This is a three credit course that provides an introduction to the nature of the business of financial institutions and the rationale and objectives of financial regulation. The course covers the historical development of the nation's monetary system, as well as the various types of financial institutions, including commercial banks, the securities industry, investment companies such as mutual and hedge funds, and the insurance industry.
This course will consider important regulatory issues related to financial institutions, including the chartering process, antitrust and merger law, and the regulation of organizational structures and the particular range of activities of each institution. There are a number of recurring themes throughout this course: the rise of inter-industry competition and the globalization of financial markets; financial innovation and the proliferation of new financial instruments; and the reform of regulatory structures. Students will analyze the various policy implications stemming from recent legal, regulatory, and marketplace reforms, including the Financial Modernization Act of 1999, the integration of financial markets and the liberalization of banking and finance.