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Banking and Finance Law

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Articles 31 - 60 of 73

Full-Text Articles in Law

Spatial Competition, Network Externalities, And Market Structure: An Application To Commercial Banking, Prasad Krishnamurthy Jul 2011

Spatial Competition, Network Externalities, And Market Structure: An Application To Commercial Banking, Prasad Krishnamurthy

Prasad Krishnamurthy

I develop a model of spatial competition between multi-branch firms in which consumers value the price of services, spatial proximity to their home branch, and the number of other branches in the firm's network. The model delivers within and across market predictions on the pattern and density of branching, the relationship of concentration to market size, the price-concentration relationship, and price dispersion. I consider the applicability of this model to the commercial banking market for retail deposits. I test the model's predictions by utilizing variation in the timing and extent of within-state branching restrictions on banks and bank holding companies …

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Testimony Before The U.S. House Of Representatives Appropriations Committee, Subcommittee On Agriculture, Rural Development. Food And Drug Administration, And Related Agencies, Regarding The “Commodity Futures Trading Commission”, Michael Greenberger Feb 2011

Testimony Before The U.S. House Of Representatives Appropriations Committee, Subcommittee On Agriculture, Rural Development. Food And Drug Administration, And Related Agencies, Regarding The “Commodity Futures Trading Commission”, Michael Greenberger

Michael Greenberger

Testimony before the U.S. House of Representatives Appropriations Committee, Subcommittee on Agriculture, Rural Development. Food and Drug Administration, and Related Agencies on the role of the Commodity Futures Trading Commission’s regulatory efforts Pertaining to excessive speculation within U.S. energy futures markets in general, and futures based on U.S. delivered crude oil contracts.

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The Subprime Virus: Reckless Credit, Regulatory Failure, And Next Steps Dec 2010

The Subprime Virus: Reckless Credit, Regulatory Failure, And Next Steps

Patricia A. McCoy

In this lively new book, Kathleen C. Engel and Patricia A. McCoy tell the full story behind the subprime crisis. The authors, experts in the law and economics of financial regulation and consumer lending, offer a sharply reasoned, but accessible account of the actions that produced the greatest economic collapse since the Great Depression.

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Exigent And Unusual Circumstances: The Federal Reserve And The Financial Crisis, Christian Johnson Dec 2010

Exigent And Unusual Circumstances: The Federal Reserve And The Financial Crisis, Christian Johnson

Christian A. Johnson

The U.S. Federal Reserve has committed hundreds of billions of dollars in unprecedented lending activities and purchases of mortgage-backed securities based upon its authority under the Federal Reserve Act, and particularly upon its interpretation of Section 13(3), a formerly untested and unused clause in the Federal Reserve Act. Such efforts effectively doubled the size of the Federal Reserve’s balance sheet. This expansion of authority exercised by the Federal Reserve not only has significance in today's financial crisis but also sets a precedent for future Federal Reserve actions. The Federal Reserve has relied on Section 13(3) to authorize its controversial lending …

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Lessons For Competition Law From The Economic Crisis: The Prospect For Antitrust Responses To The 'Too-Big-To-Fail' Phenomenon, Jesse Markham Dec 2009

Lessons For Competition Law From The Economic Crisis: The Prospect For Antitrust Responses To The 'Too-Big-To-Fail' Phenomenon, Jesse Markham

Jesse Markham

This article explores the failure of antitrust law to prevent or intercede to remedy the catastrophic failures of large enterprises. Given the historic focus of antitrust on problems relating to the dangers of out-sized business enterprise, the failure of antitrust in this regard raises interesting questons about whether its mission has drifted from the law's original intent. The article explores the current relationship between antitrust rules and "bigness" and offers a modest proposal for reviving antitrust as a public policy tool that might help to address the too-big-to-fail phenomenon.

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Federal Preemption, Regulatory Failure And The Race To The Bottom In Us Mortgage Lending Standards Dec 2009

Federal Preemption, Regulatory Failure And The Race To The Bottom In Us Mortgage Lending Standards

Patricia A. McCoy

No abstract provided.

