GSBLSU Favorite Class: Bank Regulatory Law


The turbulent world of finance and economics coupled with the expansion of regulation and governmental oversight has changed the landscape of banking.  The laws that create requirements, restrictions, and guidelines for which U.S. banks must abide are, at the very least, complex.  One course offering at Graduate School of Banking at LSU, Bank Regulatory Law, taught by Carl J. Chaney can assist bankers in navigating the challenges and encumbrances of banking regulatory law.

About the Professor: Carl J. Chaney, President & CEO, Hancock Bank / Whitney Bank

After completing his Bachelor of Business Administration from the University of Mississippi, Chaney graduated from the University of Mississippi School of Law in 1986.  In 1998, he became the Chief Financial Officer at Hancock Bank and stayed in that role until 2006 when he became the President and CEO of Hancock & Whitney Banks.

About the Course: Bank Regulatory Law

As a second year class, the Bank Regulatory Law course is a required component of the curriculum.  The state of current and active legislation and economic conditions make the details of the class an understandably important topic.  This course is intended to assist bankers in the challenging and rapidly evolving environment of regulatory law.  Topics include regulatory enforcement actions, mergers and acquisitions (including FDIC assisted deals), bank secrecy act, C.R.A., fair lending, bankruptcy, lender liability, and survival tactics for the new financial services industry.  Attention is also given to current and proposed legislation as well as discussing the future of the financial services industry.

Three Takeaways

regulation_compliance1.) Real Life Applications: This course goes beyond simply listing the textbook jargon and examples of bank regulation.  The class is engaged and encouraged to think outside of conventional thought processes. The implications of how current laws can affect lending practices and how potential legislation and trends can impact business are only two of many issues covered in this course.  By using actual scenarios and leveraging experience, students learn how to make these laws malleable and to develop a proactive approach to banking.

2.) Business Strategy: Looking at real-world data alongside the economic impacts allows banks of various sizes the insight into laws applicable to specific situations and how to operate within the parameters.  In Recent Developments in Mergers & Acquisitions, the different regulations that pertain to “leveraged deals” are broken into two deposit sizes, <$500mm and >$500mm.  Maintaining balances as you approach this threshold can make a big difference in terms of what the laws allow.  Other strategic positioning applications which enable an organization either to acquire or be acquired are explored.

3.) Expectations: Similar to the real life applications, Professor Chaney demonstrates numerous variations of possible outcomes in given scenarios . In one exercise the class was told to act as if everyone was on the board of a bank.  Next came the question, “Why would we sell?”  As different answers came from the students, a variety of different objections, plausible reasoning, catalysts, and examples changed the narrative.  Whether a potential sale or merger was being discussed, or lessons were taught on why regulatory laws could, or couldn’t, make an initiative possible, the very reality of how banking regulatory laws will influence the futures of the students at GSBLSU was abundantly earnest and significant.

While this course overview and the few takeaways presented here only scratch the surface of the knowledge handed down from Professor Chaney to the GSBLSU students, Bank Regulatory Law and its far reaching implications in the industry will not soon dissipate.  Regulatory law will only grow in scope and complexity in the coming years, so our students gain an edge in learning the base and building as new developments come at them.

Assisting Mr. Chaney in the course are three outstanding banking professionals.  John Heasley is EVP and General Counsel of the Texas Bankers Association, Jim Mabry is Managing Director, Keefe, Bruyette & Woods, Richmond, VA, and Robert Reynolds, Attorney-at-Law, Reynolds, Reynolds & Little, Tuscaloosa, AL.

With this course being taught by a banking professional who personally oversaw one of the largest mergers (Hancock & Whitney) in the southeast US region, students have the opportunity to learn so much more than simply the course outline.    For junior bankers looking to secure their futures in their banking careers and home banks, this type of knowledge cannot be obtained in such concentrated fashion anywhere but GSBLSU. To learn more about GSBLSU, click below.