Finance and Business Economics 524

The Financial System 2005

Handouts for Classes:

Week 4 - September 14, 2005

(1) The "Gramm-Leach-Bliley Act of 1999" is a major piece of financial services legislation promising major changes in the financial system.  For class, please look over the following provisions of the law to find out what changes are being legislated in order to gain an appreciation of how changes in financial regulation look in practice.  You may want to print out the most important pages for discussion:

   Section 103 - Starting on page 5

   Section 104 - Starting on page 15

   Section 115 - Starting on page 34

   Section 201 - Starting on page 48

   Section 211 - Starting of page 59

   Section 312 - Starting on page 80

(2) Press Releases on the Basel II Capital Accord: (1) May 11, 2004; and (2) June 26, 2004 (both .htm documents) from the Bank for International Settlements (BIS), provide an overview of the main provisions of the new risk-based capital requirements deliberated for banks starting in 2006. Review to gain an idea of the major issues and the BIS process.