The Eagle or the Ostrich: A United States Perspective on the Future of Transnational Banking

In this Article, Professor Cane discusses the problems of United States banking regulations in the new global financial system. These problems include antiquated legislation, the deposit insurance system, the dual federal-state banking system, and restrictive branching laws. Part II discusses the current deposit insurance system and options for reform. Part III poses the question of whether the United States should have national treatment or reciprocal national treatment for financial institutions. Part IV discusses the limitations the United States has put on its financial institutions and the disadvantage these limitations have caused globally. Finally, in Part V, Professor Cane discusses a proposal that requires foreign banks to capitalize separately their branches located in the United States