This is my first post on this site. I'm a third year law student in the process of writing an article on the above subject. I would appreciate any input anyone has on this topic. Please remember that I am not a banker, merely a soon to be attorney. I am interested in any criticisms just as much as suggestions.

My article revolves around suggesting a "rule of reason" approach to tying arrangements as now advocated in the Computer industry - see Microsoft case. As far as this being an unsound and unsafe banking practice, I am suggesting some sort of capital requirement associated with these type of deals. I have heard that BOA has been tying credit to investment banking services, but instead of loaning money out of the bank, they are pooling money in an affiliate and making the loan there, so that banking regulations can be avioded.

Again, any insight on the above is appreciated.

Are your referring to loans used to buy shares/funds? In that case, you will find this article highlighting the pitfalls of margin trading.

http://www.gold-eagle.com/gold_digest_98/veneroso060198.html

If you are tallking about the illegal practice where a bank requires a customer use the bank's investment banking services to get commercial credit, see the November 2002 issue of CFO magazine. The NASD is investigating allegations of this practice.