An Economic Analysis of Bank Regulatory Reform: The Financial Institutions Safety and Consumer Choice Act of 1991

Michael Klausner
This Article analyzes the interaction between the bank regulatory system and the market for financial services and examines the ways in which bank regulation affected profitability and risk-taking both before and after 1980. The Article focuses on the range of business strategies available to banks during each period and the incentives operating on bank shareholders and managers in selecting from available strategies. The Article suggests that although banks have always…

America’s Banking System: The Origins and Future of the Current Crisis

Jonathan R. Macey and Geoffrey P. Miller
This Article explains why contraction of commercial banking—as defined, organized, and conducted under federal supervision since the 1930s—is inevitable over time. We show how technological innovation and improvements in the primary and secondary trading markets for financial products have led to an irreversible decline in the demand for the services commercial banks are permitted to offer. We then show why the Bush Administration’s reform proposals, although dramatic, far-reaching, and, in…

“Financial Services Modernization:” A Cure for Problem Banks?

Robert G. Boggess II and Kirk K. Van Tine
On February 5, 1991, after consulting federal financial regulatory agencies and other interested governmental parties, the Department of the Treasury transmitted to Congress its report: Modernizing the Financial System: Recommendations for Safer, More Competitive Banks.” The Treasury Report concludes that four major problems confront the U.S. banking system: (1) reduced bank competitiveness and financial strength, caused by outdated legal restrictions that prevent banks from responding to changing financial markets and…

Arresting Wife Batterers: A Good Beginning to Stopping a Pervasive Problem

Jessica L. Goldman