Law Commons^™

Banking Deregulation, Local Credit Supply, And Small Business Growth, Prasad Krishnamurthy

Prasad Krishnamurthy

I show that the deregulation of bank branching in the United States lowered the sensitivity of small business growth to local credit supply. In urban markets, within-state deregulation of branching resulted in an 80% decrease in the effect of local deposit growth on the growth of establishments with 20-99 employees. Across-state deregulation had an effect of comparable size in county markets. I find effects of similar magnitude using employment growth and payroll growth as measures of business growth. Using the history of litigation over the scope of state bank regulation, I show these results continue to hold for states that …

Logos, Links, And Lending: Towards Standardized Privacy And Use Policies For Banking Web Sites, Walter Effross

Walter Effross

As customers go on-line rather than stand in line, financial institutions have been quick to accommodate this new form of interaction by constructing banking Web sites. However, federal regulators are increasingly concerned that the operators of these sites make appropriate disclosures to consumers and implement privacy policies for information collected through such sites. This article discusses the latest efforts by regulators and recommends that banks make the text of required disclosures displayed on their Web pages into hyperlinks to the home pages of the appropriate regulatory agencies. In addition, the article proposes the creation of industry-wide icons (such as the …

Cyber-Banking Gains Currency And Interest, Walter Effross

Walter Effross

No abstract provided.

Feds Should Use Inventive Method To Restructure Home Debt, Prasad Krishnamurthy

Prasad Krishnamurthy

No abstract provided.

Diagnosing Finance's Failures: From Economic Idealism To Legal Realism, Frank Pasquale

Frank A. Pasquale

This book review critically examines a recent work by Robert Shiller, one of the world's leading economists. Shiller’s Finance and the Good Society reflects on contemporary financial institutions and offers principles for incrementally improving them. It fails to recognize the possibility that finance needs more than cosmetic reform.

The field of law and economics often brings the insights of behavioral economists like Shiller to current regulatory debates. This review takes the reverse approach, offering a lawyer’s perspective on Shiller’s theories. We can only hope to reform the finance sector by addressing power dynamics among boards, CEOs, traders, and investors. To …