Chapter 17 introduces the reasons for the regulatory environment, the history of the McFadden Act of 1927, the Banking Act of 1933 referred to as the Glass Steagall Act, the Banking Act of 1935 as the foundation for modern banking activity until the early 1980’s. The Depository Institutions Deregulation and Monetary Control Act of 1980, the Garn-St. Germain Act of 1982 as well as the Financial Institutions Reform, Recovery and Enforcement Act of 1989 ushered in the era of allowing banks to offer more services under supervision from different regulatory agencies. The OTS, Office of Thrift Supervision supplanted the Federal Home Loan Bank Board. Other legislation enacted includes the Omnibus Budget Reconciliation Act of 1993 and most importantly the Gramm-Leach-Bliley Act of 1999 which effectively ended the prohibition concerning the separation of banks from investment banking activities. Finally, the Federal Reserve regulates banks that have many subsidiary banks that have national charters as well as state charters. In respect to international banking Basel Committee on Banking Supervision sets standards for banks domiciled or transacting business in the EU. We are now up to the Basel III capital standards.