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Just Contracts And Catholic Social Teaching: A Perspective From American Law, Vincent Rougeau Dec 2009

Just Contracts And Catholic Social Teaching: A Perspective From American Law, Vincent Rougeau

Vincent D. Rougeau

No abstract provided.

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The Enigma Of Clearing Buy Side Otc Derivatives, Christian Johnson Nov 2009

The Enigma Of Clearing Buy Side Otc Derivatives, Christian Johnson

Christian A. Johnson

Congress is currently drafting bills and holding hearings on regulating the over-the-counter (“OTC”) derivatives market. One principal focus is on reducing credit and systemic risk by eventually requiring the majority of OTC derivatives to be cleared through registered clearing organizations or agencies (hereinafter “clearing-houses”). 

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Il Contagio Dei Subprime Dec 2008

Il Contagio Dei Subprime

Patricia A. McCoy

No abstract provided.

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The Financial Sector Upheaval Of 2008: Sociological Antecedents And Their Implications For Investment Company Regulation, Larry Barnett Dec 2008

The Financial Sector Upheaval Of 2008: Sociological Antecedents And Their Implications For Investment Company Regulation, Larry Barnett

Larry D Barnett

In 2008, the United States experienced a severe contraction in the availability of credit, a marked reduction in the price of common stocks, and an appreciable increase in interest rates on debt instruments issued by business entities and by state and local governments. The premise of the instant article is that, although this upheaval was economic in form and sudden in occurrence, it stemmed from change that was sociological in character and that started in prior decades. Specifically, the 2008 upheaval in finance is traced to a shift in social values among Americans - namely, an increased prevalence of hedonism …

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From Credit Denial To Predatory Lending: The Challenge Of Sustaining Minority Homeownership Dec 2007

From Credit Denial To Predatory Lending: The Challenge Of Sustaining Minority Homeownership

Patricia A. McCoy

Years of discriminatory behavior against minority households have damaged their ability to build wealth. One of the most financially destructive practices endured by minority households is the excessive overpayment to finance a home purchase or access accumulated equity in a home. The market conditions that position blacks, and to a lesser extent, Latino households, to be the principal targets of predatory mortgage lending have their roots in decades of legally sanctioned housing market discrimination. Some minority households lack the financial knowledge or awareness to protect themselves. In other cases, years of discriminatory financial practices have contributed to rendering them ineligible …

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The Central Bank’S Role In The Payment System: Legal And Policy Aspects, Christian Johnson, Robert Steigerwald Dec 2007

The Central Bank’S Role In The Payment System: Legal And Policy Aspects, Christian Johnson, Robert Steigerwald

Christian A. Johnson

The paper starts with a brief overview of the payment system and the roles central banks have traditionally played as payment intermediaries. In particular, it discusses interbank settlement and the role of bank money as a settlement asset. The paper shows that the concept of settlement finality, which has both legal and risk management dimensions, is a key attribute of any form of payment and is not a unique attribute of payments made through a central bank.

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Assessing A Decade Of Interstate Bank Branching, Christian Johnson, Tara Rice Dec 2007

Assessing A Decade Of Interstate Bank Branching, Christian Johnson, Tara Rice

Christian A. Johnson

U.S. banking regulation has historically prohibited the ability of a bank to open or own a branch located outside of its home state, commonly referred to as interstate branching. Only since the passage of the Riegle-Neal Interstate Banking and Branching Efficiency Act (IBBEA) in 1994 have banks have been able to engage in interstate branching, though subject to state restrictions. Despite IBBEA's removal of branching barriers, it still allowed the states to impose restrictions on the entry of out-of-state branch offices. This article describes the changes in Federal and state interstate branching law since passage of IBBEA and reviews how …

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Mutual Funds, Hedge Funds, And The Public-Private Dichotomy In A Macrosociological Framework For Law, Larry D. Barnett Dec 2007

Mutual Funds, Hedge Funds, And The Public-Private Dichotomy In A Macrosociological Framework For Law, Larry D. Barnett

