Regulation and Deregulation

Banking is among the most regulated industries in the U.S. Banks are regulated by state governments as well as several federal agencies. Some of the agencies responsible for bank regulations and compliance are:

Federal Reserve (Fed) - Supervises and regulates a variety of financial institutions in order to make sure banks handle customer money safely and fairly.

Office of the Comptroller of the Currency (OCC) - The primary regulator of banks chartered under the National Bank Act.

Federal Trade Commission (FTC) - Protects consumer information and privacy. It works to make sure sensitive bank customer information is safe.

Federal Deposit Insurance Corporation (FDIC) - Insures deposits in insured banks and works to make sure these banks handle the funds safely and according to regulations.

Office of Thrift Supervision (OTS) - Supervises and regulates savings and loan associations across the country.

Congress also has a hand in regulating and deregulating banks. Let's take a look at three major legislative acts that have had a huge influence on the banking industry and our economy.

Legislative Acts Influence the Banking Industry.

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Review

**Legislative Review**
Banking Regulation	Cause
Glass-Steagall came in the wake of what event?	The Stock Market crash of 1929
Why were banks blamed for the Stock Market crash?	They were accused of too much speculation and risky investments
Specifically, what did Glass-Steagall do?	It prohibited banks from owning brokerage houses
What did Gramm-Leach-Bliley do?	Repealed Glass-Steagall
What is the other name for Gramm-Leach-Bliley?	Financial Services Modernizations Act of 2000
What did Gramm-Leach-Bliley allow that had been previously outlawed?	Merger of banking, insurance, and brokerage companies.

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