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Befuddlement Betwixt Two Fulcrums: Calibrating The Scales Of Justice To Ascertain Fraudulent Transfers In Leveraged Buyouts, John H. Ginsberg, M. Katie Burgess, Zachary R. Caldwell, Daniel R. Czerwonka Jan 2010

Befuddlement Betwixt Two Fulcrums: Calibrating The Scales Of Justice To Ascertain Fraudulent Transfers In Leveraged Buyouts, John H. Ginsberg, M. Katie Burgess, Zachary R. Caldwell, Daniel R. Czerwonka

John H. Ginsberg

In a leveraged buyout, a company goes deep into debt and grants liens on its assets to finance the purchase of itself. The company’s risk of insolvency increases with its debt burden. Unsecured creditors of the company are exposed to insolvency risk without compensation, unlike the parties to the leveraged buyout—buyer, seller and lender—all of whom expect good returns on the lesser risks to which they are exposed. When a leveraged buyout leaves the acquired company with “unreasonably small capital” such that insolvency is “reasonably foreseeable” upon consummation of the buyout, unsecured creditors may have recourse to constructive-fraudulent-transfer law. They …


Energy-Efficiency And Wind Energy: Investment Strategy For Venture Capital And Private Equity, Nicolas L. Boittin Jan 2010

Energy-Efficiency And Wind Energy: Investment Strategy For Venture Capital And Private Equity, Nicolas L. Boittin

Nicolas L Boittin

Some renewable sources of energy are becoming economically profitable and legislatures are providing greater legal predictability for investment in this area. Many states have implemented Renewable Portfolio Standards (RPSs) and the U.S. Congress extended the investment period for Investment Tax Credits (ITCs) recently. Wind energy is the most mature renewable technology and energy-efficiency offers high profit potential in the short term. These two areas thus provide great investment opportunities for venture capital funds interested in clean technology and private equity funds focusing in renewable energy buyouts.


Negligent Insider Trading: A Viable Theory Of Civil Liability?, Steven Brody Jan 2010

Negligent Insider Trading: A Viable Theory Of Civil Liability?, Steven Brody

Steven Brody

A flurry of civil suits by the SEC and private parties has followed on the heels of the collapse of the subprime mortgage market. Many of these actions raise theories of liability that are still developing in the area of white collar crime and securities fraud. As the SEC and private parties seek to explore new theories under which to bring suit, this article briefly addresses one as-yet unexplored avenue that many academic authorities have alluded to as possible under Section 17 of the Securities Act of 1933: that of “negligent insider trading.” While such a theory has yet to …


Leveraged Buyout Bankruptcies, The Problem Of Hindsight Bias, And The Credit Default Swap Solution, Michael N. Simkovic, Benjamin S. Kaminetzky Jan 2010

Leveraged Buyout Bankruptcies, The Problem Of Hindsight Bias, And The Credit Default Swap Solution, Michael N. Simkovic, Benjamin S. Kaminetzky

Michael N Simkovic

No abstract provided.


Landlords Of Last Resort: Should The Government Subsidize The Mortgages Of Privately-Owned, Small Multifamily Buildings?, David J. Reiss Jan 2010

Landlords Of Last Resort: Should The Government Subsidize The Mortgages Of Privately-Owned, Small Multifamily Buildings?, David J. Reiss

David J Reiss

The absence of stable financing options has long caused difficulties for owners of small multifamily buildings. Despite the ongoing maturation of a secondary mortgage market for small multifamily mortgages, this housing stock continues to shrink due to abandonment, demolition, foreclosure and other causes. As these buildings house many low-income households, some have suggested subsidizing the financing costs for the owners of these buildings. Any proposal to subsidize these landlords to meet affordable housing goals, however, should be predicated on determinations that (i) it is an efficient means to provide housing to the neediest tenants and (ii) the multifamily mortgage market …


Book Review: Dan Immergluck, Foreclosed: High-Risk Lending, Deregulation, And The Undermining Of America’S Mortgage Market, David J. Reiss Jan 2010

Book Review: Dan Immergluck, Foreclosed: High-Risk Lending, Deregulation, And The Undermining Of America’S Mortgage Market, David J. Reiss

David J Reiss

This is a book review of Dan Immergluck, FORECLOSED: HIGH-RISK LENDING, DEREGULATION, AND THE UNDERMINING OF AMERICA’S MORTGAGE MARKET (Cornell University Press 2009).


Fannie Mae And Freddie Mac: Creatures Of Regulatory Privilege, David J. Reiss Jan 2010

Fannie Mae And Freddie Mac: Creatures Of Regulatory Privilege, David J. Reiss

David J Reiss

This book chapter addresses the appropriate role of Fannie Mae and Freddie Mac, the government-chartered, privately owned mortgage finance companies, in the United States housing finance sector. The federal government recently placed Fannie and Freddie in conservatorship. These two massive companies are profit-driven, but as government-sponsored enterprises they also have a government-mandated mission to provide liquidity and stability to the United States mortgage market and to achieve certain affordable housing goals. How the two companies should exit their conservatorship has implications that reach throughout the global financial markets and are of key importance to the future of American housing finance …