payment Systems
- President’s Working Group on Financial Markets, “Statement on Key Regulatory and Supervisory Issues Relevant to Certain Stablecoins” (Dec. 23, 2020)
7.2. Examining Critical Issues in Payment Systems
- Remarks by Randal Quarles on CBDCs at the 113th Annual Utah Bankers Association Convention Sun Valley, Idaho (June 28, 2021)
- FDIC, “Request for Information and Comment on Digital Assets” (May 17, 2021)
- Financial Stability Board, Consultative Document, “Targets for Addressing the Four Challenges of Cross-Border Payments” (May 31, 2021)
- Bank for International Settlements, “Annual Economic Report: III. CBDCs: an opportunity for the monetary system” (June 23, 2021)
HLS Case Studies for Part VII
- HLS Case Study – Digital Currencies - June 2020 – 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.
- HLS Case Study - Mobile Payments for the Developing World - May 2020 - The World Bank considers what advice they should give to developing countries interested in developing new mobile payment systems.
- HLS Case Study - Anti-Money Laundering and Blockchain Technology - May 2020 - FinCen staff consider proposals to relax regulatory requirements to allow for the use of distributed ledger technologies to reduce costs and increase efficiency of regulated firms.
8.1. Corporate Governance
HLS Case Studies for Part VIII
- HLS Case Study - Wells Fargo Corporate Governance - Oct. 2017 -- Case study could be used in connection with Chapters 8.1 and 8.2 to explore the appropriateness of the Federal Reserve's bringing formal enforcement actions against the directors of Wells Fargo.
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
- HLS Case Study - Future of Affiliate Transaction Restrictions and the Federal Reserve's Emergency Intervention Authority - Oct. 2017 -- Case study could be used in connection with Chapter 9.3 to explore the authority of federal authorities to intervene in future financial emergencies. Also useful for exploring the authority of federal authorities to waive restrictions of sections 23A and 23B, discussed earlier in Chapter 2.3.
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.
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.
12.2. Mortgage Markets and the Government-Sponsored Enterprises
- Collins v. Yellen, 594 U.S. ___ (2021)
- Letter Agreement to Amendments to the Preferred Stock Purchase Agreements between the FHFA, Treasury, and Freddie Mac (Jan. 14, 2021)
- Letter Agreement to Amendments to the Preferred Stock Purchase Agreements between the FHFA, Treasury, and Fannie Mae (Jan. 14, 2021)
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. June 2020 -- 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.