Larry D Barnett

Macrosociology considers law to be one of the institutions of society and, hence, a fundamental component of a social system. Four macrosociological propositions underlie the instant paper: (i) the institutions comprising a social system are, in the long term, compatible with one another; (ii) the compatibility of institutions involves, inter alia, concepts that are similar or identical across at least some institutions; (iii) the concepts and doctrines of the institution of law manifest the properties, including the central values, of the social system; and (iv) the properties of the social system are fashioned by system-level forces. Because the propositions are …

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A Bank By Any Other Name..., Christian Johnson, George Kaufman Nov 2007

A Bank By Any Other Name..., Christian Johnson, George Kaufman

Christian A. Johnson

Banks come in a wide variety of forms. These include commercial banks, savings banks, savings and loans, and credit unions. But, all banks are not perceived as equally vital to the economy so as to require the same degree of government regulation to promote their safe and efficient operation. To regulate efficiently, it is necessary to carefully define the entity to be regulated.

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The Financial Services Lawyer's Bookshelf: A Selected Bibliography Of Payment, Clearing And Settlement Resources, Christian Johnson, Robert Steigerwald Sep 2006

The Financial Services Lawyer's Bookshelf: A Selected Bibliography Of Payment, Clearing And Settlement Resources, Christian Johnson, Robert Steigerwald

Christian A. Johnson

To understand today's payment, clearing and settlement systems, we must be aware that these arrangements rely to some extent upon financial and operational technologies that were developed in other times and circumstances.

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Distinguishing Swaps From Futures: A Regulatory History, Christian Johnson Apr 2005

Distinguishing Swaps From Futures: A Regulatory History, Christian Johnson

Christian A. Johnson

Over 20 years since the first official over-the-counter derivative trade went public between IBM and the World Bank, the divide between the OTC and exchange-traded derivatives industries is as wide as ever. Although many firms trade both types, the individual participants in those shops still tend to think of themselves as either a swaps or a futures person. Such division can best be understood by appreciating the regulatory battle in the U.S. over swap regulation. Although much of that battle ended in 2000 with the passage of the Commodity Futures Modernization Act, defining differences continue to distinguish the two industries.

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Justice And The Administrative State: The Fdic And The Superior Bank Failure, Christian Johnson Dec 2004

Justice And The Administrative State: The Fdic And The Superior Bank Failure, Christian Johnson

Christian A. Johnson

This essay demonstrates through the Superior Bank failure how an administrative agency, the FDIC, can act without taking into account what is fair and just for all involved parties, instead maximizing its power or its economic recovery. The author argues that the FDIC lost sight of how it should have responded and not how it could have by giving preferential treatment to Superior's shareholders and attempting to sue the auditor Ernst & Young in contravention of Superior's contractual obligations. The FDIC's actions sublimated the fairness of the insolvency resolution process for the creditors of Superior and exposed Ernst & Young …

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Predatory Lending Practices: Definition And Behavioral Implications Dec 2003

Predatory Lending Practices: Definition And Behavioral Implications

Patricia A. McCoy

No abstract provided.

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Teaching Research Assistants, Christian Johnson Dec 2003

Teaching Research Assistants, Christian Johnson

Christian A. Johnson

Research assistants, are, to borrow from Winston Churchill, "a riddle wrapped in a mystery inside an enigma."

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Demystifying Fas 133 - Part 2, Christian Johnson, Mary Grossman Nov 2003

Demystifying Fas 133 - Part 2, Christian Johnson, Mary Grossman

Christian A. Johnson

This is the second in a two-part series examining the U.S. accounting change. Last week's article gave a general overview, this week the authors focus on hedge accounting.

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Demystifying Fas 133--Part 1, Christian Johnson, Mary Grossman Nov 2003

Demystifying Fas 133--Part 1, Christian Johnson, Mary Grossman

Christian A. Johnson

FAS 133 has generated substantial confusion and expense, especially for end-users acquiring derivatives as hedges. This article will give a general overview, whilst next week's will focus on hedge accounting.

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Close-Out Netting & Set-Off Under U.S. Banking Insolvency Law, Christian Johnson Aug 2003

Close-Out Netting & Set-Off Under U.S. Banking Insolvency Law, Christian Johnson

Christian A. Johnson

The huge role of U.S. banks in the derivatives industry means counterparties must understand the treatment of close-out netting and set-off for an insolvent bank by the Federal Deposit Insurance Corporation (FDIC). Close-out netting and set-off, both of which are typically provided under the ISDA Master Agreement, provide the most effective and efficient way to minimize credit risk with respect to the insolvency of a counterparty.

