Banking and Finance Law

Bank and finance law is concerned with the laws pertaining to the regulation of financial institutions. All banks and the accounts you keep in them are regulated by state and federal statutory laws, and they are regulated by the laws under which they are established. This applies to any financial institution.?

There are many types of banks, which is why some are able to offer certain advantages to customers over others. The reason is that these may be regulated by different state and/or state agencies. They are similar, but enjoy different rights, powers, obligations, and may have differing tax requirements.?
Here are a couple of the most common examples:

Savings and loans are required to invest more of their assets in mortgages than regular banks.

Credit unions are non-profit financial institutions that are owned and run by its members, where banks issue stocks and are owned by groups of stockholders. 

Overall, banks are subject to three Federal agencies:

The Comptroller of the currency charters (National banks)

The Federal Reserve Board

The FDIC (Federal Deposit Insurance Corporation

The State regulators in each state depend upon the state government. Usually it is called the State Banking Commission or Department of Banking and Finance. These agencies are headed by a Commissioner, Director, or Superintendent that regulates the state chartered banks.

Banking and finance law also covers areas such as broker-client disputes. Problems that might typically arise could be in the following situations:

A broker provides false or misleading trade information
Excessive trading that generates more commissions for the broker
Trading without the client's authorization
Negligence on the part of the broker
A broker repeatedly recommends excessively risky investments
Forgery or theft
Distribution of fraudulent or misleading investment materials

Fraud can be defined as intentional perversion of the truth. It is misrepresentation of the facts which induces another individual to part with a valuable possession or legal right. Federal Securities laws cover such criminal acts as fraud, selling bogus securities, and insider trading.

When illegal activities such as any of the above occur, including broker misrepresentation, nondisclosure, violations of fiduciary duty, or misappropriation of funds, there is recourse. You can complain to the Securities and Exchange Commission, the National Association of Securities Dealers, Inc. and/or any Stock Exchange the broker belongs to. You could also lodge a complaint to your State Securities Administrator who is a member of the North American Securities Administrators Association.

Banking and finance law attorneys assist in filing claims against brokers, investment advisors, banks, or other financial institutions in violation of laws or federal regulations, mismanagement or funds, and trusts. Lawyers who specialize in this area of the law also assist those facing litigation or regulatory enforcement proceedings. As other areas of law, this can be an often complex area of the legal system to deal with. We hope the information contained in these pages has been helpful and informative. Find banking and finance law attorneys in the Internet Lawyer Directory.