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Full-Text Articles in Law
Tragedy, Irony, And Protectionism After Bcci: A Three-Act Play Starring Maharajah Bank, Raj Bhala
Tragedy, Irony, And Protectionism After Bcci: A Three-Act Play Starring Maharajah Bank, Raj Bhala
Faculty Publications
Post-BCCI legal developments regarding the regulation of foreign banks raise serious concerns of protectionism. The Foreign Bank Supervision Enhancement Act of 1991 and revisions to Federal Reserve Regulation K impose significant new legal burdens on foreign banks seeking to establish a physical presence in the U.S. The new legal regime reflects a tragic sacrifice of the principle of free trade in banking services in order to placate a fear of "bad" foreign banks. Ironically, the sacrifice of this principle by Congress and the Federal Reserve is incongruous with efforts of the United States Trade Representative (USTR). The USTR has negotiated …