Irac Brief

Week 6 IRAC Brief: Case 1

Norma Chavez

Clara McKinnie

Delia Silva

Alejandra Solorzano

LAW/531

April 2, 2014

Michael John

Abstract

The enactment of the Foreign Account Tax Compliance Act by U.S. Congress in 2010 and stronger rules and regulations brought on by Basel III and Frank Dodd have prompted domestic and international banks to reconsider how they do business. These rules and regulations are meant to address the excess of the past and to prevent any future abuses by the banking industry. Four international bankers were asked about the new rules and regulations and how they felt these would affect the way banks do business now as opposed to how they will do business in the future.

Week 6 IRAC Brief: Case 1

Issues

This paper is discussing the recommendations on banking laws and regulations to create international standards to control how much capital banks have and on economy risks on financial and operational control. International business bankers and lawyers need to understand the new rules and regulations that will affect their businesses in order to contend with financial global crisis. (Wee, 2012). This article is based on four industry leaders sharing their views on the Foreign Account Tax Compliance Act (Facta) once it rolls out and how banks are facing the scrutiny and self-discipline to demonstrate the challenges ahead of the financial global crisis, even after the legislation of the Dodd Frank enacted in July 2010 (Wee, 2012).

Banks are interconnected and when concerns arise with banks in one part of the world it brings immediate concerns to other parts of the country. With two regulatory landscapes, banks need to look at two important views one involving operations the other with a strategic view. With a strategic view, the impact of equity and higher capital may cause certain products to be less profitable. Making banks reconsider to offer those certain products or to pass the fees on to the customers. Banks do not...