Handbook for Directors of Financial Institutions

Handbook for Directors of Financial Institutions

Elgar original reference

Edited by Benton E. Gup

Offers advice from existing directors, scholars and regulators about what good directors need to know. The Handbook for Directors of Financial Institutions offers the practitioner and the scholar a comprehensive guide to what it takes to survive and thrive as a director of a financial institution. The authors comprise current directors of banks, credit unions, insurance companies and other organizations, bank regulators, lawyers and academics. They provide unique insights and advice about corporate social responsibility, legal risks, starting a new bank, D & O insurance, sub prime lending, Islamic banking, and other timely issues.

Preface

Edited by Benton E. Gup

Subjects: business and management, corporate governance, economics and finance, corporate governance, financial economics and regulation, law - academic, corporate law and governance, finance and banking law

Extract

Benton E. Gup Directors are responsible for good corporate governance. Corporate governance is a hot topic because of Enron, Tyco, WorldCom, and dozens of other corporate scandals. In response to these scandals, Congress passed the Sarbanes-Oxley Act of 2002 (SOX), which imposed additional pressures and costs on firms. In addition, the USA PATRIOT Act (2001) increased the regulatory burden and costs on all financial institutions. Financial institutions, in the context of the Bank Secrecy Act and antimoney laundering laws, include but are not limited to commercial banks, all subsidiaries of bank holding companies, US branches and agencies of foreign banks, savings and loan associations, credit unions, federally regulated securities brokers, dealers, and investment companies, money service businesses, casinos, card clubs, futures commission merchants, insurance companies offering selected products, and mutual funds. The motivation for this book came when I interviewed some of the directors of a financial institution that had suffered serious problems due to lack of proper oversight. The directors were intelligent, and very successful in their own professions. However, they had little or no background in financial institutions, which can be extraordinarily complex. Accordingly, this book differs significantly from other sources of information about corporate governance because it contains advice from existing directors of banks, credit unions, and insurance companies, regulators, lawyers, and academics from the US, Europe, and Australia about what directors of financial institutions need to know in order to perform their duties. It covers a wide range of subjects, including corporate...