Question 1
a – One of the functions of the Comptroller of the Currency is the chartering of national banks. Please discuss the basis on which the Comptroller would grant or deny a charter.
b – In light of the flurry of applications for bank charters which was generated during the Great Recession, what other concerns should the Comptroller, and the Fed, have about financial organizations that suddenly want to become banks?
Question 2
a – The NBA allows intrastate branches of national banks. Explain the original reason for this provision and the difficulties that arose in defining the word “branch.”
b – Explain the reason for The McFadden Act (1927).
c – How relevant is the issue of “branch banking” today? What issues today have assumed the prominence that the issue branch banking assumed at that time?
Question 3
a – In First National Bank in Plant City v. Dickinson the Supreme Court dealt with these ambiguities. Please explain their interpretation of the McFadden Act. Ultimately, how were restrictions to interstate expansion lifted?
b – How do the Dodd Frank Act and later regulatory changes address the continual tensions between state and national banking?