The Bank Regulatory System in the United States is more complex and fragmented than in other countries. It is designed to essentially achieve two goals:
- Protect consumers of bank products and services, and
- Ensure the safety and soundness of banks
While most countries have a single bank regulator, U.S. banks are regulated at the federal, state and even local levels. Banks can be chartered in the U.S. by the federal government or by any individual state. This involves many legal considerations attorneys should be aware of.
Additionally, the U.S. has a long history of separating banking from other commercial endeavors and is manifested in the rules that govern Bank Holding Companies. Faced with all these rules, why does anyone organize a bank? The answer is generally to be able to take deposits from the public, a power that only banks possess.
McCarter partners Michael Horn and Veronica Montagna spoke during this dynamic program presented by the NJSBA Banking Law Section.