Banking and Finance Law Commons^™

Banking Law, Penny A. Hazelton

Chapters in Books

• Introduction
• Federal Law
• State Law
• Federal Regulatory Framework
• Office of the Comptroller of the Currency
• Office of Thrift Supervision
• Board of Governors of the Federal Reserve System
• Federal Deposit Insurance Corporation
• Resolution Trust Corporation
• Federal Housing Finance Board
• Federal Home Loan Bank System
• State Regulatory Framework
• Additional Research Sources
• Appendices

Microfinance And Poverty Alleviation: Lessons From Indonesia's Village Banking System, Yoko Miyashita

Washington International Law Journal

Indonesia needs an aggressive poverty reduction strategy to counter the 1997 Asian financial crisis, which has propelled millions of its citizens into poverty. Microfinance is a proven method of reducing poverty and has been successfully used within Indonesia in government-supported programs. In addition to continuing its state-run microfinance programs, Indonesia should support increased non-governmental organization ("NGO") participation in microfinance programs by permitting NGOs to conduct the full range of activities of a state-run microfinance program. Such a move would help to ensure that microfinance services reach people with the least access to the formal financial sector.

Secrets And Lies? Swiss Banks And International Human Rights, Anita Ramasastry

Articles

This Article explores the relationship of Swiss banks and their tradition of bank secrecy to the activities of a particular group of depositors: war criminals and other human rights violators. The Article focuses on litigation brought in U.S. courts by plaintiffs seeking access to Swiss bank deposits made by the Nazis and Ferdinand Marcos. The Article examines the possibility of holding banks accountable under international law for assisting a customer who has committed a serious breach of international law. Part I introduces the role of bank secrecy in the current litigation. Part 11 describes the Swiss tradition of bank secrecy. …

The De Minimus Exemption Of Stored Value Cards From Regulation E: An Invitation To Fraud?, Sean M. O'Connor

Articles

How valuable is $100? To a student? To a single unemployed parent? To a well-compensated professional? The Federal Reserve Board apparently believes that the potential loss of $100 is not a tremendous burden on anyone. In a recently proposed rule, the Board exempts stored value cards[that contain less than $100 from the same regulations that protect consumers from most types of fraud associated with ATM, debit, and credit cards. Regulation E (Reg E) currently regulates the electronic funds transfers (EFTs) that are at the heart of ATM/debit/credit card transactions by requiring printed receipts, error resolution procedures, periodic statements, initial disclosure …

Banking Law, Penny A. Hazelton

Chapters in Books

• Introduction
• Federal Law
• State Law
• Federal Law Framework
• Office of the Comptroller of the Currency
• Office of Thrift Supervision
• Board of Governors of the Federal Reserve System
• Federal Deposit Insurance Corporation
• Resolution Trust Corporation
• Federal Housing Finance Board
• Federal Home Loan Bank Board
• State Regulatory Framework
• Additional Research Sources
• Appendices

The Importance Of Being Honset - Lessons From An Era Of Large-Scale Financial Fraud, Anita Ramasastry, Thomas C. Baxter

Articles

In recent years, we have seen a series of staggering losses sustained by large multinational banking organizations. The Daiwa Bank ("Daiwa"), Barings Bank ("Barings") and the Bank of Credit and Commerce International ("BCCI") are three prominent examples. Each of these institutions suffered losses in excess of $1 billion through unauthorized, fraudulent or unlawful conduct by management. In each of these institutions, there existed a key bank official who broke through what might be considered a billion dollar barrier. At Daiwa Bank's New York Branch, there was Toshihbe Iguchi, its Senior Vice President and bond trader. Barings Bank had Nick Leeson, …

China's Gatt Bid: Why All The Fuss About Currency Controls, Chris Brown

Washington International Law Journal

China did not succeed in its bid to join the General Agreement on Tariffs and Trade (GATT) during the Uruguay Round. A key stumbling block was China's mechanism of exchange rate controls. From the mid-1980s to the end of 1993, China used a dual-rate currency mechanism, administering these rates through a loose network of about 100 exchange centers ("swap centers"). The swap centers helped to create partial convertibility of the Chinese currency and were instrumental in creating incentives for China's exporters and in attracting foreign investment. However, the swap centers also caused trade conflicts with the U.S. and within GATT. …

Introduction To The Financial System And Securities & Exchange System Reform Act In Japan, Hiroshi Naka, Akio Nakamura, Atsushi Yamashita, Scott Siegler

Washington International Law Journal

This translation of an original Japanese language work, by Hiroshi Naka and Akio Nakamura, both of the Japanese Ministry of Finance, details the reforms of Japan's financial and securities & exchange system made under the recently enacted System Reform Act. The major reforms under the Act include: (1) altering the "Glass Steagall" rule (the separation of securities business and banking business) in Japan so that banks and securities companies can engage in each other's business through their subsidiaries; (2) extending securities regulations to some new types of structured finance; (3) amending public offering provisions and providing new articles for private …

