Open Access. Powered by Scholars. Published by Universities.®
- Keyword
-
- Financial crisis (2)
- Algorithmic discrimination (1)
- Artificial intelligence (1)
- Bank supervision (1)
- Banking Act of 1933 (1)
-
- Biased inputs (1)
- Big data (1)
- Boston University Law Review (1)
- COVID-19 (1)
- Central banking (1)
- Corporate debt (1)
- Corporate governance (1)
- Credit lending (1)
- Credit pricing (1)
- Crisis containment (1)
- Embezzlement (1)
- Emergency lending (1)
- Fair lending (1)
- Federal Reserve (1)
- Honest banker (1)
- Lending violation (1)
- Machine learning (1)
- Minnesota Law Review (1)
- Office of Federal Housing Enterprise Oversight (OFHEO) (1)
- Pandemic (1)
- Small business (1)
- Stress testing (1)
- Supervisory Capital Assessment Program (SCAP) (1)
- Virginia Law Review (1)
Articles 1 - 4 of 4
Full-Text Articles in Law
The Input Fallacy, Talia B. Gillis
The Input Fallacy, Talia B. Gillis
Faculty Scholarship
Algorithmic credit pricing threatens to discriminate against protected groups. Traditionally, fair lending law has addressed such threats by scrutinizing inputs. But input scrutiny has become a fallacy in the world of algorithms.
Using a rich dataset of mortgages, I simulate algorithmic credit pricing and demonstrate that input scrutiny fails to address discrimination concerns and threatens to create an algorithmic myth of colorblindness. The ubiquity of correlations in big data combined with the flexibility and complexity of machine learning means that one cannot rule out the consideration of protected characteristics, such as race, even when one formally excludes them. Moreover, using …
The Banker Removal Power, Da Lin, Lev Menand
The Banker Removal Power, Da Lin, Lev Menand
Faculty Scholarship
The Federal Reserve (“the Fed”) can remove bankers from office if they violate the law, engage in unsafe or unsound practices, or breach their fiduciary duties. The Fed, however, has used this power so rarely that few even realize it exists. Although major U.S. banks have admitted to repeated and flagrant lawbreaking in recent years, the Fed has never removed a senior executive from one of these institutions.
This Article offers the first comprehensive account of the banker removal power. It makes four contributions. First, drawing on a range of primary sources, it recovers the power’s statutory foundations, showing that …
Credit, Crises And Infrastructure: The Differing Fates Of Large And Small Businesses, Todd Baker, Kathryn Judge, Aaron Klein
Credit, Crises And Infrastructure: The Differing Fates Of Large And Small Businesses, Todd Baker, Kathryn Judge, Aaron Klein
Faculty Scholarship
This Essay sheds new light on the importance of credit creation infrastructure in determining who actually receives government support during periods of distress, and who continues to benefit after the acute phase of a crisis and the government’s formal support programs come to an end. The pandemic revealed, and the government’s response accentuated, meaningful asymmetries in the capacities of small and large businesses to access needed funding.
At first glance, it would seem that small businesses benefitted more than large ones from the government’s pandemic-support programs, as more government funds flowed into small businesses. Yet closer inspection of the range …
Stress Testing During Times Of War, Kathryn Judge
Stress Testing During Times Of War, Kathryn Judge
Faculty Scholarship
In the spring of 2009, the United States was mired in the greatest recession it had faced since the Great Depression. In March, the Dow Jones Industrial Average had fallen to 6,594.44, a total decline of 53.4 percent from its peak in the fall of 2007. The official unemployment rate was over 9 percent and still trending upward, eventually exceeding 10 percent. With the support of Congress, the Federal Reserve (the Fed) and other financial regulators had launched an array of initiatives to contain the fallout of what had become a global financial crisis. These interventions, including a massive recapitalization …