Law Commons^™

Responding To Foreclosures In Cuyahoga County: An Assessment Of Progress, Alan Weinstein, Kathryn Hexter, Molly Schnoke

Kathryn W. Hexter

In August 2006, Cleveland State University was asked to conduct an initial assessment of the Cuyahoga County Commissioners' Report and Recommendations on Foreclosure that would assist the county in planning for future phases of the project. This report presents the findings of this initial assessment of the first 18 months of the initiative. It documents the process undertaken by the county, assesses the progress made toward reaching goals, identifies successes and concerns, and offers some preliminary recommendations about program operations. It also offers suggestions for a more formal evaluation process going forward

Responding To Foreclosures In Cuyahoga County: A Pilot Initiative, Interim Report, Alan Weinstein, Kathryn Hexter, Molly Schnoke

Kathryn W. Hexter

The Center for Civic Education and the Cleveland-Marshall College of Law released their report, on May 12, 2008. The report, prepared for the Cuyahoga County Board of Commissioners, is an assessment of the County's comprehensive approach to addressing foreclosures on two levels: 1) Making foreclosure proceedings faster and fairer and 2) Creating an early intervention program to help residents prevent foreclosure.

How China Plans To Blacklist Financially Unstable Citizens, Caren Morrison

Caren Myers Morrison

No abstract provided.

China's Plan To Put Two-Faced Citizens On Credit Blacklist Isn't All That Foreign, Caren Morrison

Caren Myers Morrison

No abstract provided.

The Law Of Electronic Funds Transfers, Benjamin Geva

Benjamin Geva

Provides a clear understanding of the law governing electronic funds transfers, with emphasis on global and domestic wire transfers, ACH payments and consumer transactions. Concise analysis of U.C.C. Article 4A, EFTA, Regulation E and other pertinent law gives you the information you need to understand the complex legal ramifications of electronic funds transfers.

Banking And Negotiable Instruments (Supplement), Winter 2013, Benjamin Geva

Benjamin Geva

Course Number 2420

The Payment Order Of Antiquity And The Middle Ages: A Legal History, Benjamin Geva

Benjamin Geva

Examining the legal history of the order to pay money initiating a funds transfer, the author tracks basic principles of modern law to those that governed the payment order of Antiquity and the Middle Ages. Exploring the legal nature of the payment order and its underpinning in light of contemporary institutions and payment mechanisms, the book traces the evolution of money, payment mechanisms and the law that governs them, from developments in Ancient Mesopotamia, Ancient Greece, Rome, and Greco-Roman Egypt, through medieval Europe and post-medieval England. Doctrine is examined in Jewish, Islamic, Roman, common and civil laws. Investigating such diverse …

Bankruptcy Law As A Liquidity Provider, Kenneth Ayotte, David Skeel

Kenneth Ayotte

Since the outset of the recent financial crisis, liquidity problems have been cited as the cause behind the bankruptcies and near bankruptcies of numerous firms, ranging from Bear Stearns and Lehman Brothers in 2008 to Kodak more recently. This paper expands the prevailing normative theory of corporate bankruptcy — the Creditors’ Bargain theory — to include a role for bankruptcy as a provider of liquidity. The Creditors’ Bargain theory argues that bankruptcy law should be limited to solving problems caused by multiple, uncoordinated creditors, but focuses almost exclusively on the problem of creditor runs. We argue that two well-known problems …

Internet Casinos: A Sure Bet For Money Laundering, Jon Mills

Jon L. Mills

Since the end of World War II, American society has seen the emergence of technology promising to make life easier, better and longer lasting. The more recent explosion of the Internet is fulfilling the dreams of the high-tech pundits as it provides global real-time communication links and makes the world's knowledge universally available. Privacy concerns surrounding the develop-ment of the Internet have mounted, and in response, service providers and web site operators have enabled web users to conduct transactions in nearly complete anonymity. While anonymity respects individual privacy, anonymity also facilitates criminal activities needing secrecy. One such activity is money …

On The Rise Of Shareholder Primacy, Signs Of Its Fall, And The Return Of Managerialism (In The Closet), Lynn Stout

Lynn A. Stout

In their 1932 opus "The Modern Corporation and Public Property," Adolf Berle and Gardiner Means famously documented the evolution of a new economic entity—the public corporation. What made the public corporation “public,” of course, was that it had thousands or even hundreds of thousands of shareholders, none of whom owned more than a small fraction of outstanding shares. As a result, the public firm’s shareholders had little individual incentive to pay close attention to what was going on inside the firm, or even to vote. Dispersed shareholders were rationally apathetic. If they voted at all, they usually voted to approve …

Reforming The International Investment Regime: Lessons From International Trade Law, Frank Garcia, Lindita Ciko, Apurv Gaurav

Frank J. Garcia

Dirty Debts Sold Dirt Cheap, Dalie Jimenez

Dalie Jimenez

More than 77 million Americans have a debt in collections. Many of these debts will be sold to debt buyers for pennies, or fractions of pennies, on the dollar. This Article details the perilous path that debts travel as they move through the collection ecosystem. Using a unique dataset of 84 consumer debt purchase and sale agreement, it examines the manner in which debts are sold, oftentimes as simple data on a spreadsheet, devoid of any documentary evidence. It finds that in many contracts, sellers disclaim all warranties about the underlying debts sold or the information transferred. Sellers also sometimes …

Human Equity? Regulating The New Income Share Agreements, Diane M. Ring, Shu-Yi Oei