Banking Law, Penny A. Hazelton

Chapters in Books

• Introduction
• Federal Law
• State Law
• Federal Regulatory Framework
• Office of the Comptroller of the Currency
• Board of Governors of the Federal Reserve System
• Federal Deposit Insurance Corporation
• Federal Home Loan Bank Board
• Office of Thrift Supervision
• State Regulatory Framework
• Additional Research Sources
• Appendices

Banking Law, Penny A. Hazelton

Chapters in Books

• Introduction
• Federal Law
• State Law
• Federal Regulatory Framework
• Office of the Comptroller of the Currency
• Board of Governors of the Federal Reserve System
• Federal Deposit Insurance Corporation
• Federal Home Loan Bank Board
• State Regulatory Framework
• Additional Research Sources
• Appendices and index

The Functions Of Consumer Reporting Agencies Under The Fair Credit Reporting Act—Bryant V. Trw, Inc., 689 F.2d 72 (6th Cir. 1982), Barbara C. Sherland

Washington Law Review

This Note first reviews the purpose and function of a consumer reporting agency and discusses the provisions of the FCRA that pertain to consumer reporting agencies and judicial interpretations of those provisions. It then analyzes the Bryant decision in light of the policies behind the FCRA and criticizes the effect of the FCRA in sheltering reporting creditors. This Note concludes that the Bryant decision should be read narrowly to reflect the true spirit of the FCRA. Consumer reporting agencies must be permitted to function as mere conduits of information without incurring liability for inaccuracies over which they have no control. …

State Regulation Of Federally Chartered Financial Institutions: Washington's Anti-Redlining Act, Richard H. Cleva

Washington Law Review

The purpose of this comment is to analyze the law on state regulation of federal financial institutions and then to apply that analysis to the Washington act in order to determine whether the act can validly be applied to national banks and federal savings and loan associations. Part II critically describes the Washington act and compares it with federal law on the same subject. Part III surveys the judicially developed limits on state regulation of federal financial institutions. Part IV then considers the validity of the Washington act as applied to federal financial institutions in light of the judicial limits …

A Suggested Analysis For Regulation Of Equal Credit Opportunity, Linda S. Hume

Washington Law Review

In its 1972 report to the President and Congress, the National Commission on Consumer Finance called for legislation to insure that every consumer would have equal access to the credit market and "that credit should never be denied solely because of characteristics such as race, creed, color, occupation or sex." This call reflected both a recognition of the growing economic importance of the ability to make credit purchases and a concern that many consumers were denied credit because of their membership in a class, rather than because of any individual lack of credit worthiness. As part of this broader investigation …

Bank Branching In Washington: A Need For Reappraisal, Richard B. Cohen

Washington Law Review

Washington bank branching policy, which essentially limits geographic bank expansion to mergers with existing banks, is being frustrated by aggressive enforcement of federal antitrust statutes. Given the federal restrictions on bank concentration and the need for a responsive and competitive commercial banking structure at the local level, the author concludes that Washington should revamp current statutory policy and allow limited de novo bank branching.

Usury—Installment Sales Contracts: Limitation Of The Scope Of The Time Price Doctrine—National Bank Of Commerce Of Seattle V. Thomsen, 80 Wn.2d 406, 495 P.2d 332 (1972), P. A. H.

Washington Law Review

In 1965 Greg Thomsen entered into an agreement with Carter Motors for the purchase of an automobile. In addition to signing a purchase order, Thomsen executed a conditional sales contract which provided that payments were to be made to the National Bank of Commerce (NBC) and showed a time price differential of $242.15, the equivalent of a 14.61 percent annual finance charge. A Carter Motors salesman had requested that Thomsen finance the purchase through NBC, which had supplied the contract form and other documents used in the transaction. Carter Motors immediately assigned the contract to NBC pursuant to a financing …

Purchase Of Note Constitutes Usurious Loan, Anon

Washington Law Review

Defendant applied for a loan to an investment broker to whom he gave a mortgage and a promissory note payable to, and subsequently endorsed in blank by, a third party. The broker, whose name appeared on neither instrument, then sold the 6,000 dollar note at a six per cent discount to plaintiff after deducting a commission of 890 dollars. Defendant received only 4,750 dollars for his note. Plaintiff did not know that his money constituted the original consideration for the note, which bore ten per cent annual interest. After defendant's default, plaintiff brought this action to foreclose the mortgage. The …

Effect Of Joint Accounts With Right Of Survivorship In Washington, Virginia B. Lyness

Washington Law Review

The recent passage in Washington of Initiative No. 208 providing for creation of joint tenancies in real and personal property provides the occasion for a reconsideration of the current status of the statutory and case law in Washington relating to the effect given to "joint tenancy" accounts with right of survivorship. Such an account typically takes the form of a deposit opened in the name of the depositor and another, payable to either or to the survivor. Does such an account, by virtue of present statutes, in fact create a joint tenancy with all its incidents as known to the …

Community Property, Lawrence M. Ross

Washington Law Review

Covers cases on the right of survivorship in joint tenancy bank accounts.

