Business Commons^™

Regulating New Tech: Problems, Pathways, And People, Cary Coglianese

All Faculty Scholarship

New technologies bring with them many promises, but also a series of new problems. Even though these problems are new, they are not unlike the types of problems that regulators have long addressed in other contexts. The lessons from regulation in the past can thus guide regulatory efforts today. Regulators must focus on understanding the problems they seek to address and the causal pathways that lead to these problems. Then they must undertake efforts to shape the behavior of those in industry so that private sector managers focus on their technologies’ problems and take actions to interrupt the causal pathways. …

Reconsidering The Evolutionary Erosion Account Of Corporate Fiduciary Law, William W. Bratton

All Faculty Scholarship

This Article reconsiders the dominant account of corporate law’s duty of loyalty, which asserts that the courts have steadily relaxed standards of fiduciary scrutiny applied to self-dealing by corporate managers across more than a century of history—to the great detriment of the shareholder interest. The account originated in Harold Marsh, Jr.’s foundational article, Are Directors Trustees? Conflicts of Interest and Corporate Morality, published in The Business Lawyer in 1966. Marsh’s showing of historical lassitude has been successfully challenged in a recent book by Professor David Kershaw. This Article takes Professor Kershaw’s critique a step further, asking whether the evolutionary …

Deploying Machine Learning For A Sustainable Future, Cary Coglianese

All Faculty Scholarship

To meet the environmental challenges of a warming planet and an increasingly complex, high tech economy, government must become smarter about how it makes policies and deploys its limited resources. It specifically needs to build a robust capacity to analyze large volumes of environmental and economic data by using machine-learning algorithms to improve regulatory oversight, monitoring, and decision-making. Three challenges can be expected to drive the need for algorithmic environmental governance: more problems, less funding, and growing public demands. This paper explains why algorithmic governance will prove pivotal in meeting these challenges, but it also presents four likely obstacles that …

Jpmorgan Chase London Whale H: Cross-Border Regulation, Arwin G. Zeissler, Andrew Metrick

Journal of Financial Crises

As a global financial service provider, JPMorgan Chase (JPM) is supervised by banking regulatory agencies in different countries. Bruno Iksil, the derivatives trader primarily responsible for the $6 billion trading loss in 2012, was based in JPM’s London office. This office was regulated both by the Office of the Comptroller of the Currency (OCC) of the United States (US) and by the Financial Services Authority (FSA), which served as the sole regulator of all financial services in the United Kingdom (UK). Banking regulators in the US and the UK have entered into agreements with one another to define basic parameters …

Jpmorgan Chase London Whale G: Hedging Versus Proprietary Trading, Arwin G. Zeissler, Andrew Metrick

Journal of Financial Crises

In December 2013, the primary United States financial regulatory agencies jointly adopted final rules to implement Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which is often referred to as the “Volcker Rule”. Section 619 prohibits banks from engaging in activities considered to be particularly risky, including proprietary trading and owning hedge funds or private equity funds. Banking regulators designed the final rule against proprietary trading in part to prevent losses like the $6 billion London Whale loss that took place in 2012 at JPMorgan Chase. Given the controversial nature of the Volcker Rule, it is …

Jpmorgan Chase London Whale F: Required Securities Disclosures, Arwin G. Zeissler, Giulio Girardi, Andrew Metrick

Journal of Financial Crises

On April 13, 2012, JPMorgan Chase (JPM) Chief Financial Officer Douglas Braunstein took part in a conference call to discuss the bank’s first quarter 2012 earnings. Coming just a week after media reports first questioned the risks taken by JPM derivatives trader Bruno Iksil, Braunstein made a series of assertions about the trades. On May 10, JPM finalized its first quarter financial results, which included some disclosures regarding Iksil’s trading that were substantially different from Braunstein’s statements of April 13. At issue is whether the regulatory filings on April 13 and May 10, as well as verbal comments by Braunstein …

Progressive Antitrust, Herbert J. Hovenkamp

All Faculty Scholarship

Several American political candidates and administrations have both run and served under the “progressive” banner for more than a century, right through the 2016 election season. For the most part these have pursued interventionist antitrust policies, reflecting a belief that markets are fragile and in need of repair, that certain interest groups require greater protection, or in some cases that antitrust policy is an extended arm of regulation. This paper argues that most of this progressive antitrust policy was misconceived, including that reflected in the 2016 antitrust plank of the Democratic Party. The progressive state is best served by a …