Diane M. Ring

License To Deal: Mandatory Approval Of Complex Financial Products, Saule Omarova

Saule T. Omarova

“There is definitely going to be another financial crisis around the corner because we haven’t solved any of the things that caused the previous crisis,” said hedge fund legend Mark Mobius, speaking in Tokyo nearly a full year after the United States officially embarked upon the greatest reform of financial services regulation since the New Deal. Today, the world is still reeling from the recent financial crisis, which ravaged even the strongest economies and left them battling recession, budget deficits, soaring unemployment, and political discontent. Facing another financial crisis in this situation is a frightening prospect. National governments, individually or …

Risks, Rules, And Institutions: A Process For Reforming Financial Regulation, Saule Omarova, Adam Feibelman

Saule T. Omarova

It is fair to say that reforming the regulation of the financial sector is currently one of the most hotly debated issues on the policymaking agenda. Proposals for such reform are proliferating, and the official sector appears committed to adopting at least some meaningful reforms in the near-term. Broadly speaking, this movement toward regulatory reform emphasizes the need for structural reforms, outlines specific rules and regulations targeting primarily the perceived causes of the current crisis, and is carried along by a strong sense of the moment. Rather than add to the body of institutional and substantive proposals, this Article articulates …

Bretton Woods 1.0: A Constructive Retrieval For Sustainable Finance, Robert Hockett

Robert C. Hockett

Global trade imbalance and domestic financial fragility are intimately related. When a nation runs persistently massive current account deficits to maintain global liquidity as has the United States now for decades, its central bank effectively relinquishes exchange rate flexibility to become a de facto central bank to the world. That in turn prevents the bank from playing its essential credit-modulatory role at home, at least absent strict capital controls that are difficult to administer and have long been taboo. And this can in turn render credit-fueled asset price bubbles and busts all but impossible to prevent, irrespective of the nation's …

Symposium Introduction: Offshore Accounts, Corporate Income Shifting, And Executive Compensation, Leslie Book

Leslie Book

No abstract provided.

Rules, Standards, And Complexity In Capital Regulation, Prasad Krishnamurthy

Prasad Krishnamurthy

This article considers two fundamental issues in the design of bank capital regulation — the choice of a rule or standard and the level of complexity in that rule or standard — by revisiting the historical adoption of minimum-capital requirements and risk-based capital requirements. Both theory and the historical evidence suggest that a minimum-capital requirement is optimal when bank regulators seek to manage risks that are costly to estimate and that a risk-weighted capital requirement, in contrast, requires a precise understanding of both bank risk and the strategic response of banks to regulation. This article uses historical evidence to illustrate …

Market Conduct Supervisors And Their Interactions With Prudential Authorities

Patricia A. McCoy

This presentation addressed potential commonalities and conflicting interests of market conduct and prudential supervisors.

Editor, Challenges In Global Financial Services, Natalya Shnitser, Érica Gorga, Roberta Romano

Natalya Shnitser

This is an edited transcript of the proceedings of the Yale Law School Center for the Study of Corporate Law’s Sullivan & Cromwell Conference on Challenges in Global Financial Services, which was held on September 20, 2013. The conference brought together policymakers, legal practitioners, members of the financial community, and academics from finance, economics and law to discuss the current challenges in the organization and regulation of global financial services.

The roundtable consisted of four panel discussions. The first panel considered “Bank Capital and Liquidity Requirements.” Panelists were Stijn Claessens, Assistant Director, Research Department, International Monetary Fund; Michael H. Krimminger, …

Regulatory Arbitrage, Extraterritorial Jurisdiction And Dodd-Frank: The Implications Of Us Global Otc Derivative Regulation, Christian Johnson

Christian A. Johnson

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 …

Regulation Of Speculation In The Financial Market: Focusing On Derivative Instruments, Christopher Chao-Hung Chen

Christopher Chao-hung Chen

This article argues that market speculation is a conduct to acquire benefits by undertaking risk. Derivative instruments are powerful tools for market participants to conduct market speculation, which may help hedging, market making and completing investment market. However, pure and excessive speculation might cause net loss of market efficiency and create external costs. Some speculative transactions may imply asymmetric information. Market speculation might also lead to market abuse and even systemic risk. These reasons provide the basis to regulate market speculation by derivatives trading. This paper argues that Taiwan law might build on current regulatory model centring on the type …

The Construction Of Suitability Obligation Of Financial Institutions When Selling Structured Products: From Comparative Law Perspective, Christopher Chao-Hung Chen

Christopher Chao-hung Chen

The purpose of this article is to examine the suitability rules regarding structured products under Taiwan law from a comparative law perspective. After the global financial crisis, Taiwan has imposed specific suitability obligations on financial institutions when they promote derivatives and structured products. However, the suitability rule is only placed in administrative regulations and its scope is also limited. In addition, Taiwan law does not distinguish different types of relationships between a financial institution and a client. Furthermore, the biggest challenge to the suitability rule is to define the meaning of ‘suitable’. This article argues that the starting point is …

Resolving Large, Complex Financial Firms, Thomas Fitzpatrick, Mark Greenlee, James Thomson

James B Thomson

How to best manage the failure of systemically important fi nancial fi rms was the theme of a recent conference at which the latest research on the issue was presented. Here we summarize that research, the discussions that it sparked, and the areas where considerable work remains.

How Well Does Bankruptcy Work When Large Financial Firms Fail? Some Lessons From Lehman Brothers, Thomas Fitzpatrick, James Thomson

James B Thomson

There is disagreement about whether large and complex financial institutions should be allowed to use U.S. bankruptcy law to reorganize when they get into financial difficulty. We look at the Lehman example for lessons about whether bankruptcy law might be a better alternative to bailouts or to resolution under the Dodd-Frank Act’s orderly liquidation authority. We find that there is no clear evidence that bankruptcy law is insufficient to handle the resolution of large complex financial firms.