Brief History Of Bank Regulations And Overview Of FDICIA And SOX

Key Take Away:

Attendees will: 

• Analyze important milestones in the US banking history 
• Appreciate links to past historical events
• Compare and contrast economic and political events and how they shaped US banking
• Master the purposes of key legislation 
• Understand key events such as:
• The barter system
• Monetarizing gold and silver
• Gersham’s Law
• McCullough vs. Maryland Supreme Court Decision (1819)
• Era of free banking (1836 to 1863)
• Creation of the OCC
• Dual banking
• “Checkbook” money
•  Depression of 1893
• Financial panic of 1907
• Crash of 1929
• Deposit Insurance and creation of FDIC (1933)

Overview:

The webinar identifies and explains historical events and legislative milestones. It especially focuses on two major recent legislative milestones: 

• FDICIA of 1991
• SOX of 2002
• History covers:
• First and Second Banks of the US
• Failure to have a Third Bank of the US
• Free banking
• National banking
• Dual banking
• Depression and panic
• Federal Reserve Act of 1913
• Monetary Control Act of 1980
• S&L crisis and bailout
• FDICIA
• SOX
• Current environment
• Latest crisis 

FDICIA of 1991 covers: 

• FDIC insurance changes 
• Restrictions on real estate lending
• Improved capital standards and new capital classifications
• Extension of credit to “insiders”
• FDIC authority to take action
• Enhanced examination process 
• Accounting aspects of FDICIA
• Audit committee issues 
• Sarbanes-Oxley (SOX) of 2002 covers: 
• The CPA and independence 
• Audit partner rotation
• Audit committee financial expert
• SEC review of periodic disclosures by issuers 
• PCAOB – new quasi-governmental inspectors
• Internal control  

Why Should You Attend:

Participants should attend for the following reasons: 

• To learn fundamentals that created the banking system of today
• To understand pivotal points in history that changed the direction of banking
• To dispel fears that banking is not logical and well thought out
• To clarify mistaken beliefs about banking 
• To comprehend the most important pieces of banking regulations
• To focus on, SOX and FDICIA
• To eliminate misconception that bank regulators are simply a bureaucratic nuisance 
• To establish need for legislation that is the protective umbrella 
• To broaden bank knowledge about key laws and regulations 
• To understand internal control
• To learn what significant changes fixed problems in banking 
• To focus on real estate problems 
• To understand need to expand capital levels
• To comprehend basic FDICIA issues that set forth the foundation that later would be the underlying basics for Basel III 
• To clarify confusion about loans to “insiders” 
• To understand exactly what the FDIC can do to return entities to a sound capital footing
• To review operational and managerial standards 
• To understand the federal examination (audit) process 
• To focus on accounting changes 
• To learn about the expanded requirements of audit committees 
• To compare the difference between FDICIA and SOX
• To understand that SOX is not specifically banking related 
• To focus on the significant changes in the CPA profession that were created by SOX
• To comprehend new requirements of the SEC and the new PCAOB

Areas Covered In This Webinar:

This session emphasizes how banking events and bank regulations have made a significant impact on the overall US banking industry over the years. 

The session explores significant, industry-changing banking legislation that has occurred over the years such as the following laws: 

• Federal Reserve Act of 1913
• The Banking Act of 1933
• The Monetary Control Act of 1980

Particular attention is placed on: 

The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) 
The Sarbanes-Oxley Act of 2002 (SOX)
The session explains and discusses important parts of those laws and how they affected and continue to affect bank internal controls and bank accounting. 

This session allows attendees to view their banking knowledge within the framework of key legislation in the industry. It shows how such legislation has changed the way we do banking in the US. 

From the early days of the country up to today the banking environment has gone through significant changes. When accountants, auditors, financial analysts and others involved in banking fully appreciate the existing banking environment and how it got to be that way, their job becomes easier with knowledge of past events in banking history.

The bank compliance training reviews the overview of US banking by focusing on the following periods in history:

• The Beginnings
• The First Bank of the US
• The War of 1812
• The Second Bank of the US 
• The Era of Free Banking
• National Banking
• The Dual Banking System
• The National Banking Problems
• Depression and Panic
• The Federal Reserve Act of 1913
• The Collapse of the Financial Markets – 1929
• The Banking Act of 1933
• The Monetary Control Act of 1980
• Savings Bank Legislation
• The S&L Crisis and Government “Bailout”
• FDICIA (detailed coverage)
• SOX (detailed coverage)
• The Current Environment
• The latest crisis

Learning Objectives:

• Learn about the history of banking in the US
• Understand the events that lead to various pieces of legislation
• Analyze the key laws that are in place and designed to regulate the banking
• Comprehend how the cornerstone to much of the legislation is the attempt to “protect the public”
• Analyze internal control issues and how those issues are impacted by FDICIA and SOX
• Compare and contrast the difference between FDICIA and SOX
• Appreciate the need for accountants, auditors, regulators and others to be aware of the overall purpose of significant bank legislative activity

Who Will Benefit;

• Financial professionals in the banking industry (financial analysts, controllers, treasures etc.)
• Internal auditors
• External auditors
• Legal personnel
• Compliance personnel 
• Risk managers

Email: [email protected] 
Toll Free: +1- 844-414-1400
Tel: +1-516-900-5509

Speakers Profile:

Paul J. Sanchez
Paul J. Sanchez, CPA, CBA, CFSA, CGMA conducts a small CPA practice in Port Washington, New York. He is also the owner of Professional Service Associates (PSA), a consulting and professional training and development business servicing corporate clients (auditors, controllers, etc.), CPA firms, professional associations and others. He was an assistant professor at Long Island University - C.W. Post Campus as well as an adjunct lecturer at City University of New York. Prior to starting PSA, he was the Vice President-Professional Development for the Audit Division of a regional bank and Director of Professional Practices and Vice President of a money-center bank, where he directed the professional practice development and training for internal auditors. He also was on the technical staff of the Auditing Standards and Examinations Divisions of the AICPA. He practiced public accounting in the New York office of Deloitte where he also was a firm recruiter and in-house professional development instructor. He was an owner and auditing and accounting seminar leader for the Person/Wolinsky CPA Review Courses, a company that prepared candidates to pass the Uniform CPA Examination. He is a frequent lecturer and seminar leader for accounting, auditing, banking, risk assessment and other professional presentations. He is the author of the textbook, “Accounting Basics for Community Financial Institutions” (Financial Managers Society, 2nd edition, Chicago, 2009) and the “Ideas an Analysis Letter: The Sanchez Take” (see www.sanchez-psa.com).  As a contributing author, his chapter on ‘An Auditor’s Approach to Risk-Based Auditing: What to Audit and When,’ is included in the textbook, “Effective Auditing for Corporates: Key Developments in Practice and Procedures,” (Bloomsbury Information, Ltd, London, 2012).

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