The Challenge Of Regulatory Excellence, Cary Coglianese

All Faculty Scholarship

Regulation is a high-stakes enterprise marked by tremendous challenges and relentless public pressure. Regulators are expected to protect the public from harms associated with economic activity and technological change without unduly impeding economic growth or efficiency. Regulators today also face new demands, such as adapting to rapidly changing and complex financial instruments, the emergence of the sharing economy, and the potential hazards of synthetic biology and other innovations. Faced with these challenges, regulators need a lodestar for what constitutes high-quality regulation and guidance on how to improve their organizations’ performance. In the book Achieving Regulatory Excellence, leading regulatory experts …

Gamblerization Of Post-Communist Society In Central Europe, Zdeněk Szczyrba, David Fiedor, Irena Smolová

International Conference on Gambling & Risk Taking

Countries of Central European region (Czech Republic, Slovakia, Poland and Hungary) joined a new stage of their development after 1989. In these countries, there was a building process of capitalism which went in parallel with far-reaching structural economic and social changes; such as the privatization of economies, de-industrialization but also gamblerization of society. Clarifying this term, gamblerization, it could be described as the process of a continuous penetration of gaming facilities in the area accompanied by an increased availability and accessibility of gaming machines in the society. It is important to say that this process was particularly allowed owing to …

Slides: Perspectives On Water Management In Arizona, Kathy Jacobs

Innovations in Managing Western Water: New Approaches for Balancing Environmental, Social and Economic Outcomes (Martz Summer Conference, June 11-12)

Presenter: Kathy Jacobs, Director, Center for Climate Adaptation Science and Solutions (CCASS), Department of Soil, Water and Environmental Science, University of Arizona

25 slides

The Mess At Morgan: Risk, Incentives And Shareholder Empowerment, Jill E. Fisch

All Faculty Scholarship

The financial crisis of 2008 focused increasing attention on corporate America and, in particular, the risk-taking behavior of large financial institutions. A growing appreciation of the “public” nature of the corporation resulted in a substantial number of high profile enforcement actions. In addition, demands for greater accountability led policymakers to attempt to harness the corporation’s internal decision-making structure, in the name of improved corporate governance, to further the interest of non-shareholder stakeholders. Dodd-Frank’s advisory vote on executive compensation is an example.

This essay argues that the effort to employ shareholders as agents of public values and, thereby, to inculcate corporate …

Reinventing Copyright And Patent, Abraham Bell, Gideon Parchomovsky

All Faculty Scholarship

Intellectual property systems all over the world are modeled on the one-size-fits-all principle. However important or unimportant, inventions and original works of authorship receive the same scope of protection, for the same period, backed by the same variety of legal remedies. Metaphorically speaking, all intellectual property is equal under the law. This equality comes at a heavy price. The equality principle gives all creators access to the same remedies, even when those remedies create perverse incentives. Moreover, society overpays for innovation by inflicting on society more monopoly losses than are strictly necessary to incentivize production.

In this Article, we propose …

Toward A Closer Integration Of Law And Computer Science, Christopher S. Yoo

All Faculty Scholarship

Legal issues increasingly arise in increasingly complex technological contexts. Prominent recent examples include the Stop Online Piracy Act (SOPA) and the Protect Intellectual Property Act (PIPA), network neutrality, the increasing availability of location information, and the NSA’s surveillance program. Other emerging issues include data privacy, online video distribution, patent policy, and spectrum policy. In short, the rapid rate of technological change has increasingly shown that law and engineering can no longer remain compartmentalized into separate spheres. The logical response would be to embed the interaction between law and policy deeper into the fabric of both fields. An essential step would …

Human Rights, Regulation, And National Security, Katina Michael, Simon Bronitt

Professor Katina Michael

Law disciplines technology, though it does so in a partial and incomplete way as reflected in the old adage that technology outstrips the capacity of law to regulate it. The rise of new technologies poses a significant threat to human rights – the pervasive use of CCTV (and now mobile CCTV), telecommunications interception, and low-cost audio-visual recording and tracking devices (some of these discreetly wearable), extend the power of the state and corporations significantly to intrude into the lives of citizens.

Agenda: Opportunities And Obstacles To Reducing The Environmental Footprint Of Natural Gas Development In The Uintah Basin, Utah State University. Bingham Entrepreneurship And Energy Research Center, University Of Colorado Boulder. Natural Resources Law Center. Intermountain Oil And Gas Bmp Project, Houston Advanced Research Center. Environmentally Friendly Drilling Systems Program

Opportunities and Obstacles to Reducing the Environmental Footprint of Natural Gas Development in Uintah Basin (October 14)

A public workshop to discuss “Opportunities and Constraints to Reducing the Environmental Footprint of Natural Gas Development” was held in Vernal, Utah on October 14, 2010 at the Vernal campus of Utah State University. The workshop was sponsored by Utah State University, The Bingham Energy Research Center; The University of Colorado Natural Resources Law Center; and the Houston Advanced Research Center, Environmentally Friendly Drilling Program.

