Vullo Midterm Banking (2026) – 200+ Questions on Federal Reserve, Dodd-Frank, Basel III, FDIC & Banking Regulation

This Vullo Midterm Banking (2026) exam guide contains over 200 structured questions with 100% correct answers covering U.S. banking history, central banking authority, prudential regulation, affiliate transaction rules, insider lending restrictions, deposit insurance, systemic risk oversight, and post-2008 financial reforms. The material begins with foundational principles such as the Federal Reserve Act of 1913 creating the U.S. central bank, the purpose of bank regulation (protecting deposits, payments systems, fairness, and preventing financial crime), and the National Currency Act of 1863 and National Bank Act of 1864 establishing uniform national currency, the OCC, and the dual banking system (pages 1–2). The guide provides in-depth coverage of affiliate transaction rules under Sections 23A and 23B of the Federal Reserve Act, including covered transactions, collateral requirements, 10%/20% capital limits, the Market Quotation Exemption, Dodd-Frank coordination requirements for waivers, and Regulation W compliance. It also thoroughly explains Regulation O insider loan limits (no preferential treatment, board approval thresholds, loan caps), Community Reinvestment Act (CRA) obligations, redlining prohibitions under the Equal Credit Opportunity Act, and key supervisory frameworks such as CAMELS ratings, regulatory capital calculation (assets minus liabilities), and risk-based deposit insurance assessments. Comprehensive reform-era content includes the Banking Act of 1933 (Glass-Steagall separation, FDIC creation), FDIA deposit insurance limits ($250,000), Basel I–III capital and liquidity standards (LCR, NSFR), CCAR and DFAST stress testing, SIFI designation and living wills under Dodd-Frank, the Volcker Rule’s limits on proprietary trading, FSOC systemic oversight authority, and macroprudential vs microprudential regulation distinctions. The guide also addresses fintech and modern regulatory issues such as the True Lender doctrine, Valid When Made rule, OCC crypto trust charters (Anchorage Digital Bank), AI governance concerns raised by Fed Governor Barr, ESG and reputational risk debates, and enforcement case studies such as Evolve Bank. Constitutional and structural topics are extensively covered, including McCulloch v. Maryland, Necessary and Proper Clause authority, Myers v. United States, Humphrey’s Executor, Seila Law v. CFPB (single-director removal protection severed), federal preemption principles, and the constitutional status of independent agencies. Additional core concepts include moral hazard, fractional reserve banking, bank runs, liquidity risk, credit risk, maturity transformation, correspondent banking, shadow banking, repo markets, countercyclical capital buffers, and the cyclical pattern of deregulation → crisis → re-regulation in U.S. financial history. This document may concern: – Law students enrolled in Banking Regulation or Financial Institutions courses – JD students preparing for midterm or final exams in Financial Regulation – LLM students specializing in financial law – MBA or finance students studying banking policy and systemic risk – Bar exam candidates reviewing federal regulatory frameworks – Professionals preparing for compliance, regulatory, or risk management roles Keywords: Vullo midterm banking 2026 Federal Reserve Act 1913 National Bank Act 1864 dual banking system Section 23A 23B affiliate transactions Regulation W affiliate rules Regulation O insider lending limits Community Reinvestment Act redlining FDIC deposit insurance 250000 Glass Steagall Act separation Dodd Frank Act SIFI FSOC Volcker Rule proprietary trading Basel III liquidity coverage ratio CCAR DFAST stress testing macroprudential vs microprudential regulation True Lender doctrine fintech Valid When Made interest rate rule Seila Law CFPB removal protection McCulloch v Maryland necessary proper clause fractional reserve banking moral hazard shadow banking repo markets