Are Banks Special?

Read the modules and some of the other articles, watch the videos, and do some of the web-based exercises for Assignment #4.
The first night of Dr. Furfero’s Banking Law class, the professor walked in and asked the students: Are banks special? It turns out that banks are the most heavily regulated firms, not only in the US, but around the world. Why? Explain. The US has a history of on-again, off-again regulation. The last major piece of banking legislation was the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which attempted to reregulate what the Gramm-Leach-Bliley Financial Services Modernization Act of 1999 deregulated from the Glass-Steagall Banking Act of 1933. Now, on May 24, 2018, President Donald Trump signed the biggest rollback of bank regulations since the global financial crisis. The measure designed to ease rules on all but the largest banks. Proponents say the legislation will lift burdens unnecessarily put on small and medium-sized lenders by the Dodd-Frank financial reform act and boost economic growth. Opponents argue that the changes could open taxpayers to more liability if the financial system collapses or increase the chances of discrimination in mortgage lending. Where do you stand on regulation of banking? Explain.






























Sample Solution