Negotiable Instruments, Rex M. Walker

Washington Law Review

Covers cases on bills and notes—corporate endorsement.

Creditor's Rights, Myron J. Carlson, Ivor Lusty

Washington Law Review

Covers cases on the declaration of homestead—effect on existing judgment liens (Carlson) and on the mortgage acceleration clause (Lusty).

Houseshold Finance Case: Statutory Review Of Discretionary Power To License, Roger I. Lewis

Washington Law Review

The recent case of Household Finance Co. v. State involves judicial review of a discretionary power to issue small loan licenses; but the language used by the court is of such breadth that the entire field of judicial review of administrative licensing must be re-examined. The plaintiff (Household Finance Co.) desired to open small loan agencies in Seattle and Vancouver. In compliance with statute, it made application to the Supervisor of Banks for the necessary licenses, but the application was denied. In accordance with statutory procedure, the superior court of Thurston County held a trial de novo. At the conclusion …

Statutory Redemption: The Enemy Of Home Financing, Ernest M. Murray

Washington Law Review

Although much has been written criticizing the statutory right of redemption from real estate foreclosures, it still exists in Washington and a majority of the United States. The basic reason for its continued existence is the strong trend throughout modern timnes to give greater protection to the "oppressed debtor." The history of the moratoria legislation of the last depression is the strongest evidence of the sympathy for the debtor class, and the statutory right of redemption comprises not only a large part of the trend, but it is the place where the policy of favoring the mortgage debtor has reached …

Worthless Check Transactions: Rem. Rev. Stat. 2129, Sections 23 And 24 Of The Uniform Sales Act, The Motor Vehicle Registration Act, James M. Dolliver

Washington Law Review

Recently the Washington Supreme Court considered two cases involving the exchange of goods for a worthless check with a subsequent sale to a bona fide purchaser. In the first case the Court found for the bona fide purchaser while in the later case the original owner prevailed. Fairness to the Court compels the statement that the reason for this surprising reversal was not mere caprice but seemed rather to stem from a little used statute passed in 1854, the construction of which was controlling in each opinion.

Joint Tenancy In Washington Bank Accounts, Ivan C. Rutledge

Washington Law Review

What is this statutory creature, the deposit owned in joint tenancy with right of survivorship?

Mortgages Of Personal Property To Be Subsequently Acquired, Frank C. Latcham

Washington Law Review

Since a man cannot transfer what is not his, a sale of property to be subsequently acquired by the vendor is ordinarily given effect only as a contract to sell such goods after they have been acquired. Such a bargain, under the law of sales, is not self-operating to pass the property in future goods to the purchaser on their mere acquisition by the seller, but requires a subsequent act of performance by the seller assented to by the buyer to carry out the obligation, usually termed a subsequent act of appropriation. The most important exception to this rule is …

Rights Of Beneficiaries Of Government Savings Bonds, Frank Latcham

Washington Law Review

In 1939 the Washington Court in Decker v. Fowler virtually eliminated the effect of the beneficiary provision in government savings bonds by holding that beneficiaries named in the bonds have no right to the proceeds on the death of the purchaser unless there has been a valid inter vivos gift of the bond between the purchaser and the beneficiary. The majority of the court apparently failed to recognize that there was a donee beneficiary contract entered into between the purchaser and the government. In two subsequent Washington cases, where the court has found a contract relation in somewhat analogous situations, …

Future Advances On Mortgages In Washington, John B. Krilich

Washington Law Review

When Elnmendorf-Anthony Co. v. Dunn was decided in August, 1941, it completed the law of future advances on mortgages in this jurisdiction. The case dealt with the problem of optional advances by the mortgagee, and the effect of intervening encumbrances upon such advances. Perhaps it will be well to show the fact situation in order to see the problem more clearly.

Regulation Of Small Loans In Washington, Warren L. Shattuck

Washington Law Review

During the past 40 years legislative attempts to solve the small loan problem have taken various forms. Fairly typical are the Washington statutes which are the main subject matter of this paper.

Survivorship In Joint Bank Accouns, And Wilson V. Ivers, M. Bayard Crutcher

Washington Law Review

Joint bank accounts have given rise to considerable litigation, concerning a number of questions. A deposits money in a bank, payable in any part to himself or to B, or to the survivor. If A draws upon the account, may B assert an interest in the money taken, or in property purchased with it? If B withdraws money, can A reclaim it? If A dies must the bank pay B because the account is "payable to the survivor," though B has no claim of ownership? If B is permitted to keep what remains at A's death, is the account subject …

Preference In Bank Deposits, Frank T. Rosenquist

Washington Law Review

While it is possible to expressly create a general, a special, or a specific bank deposit, the determination of the type established usually is a matter of construing the intention of the parties from the facts and circumstances surrounding the transaction. No set form is necessary for their validity Like any other contract, the relationship established arises out of the mutual understanding of those creating it. The Restatement of the Law of Trusts has taken the view that the relationship depends upon the manifest intention of the parties, and that if the money is to be kept or used for …