International Banking Regulation, 3rd Edition

Foreword 
CHAPTER I - Introduction 
CHAPTER II - United States Regulation of International Bankings 
A. General Principles 
B. American Banks Abroad 
1. Subject to Foreign Regulation and Control 
2. Foreign Branching by Federal Instrumentalities 
3. Foreign Powers
a. Member Banks, Holding Companies
and Edge Act Banks 
b. Non-member State Banks 
4. Acquisition of Foreign Banks 
5. Investment in Foreign Banks 
C. Entry by Foreign Banks into the United States 
1. Entry Generally 
a. Domestic Branches 
b. Agencies 
c. Representative Offices 
d. State Power 
e. The Dual Banking System and
Foreign Banks 
2. Application of the Bank Holding Company Act 
a. General 
b. The "American Express Exception"
3. Federal Reserve Supervision 
4. Continuing Interagency Supervision 
5. Interstate Branching 
6. Deposit Insurance 
7. Federal Reserve Act Secs. 23A and 23B 
D. Basle Reports and United States Responses 
1. Bank Supervision 
2. International Capital Guidelines 
a. The Accord 
b. 1995 Amendment 
c. 1999 Proposal 
d. 2001 and Subsequent Proposals 
3. Derivatives Regulation 
4. Conglomerate Regulation 
5. Credit Risk Guidance Papers 
6. Electronic Banking Risk 
7. Auditing 
8. Special Exposures 
E. International Cooperation Generally 
1. Common Framework 
2. International Money Laundering Controls 
CHAPTER III - International Bank Services 
A. International Lending Supervision 
1. United States Bank-Regulatory Relationships 
2. Implementation of ILSA 
3. International Concepts of Financial Institution
Supervision 
a. Capital Adequacy Principles Paper 
b. Supplement to the Capital Adequacy
Principles Paper 
c. Fit and Proper Principles Paper 
d. Framework for Supervisory Information
Sharing Paper 
e. Principles for Supervisory Information
Sharing Paper 
f. Coordinator Paper 
g. Supervisory Questionnaire 
B. Country Risk 
C. Sovereign Immunity and Act of State Doctrines 
1. General 
2. The Two Doctrines 
3. The Sovereign Immunity Doctrine 
4. The Act of State Doctrine 
a. As a Choice of Law Rule 
b. Based Upon the Separation of Powers 
c. The Political Powers Approach 
D. Inter-Bank Loans 
E. International Loan Forgiveness 
F. Letters of Credit 
1. Governing Law 
a. The Uniform Commercial Code
b. The ICC Uniform Customs and Practices 
c. The Common Law
2. Clean Credits 
3. Sight or Time Credits 
4. The Independence Principle 
5. Discrepancies between LC and Documents 
6. Fraud 
G. Bankers Acceptances 
H. Trade Acceptances 
I. Investment Banking 
1. Bond Underwriting 
2. Stock Brokerage 
3. Merchant Banking 
J. Syndications and Participations 
CHAPTER IV - International Banks 
A. The United States Commitment 
B. The World Bank 
C. The International Monetary Fund 
1. Organization 
2. Special Drawing Rights 
3. Conditionality 
4. IMF Policies
5. The IMF and Comparability Requirements 
6. Changing Influence of the IMF 
7. Future of the International Monetary Fund 
D. The Export-Import Bank of the United States 
1. Purposes of the EXIM 
2. Noncompetitive Financing 
3. Tied Aid and Mixed Credits 
E. The Overseas Private Investment Corporation 
F. Bank for International Settlements
G. Foreign Specialized International Banks 
1. European Bank for Reconstruction
and Development 
a. Introduction 
b. The Agreement 
c. Bank Operations 
d. Criticisms of EBRD 
2. Asian Development Bank 
a. Introduction 
b. ADB Policies 
c. Lending and Borrowing 
d. The Business of the Bank 
e. Administration 
f. The Bank and Private Capital 
3. The Inter-American Development Bank 
4. The African Development Bank 
5. East Caribbean Central Bank 
H. The Paris and London Clubs 
1. The Paris Club 
2. The London Club 
I. Central Banks 
1. Responsibility for Foreign Exchange 
2. United States Operations 
3. The European Central Bank 
4. Other Functions of Central Banks 
5. The Exercise of Monetary Control 
6. Bank Regulation 
J. Bank for Continuous Linked Settlement 
K. The Mix of International Lending 
CHAPTER V - Foreign Deposits 
