Final answer:
Banks and all financial institutions must comply with local laws governing fiduciary powers and are regulated by bodies such as the Federal Reserve, which ensures also enforcement of consumer protection laws.
Step-by-step explanation:
All financial institutions, including banks, are required by law to adhere to various regulations and are under the supervision of financial authorities such as the Federal Reserve. These institutions must comply with laws that forbid discrimination based on age, race, sex, or marital status. Additionally, they have the responsibility to disclose detailed information about their lending practices, specifically regarding home loans. Public disclosure includes how banks distribute loans geographically and the demographic details of the loan applicants, such as sex and race, ensuring transparency and equality in lending practices.
Thus, banks must comply with local laws and regulations that govern the exercise of fiduciary powers. This includes adhering to consumer protection laws and regulations set forth by financial governance bodies like the Federal Reserve, which is tasked with ensuring that banks practice fair lending and provide public disclosures. This compliance is essential for maintaining consumer trust and functioning effectively in the financial system.