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The 2002 Isda Master Agreement Made Simple, Christian Johnson Jan 2003

The 2002 Isda Master Agreement Made Simple, Christian Johnson

Christian A. Johnson

The International Swaps and Derivatives Association published a new Master Agreement in December to replace the 1992 agreement. The new agreement represents the work of ISDA's Documentation Committee, with over 100 different members reviewing earlier drafts and providing comments. The trade association has already arranged for netting opinions on the new agreement in 36 different jurisdictions.

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Netting, Financial Contracts, And Banks: The Economic Implications, William Bergman, Christian Johnson, Robert Bliss, George Kaufman Dec 2002

Netting, Financial Contracts, And Banks: The Economic Implications, William Bergman, Christian Johnson, Robert Bliss, George Kaufman

Christian A. Johnson

Derivatives and certain other off-balance sheet contracts enjoy special legal protection on insolvent counterparties through a process referred to as close-out netting. This paper explores the legal status and economic implications of this protection. While this protection benefits major derivatives dealers and derivatives markets, it is less clear that other market participants or markets in general are better or worse off. While we are not able to conclude whether or not these protections are socially optimal, we outline the wide range of issues that a general consideration of the pros and cons of netting protection should take into cognizance, and …

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Random Walks Down The Aisle And Class Participation, Christian Johnson, Linnie Wheeless Dec 2002

Random Walks Down The Aisle And Class Participation, Christian Johnson, Linnie Wheeless

Christian A. Johnson

After attending a mock class discussion at the AALS Workshop for New Teachers, I developed a strong dislike for randomly calling on students.

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Preview Of The 2002 Isda Master Agreement, Christian Johnson Aug 2002

Preview Of The 2002 Isda Master Agreement, Christian Johnson

Christian A. Johnson

The International Swaps and Derivatives Association is working on a revised version of the 1992 Master Agreement. Parties should carefully consider the proposed changes because these agreements have become the market standard for documenting over-the-counter derivatives. The 2002 ISDA Master Agreement is the result of several years of work by various ISDA documentation committees and reflects some of the best thinking in the area. The following column is based upon the July 2002 draft circulated by ISDA. There will only be one or two more drafts to be circulated prior to its anticipated publication in December. Although there will probably …

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Seven Deadly Sins Of Isda Negotiations, Christian Johnson Mar 2002

Seven Deadly Sins Of Isda Negotiations, Christian Johnson

Christian A. Johnson

ISDA master agreement negotiations are often never-ending, expensive and tedious. Negotiations can take months as parties battle over legal, business and credit terms. Although much has been done to standardize the documentation process, there are still numerous issues that parties must negotiate prior to executing the ISDA master agreement. In addition, parties often insist on making additional amendments to the ISDA master agreement that they believe are necessary to minimize legal and credit risks. Although negotiations can still deadlock over important terms, much can still be done to speed up negotiations. In particular, there are seven deadly sins that can …

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Financial Modernization After Gramm-Leach-Bliley Dec 2001

Financial Modernization After Gramm-Leach-Bliley

Patricia A. McCoy

No abstract provided.

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Holding Credit Hostage For Underwriting Ransom: Rethinking Bank Antitying Rules, Christian Johnson Dec 2001

Holding Credit Hostage For Underwriting Ransom: Rethinking Bank Antitying Rules, Christian Johnson

Christian A. Johnson

This article considers the importance of Congress's and the courts' consideration regarding the role antitying provisions have in light of the battle that exists between commercial banks and investment banks in the underwriting arena. Part I of this article discusses the history of commercial banks' powers to both lend and underwrite securities, focusing particularly on the enactment of the Glass-Steagall restrictions and their repeal by the Gramm-Leach-Bliley Act of 1999. Part I also focuses on the recent rise of commercial banks (or their affiliates) as securities underwriters. Part II examines the growing convergence of commercial banks and investment banks both …

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