A. Introduction 
B. Requirements as to Foreign Deposits 
1. The FDIC Assessment Base 
2. Federal Reserve System Reserve
Requirements 
3. Payment of Interest on Demand Deposits 
4. Liability for Foreign Deposits 
a. The United States and the Far East 
b. Cuba and the United States 
c. Vietnam and France 
d. Resolution in the United States 
C. The Offshore Bank 
D. USA Patriot Act of 2001 
E. The International Banking Facility 
1. Introduction 
2. The IBF Concept 
3. The IBF Controversy 
4. Adoption of the IBF 
5. Conclusion 
CHAPTER VI - Communications among Banks 
A. Money Transfers 
B. Funds Transfer Systems 
1. FedWire 
2. CHIPS 
3. S.W.I.F.T. 
4. Havala 
5. Other Systems 
C. Governing Statutory Law 
1. Introduction 
2. History of the UNCITRAL Model Law 
3. Nature of the Model Law 
4. The Model Law 
5. The Control of Risk 
D. Privacy, Data Transmission and Protection 
1. Nature of the Barriers 
2. European Community Position 
3. Privacy in the United States 
4. The United States Industry Position
5. Conflicts between the European Community
and the United States
6. Commerce Department Safe Harbor
Standards
7. Binding Corporate Rules 
8. Privacy Experience 
E. Other Significant Privacy Protections
1. Council of Europe Directive 
2. The Organization for Economic
Co-operation and Development ("OECD") 
3. Encryption 
a. Introduction 
b. Evolving United States Policy 
c. Constitutional Problems 
d. European Reaction 
4. Electronic Signatures 
a. Introduction 
b. European Approach 
c. Congressional Approach 
d. Uniform Laws 
CHAPTER VII - Export Controls - Embargos 
A. Introduction 
B. United Nations Embargos 
C. United States Embargos 
1. Trading With the Enemy Act of 1917 
2. The National Emergencies Act of 1976 
3. The International Emergency Economic
Powers Act 
D. Special Congressional Actions 
E. Other United States Statutes 
1. Embargos against Cuba 
2. The Arms Export Control Act 
F. Legal Principles 
1. McGrath, Attorney General v. Agency
of Chartered Bank of India, Australia
& China 
2. Libyan Arab Foreign Bank v. Bankers
Trust Co 
G. Political Impact of Embargos 
CHAPTER VIII - The Scope of International Banking 
A. Introduction 
B. The Trade Act of 1974 
C. The International Banking Act of 1978 
D. The Organization for Economic Co-Operation
and Development ("OECD") 
E. The General Agreement on Tariffs and Trade
("GATT") and the World Trade Organization 
F. The General Agreement on Trade in Services
("GATS") 
G. Reciprocity 
H. The Central Banking Directives 
1. The First Banking Directive 
2. The Second Banking Directive 
3. Foreign Banks 
4. Reciprocity 
5. "General Good" Restrictions 
6. Insolvency 
I. Free Trade Areas 
J. Dangers of Deregulation 
CHAPTER IX - Bank Secrecy 
A. Principles of Bank Secrecy 
B. The Developing International Law 
C. United States Bank Secrecy 
D. Swiss Secrecy Law 
1. Numbered Accounts 
2. Foreign Criminal Prosecutions 
3. Formal Regulation of Bank Secrecy 
a. The Constitution 
b. Statutes 
c. The Conventions on Due Diligence 
d. Exceptions to Bank Secrecy 
4. International Mutual Assistance in
Criminal Matters 
a. The General Federal Act 
b. The European Convention on Legal
Assistance 
c. The Treaty on Judicial Assistance between
Switzerland and the United States 
d. The Memorandum of Understanding
Concerning Insider Trading 
e. The Agreement for Administrative
Assistance in Tax Matters 
5. Foreign Banks in Switzerland 
E. Russia 
F. International Resolution 
G. Consumer/Commercial Needs 
CHAPTER X -  International Monetary Exchange 
A. World Currency Exchange 
1. Traditions of Currency Trading 
2. Development of the Bretton Woods System 
3. Currency Trading Today 
4. International Exchange and the Derivatives
Market 
B. The European Monetary Union 
1. Introduction 
2. The Internal Market Program 
3. Breakdown of the EMS 
4. Maastricht 
5. Monetary Union 
6. Implementation 
7. An Asian Monetary Unit? 
C. The International Financial Crisis of 1997 
D. The Great Recession of 2008 
Index