The meeting included presentations and panel discussions on:

• Trends and environmental issues related to natural gas development
• Examples of environmental innovations being used in the Uintah Basin
• Examples of innovation & tools from outside the …

The Social Implications Of Emerging Technologies, Katina Michael

Professor Katina Michael

As the Program Committee Chair, I would like to first and foremost thank the forty person strong international program committee for their support, feedback and contributions from the outset. The Committee itself was made up of researchers from 11 countries, covering diverse disciplines and expertise. In their own right members of the program committee are renowned researchers, cited in many of the papers appearing in this year’s ISTAS full proceedings, and over the years appearing in associated publications such as IEEE Technology and Society Magazine. It was such an honour to work with persons possessing a truly collaborative spirit, some …

The Need For Better Analysis Of High Capacity Services, George S. Ford, Lawrence J. Spiwak

GEORGE S FORD

In 1999, the Federal Communications Commission (“FCC”) began to grant incumbent local exchange carriers (“LECs”) pricing flexibility on special access services in some Metropolitan Statistical Areas (“MSAs”) when specific evidence of competitive alternatives is present. The propriety of that deregulatory move by the FCC has been criticized by the purchasers of such services ever since. Proponents of special access price regulation rely on three central arguments to support a retreat to strict price regulation: (1) the market(s) for special access and similar services is unduly concentrated; (2) rates of return on special access services, computed using FCC ARMIS data, are …

Insurance Against Misinformation In The Securities Market, Tom Baker

All Faculty Scholarship

Prepared at the request of the Task Force to Modernize Securities Legislation in Canada, this study describes and evaluates evaluate a new capital markets insurance concept: securities misinformation insurance. This new insurance would compensate investors for losses caused by securities law violations. The most powerful objection to this new concept is that investors do not need a new insurance program for securities misinformation losses. Individual and institutional investors already can spread securities misinformation losses by holding a diversified portfolio. Nevertheless, a securities misinformation insurance program has the potential to provide systemic benefits: improved compliance with securities laws (resulting from cost …

Management-Based Strategies For Improving Private Sector Environmental Performance, Cary Coglianese, Jennifer Nash

All Faculty Scholarship

Improvements in environmental quality depend in large measure on changes in private sector management. In recognition of this fact, government and industry have begun in recent years to focus directly on shaping the internal management practices of private firms. New management-based strategies can take many forms, but unlike conventional regulatory approaches they are linked by their distinctive focus on management practices, rather than on environmental technologies or emissions targets. This article offers the first sustained analysis of both public and private sector initiatives designed specifically to improve firms' environmental management. Synthesizing the results of a conference of leading scholars and …

Enron And The Dark Side Of Shareholder Value, William W. Bratton

All Faculty Scholarship

No abstract provided.

Controlling Adult Oriented Businesses In Norfolk, Virginia, 1943–1998: A Descriptive Case Study, Janet Gail Nicula

Theses and Dissertations in Urban Services - Urban Management

The purpose of this case study is to analyze methods used in the city of Norfolk, Virginia to control adult oriented businesses (AOBs). Evidence is derived from several sources: interviews, analysis of government records, documents, historical photographs, and current observations.

The research examines approaches taken by the city to control AOBs in three locations: Main Street-Granby Street, the north end of Hampton Boulevard, and Little Creek Road-Shore Drive. Research questions addressed (1) how AOBs in Norfolk were controlled, (2) what or who instigated the process, (3) the Navy's role in the process, (4) role of Norfolk Redevelopment and Housing Authority, …

Drafting And Interpreting Sensitive Gas Purchase Contract Provisions, William D. Watson

Natural Gas Symposium: Contract Solutions for the Future of Regulatory Environment (March 24-25)

8 pages.

Agenda: Natural Gas Symposium: Contract Solutions For The Future Of Regulatory Environment, University Of Colorado Boulder. Natural Resources Law Center, University Of Houston. Law Center

Natural Gas Symposium: Contract Solutions for the Future of Regulatory Environment (March 24-25)

Contents:

The natural gas industry in transition / Ruth A. Maurer -- Legislative prospects for wellhead pricing of natural gas / Richard G. Morgan -- Off-system sales : will they ever return? : the interstate side / Robert C. McHugh -- Off-system sales : will they ever return? / Paul F. O'Konski -- Contractual and other considerations affecting producers, pipelines and distributors during current period of market demand constraints / Michael J. Manning -- Section 311 and 312 of the Natural Gas Policy Act of 1978 and Hinshaw pipelines / Lauren Eaton -- Drafting and interpreting sensitive gas purchase contract …