You are on page 1of 2

Cornell University Department of Policy Analysis and Management PAM 3440: Regulating Financial Institutions Spring 2014 Professor

Sharon Tennyson Email: sharon.tennyson@cornell.edu Office: 252 MVR Hall Phone: 255-2619 Class Meetings: Tu/Th 11:40-12:55 MVR G71 Course Description This course examines financial institutions and the way that these institutions are regulated in the United States and in other countries. The course provides an overview of the financial system, with special consideration of the role of financial intermediaries and the economic rationale for their regulation. The increasing integration of the financial services industries leads to the study of several major categories of intermediaries including banks and other depository institutions, insurance companies, securities dealers, and mutual funds and the regulators that oversee their operations. Reflective of the increasing globalization of the financial services industry, the course considers regulations in both the United States and in other countries. Course Rationale For households and businesses, the global financial crisis of 2008 created a new appreciation of the importance of the financial system to economic activity. For regulators and policymakers, the crisis served as reminder of the potentially grave consequences for the financial system of persistent regulatory imbalances. As a consequence of the crisis, financial regulatory systems around the world are being substantially reformed. This course aims to provide students with an understanding of the motivation, evolution and experience of financial institutions regulation using the global crisis as a backdrop. Learning Objectives Students will leave the course with an understanding of the financial system and its regulation, including knowledge of the specific regulatory agencies and rules. Students will gain understanding of the intent of regulatory policies and will learn to critically evaluate regulatory outcomes and reforms to the financial regulatory system. More specifically, students who have taken this course will be able to: 1. Describe the motivation, evolution and experience of financial institutions regulation. 2. Distinguish the roles of the various regulatory agencies with oversight of U.S. financial institutions, and compare regulation of financial institutions across countries and over time. 3. Analyze specific elements of the regulation of U.S. financial institutions. 4. Obtain and interpret data on financial institutions published by financial regulators. 5. Critically evaluate the performance of financial regulatory systems. Teaching Assistants: Jos Balmori (jrb392) Maxwell Kellogg (mdk233)

P age |2

Course Requirements and Expectations The required textbook for the course is a customized text (Custom Text) excerpted from Financial Markets and Institutions, Frederic S. Mishkin and Stanley G. Eakins, 7th edition (2012). The text is available at the Cornell Store and is on reserve at Mann Library. Students may instead use the full textbook and read the appropriate chapters. However, because financial regulation is evolving so quickly it is important that students use only the latest (2012) edition of this textbook. Lecture notes, assignments and other readings will be posted on Blackboard. The course will be taught through lecture, discussion, and updates on current public policy. Assignments will be posted on Blackboard and students are expected to attend and to be prepared for lecture. Students should consult the course website frequently for assignments, announcements and course information. Grading Total points available are 200 and the grade weighting scheme is as follows: Prelim Exam 1: Prelim Exam 2: Final Exam: HW Assignments: Participation: 22 percent [44 points] 22 percent [44 points] 35 percent [70 points] 15 percent [30 points] 6 percent [12 points]

HW Assignments involve online research to gather and assess data relevant to financial regulation. Participation will be assessed based on completion of participation assignments. The prelim exams consist of short answers and definitions. The final exam is comprehensive, and consists of short answers and essays. Course Administration (1) All assignments are due at the beginning of the class period for which they are assigned. Late assignments will be accepted only if permission has been requested and received in advance of the due date. Points may be deducted for lateness in those cases. (2) Requests for regrading of assignments or exams must be submitted in writing within one week of the works return. Responses to regrade requests will be returned in writing. (3) Make-up exams will be offered only in exceptional circumstances, and with written documentation of a medical or family emergency or professional conflict. Academic Integrity Cornells code of academic integrity applies to all course related work, including homework assignments. Although discussion of course materials and questions among students is allowed and encouraged, any work submitted for credit in the course must be a students individual work unless specifically instructed otherwise. Submission of work for academic credit in this course implies that the student certifies the work is in compliance with the code of academic integrity.

You might also like