What is commercial banking?
Accepts deposits, offers checking account services, makes business, personal and mortgage loans. Commercial banks make money by providing loans and earning interest income from these loans
FDIC
Government corporation providing deposit insurance to depositors in the U.S commercial banks and savings institutions
Federal reserve
US central bank system, responsible for two functions: macro economic stability (monetary policy) and financial stability (liquidity provisions)
Comptroller of the currency
Charters and examines the books of federally chartered commercial banks and imposes restrictions on assets they can hold.
Department of Justice
Federal department responsible for enforcing federal laws. Focus on criminal enterprise, often conducted by a person not a corporate entity. Enforcement of 'really bad mistakes that send you to prison'
SEC
Protect investors, maintain orderly markets, facilitate capital information
Commodities Futures Trading Commission
Regulates procedures for trading in futures markets
State Boards and Commissions
Regulating state-chartered banks, ensuring fair market place for all parties involved. Approving banks that want to start a new charter.
National Bank Act
legislation passed in 1863 to make banking safer for investors. Its provisions included a system of federally chartered banks, new requirements for loans, and a system for the inspection of banks
Glass-Steagall Act
(Banking Act of 1933) - Established the Federal Deposit Insurance Corporation and included banking reforms, some designed to control speculation. Separated investment and commercial banking activities.
Securities Exchange Act of 1934
An act that regulates the trading of securities such as stocks and bonds in the secondary market
Banking Act of 1935
Strengthened the Federal Reserve. Earlier legislation contained emergency expedients and regulatory experiments that Congress approved on a regular basis. This finalized these reforms.
Gramm-Leach-Bliley Act
requires financial institutions to ensure the security and confidentiality of customer data
USA Patriot Act
law passed due to 9/11 attacks; sought to prevent further terrorist attacks by allowing greater government access to electronic communications and other information; criticized by some as violating civil liberties
Sarbanes-Oxley Act
A law passed by Congress that requires the CEO and CFO to certify that their firm's financial statements are accurate.
Dodd-Frank Act
a law enacted in the aftermath of the financial crisis of 2008-2009 that strengthened government oversight of financial markets and placed limitations on risky financial strategies such as heavy reliance on leverage