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Keywords

capital supervision, texas gulf sulfur, bank fraud, commercial bank trust department, securities and exchance commission, rule 10b-5, fraud, securities

Abstract

In this Article, Professor Malloy explores the effects of the federal securities antifraud rule on the regulation of banks. In particular, he focuses on the changes in regulation of commercial bank trust department activities that followed the revelations in Texas Gulf Sulphur of alleged tipping between the commercial and trust departments of a major New York bank He also argues that federal bank regulatory policy has now turned away from disclosure-oriented regulation in favor of capital supervision, and that this may be a mistaken approach to the regulation of banking.

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