Open Access. Powered by Scholars. Published by Universities.®
- Institution
Articles 1 - 14 of 14
Full-Text Articles in Law
Interest Rates, Venture Capital, And Financial Stability, Hilary J. Allen
Interest Rates, Venture Capital, And Financial Stability, Hilary J. Allen
Articles in Law Reviews & Other Academic Journals
Following several prominent bank failures and as central banks continue to tighten interest rates to fight inflation, there is increasing interest in the relationship between monetary policy and financial stability. This Article illuminates one path through which the prolonged period of low interest rates from 2009-2021 has impacted financial stability: it traces how yield-seeking behavior in the wake of the Global Financial Crisis and Covid pandemic led to a bubble in the venture capital industry, which in turn spawned a crypto bubble as well as a run on the VC-favored Silicon Valley Bank. This Article uses this narrative to illustrate …
Regulatory Managerialism Inaction: A Case Study Of Bank Regulation And Climate Change, Hilary J. Allen
Regulatory Managerialism Inaction: A Case Study Of Bank Regulation And Climate Change, Hilary J. Allen
Articles in Law Reviews & Other Academic Journals
In November of 2029, Hurricane Penelope struck New York City as a category two storm. Work had started on a wall to protect Manhattan from rising sea levels and storm surges, but the work was incomplete, and significant damage to Manhattan real estate was sustained. While almost all that real estate was insured, insurance companies were compromised by the sheer magnitude of the losses. Even with significant federal subsidies, they were unable to meet their full commitments on insurance policies. Some commercial real estate firms, who had never really recovered from the shift to remote working during the Covid pandemic, …
Defi: Shadow Banking 2.0?, Hilary J. Allen
Defi: Shadow Banking 2.0?, Hilary J. Allen
Articles in Law Reviews & Other Academic Journals
The growth of so-called “shadow banking” was a significant contributor to the financial crisis of 2008, which had huge social costs that we still grapple with today. Our financial regulatory system still hasn’t fully figured out how to address the risks of the derivatives, securitizations, and money market mutual funds that comprised Shadow Banking 1.0, but we’re already facing the prospect o fShadow Banking 2.0in the form of decentralized finance, or “DeFi.” DeFi’s proponents speak of a future where sending money is as easy as sending a photograph–but money is not the same as a photograph. The stakes are much …
Regulatory Innovation And Permission To Fail: The Case Of Suptech, Hilary J. Allen
Regulatory Innovation And Permission To Fail: The Case Of Suptech, Hilary J. Allen
Articles in Law Reviews & Other Academic Journals
The recent U.S. Supreme Court decision West Virginia v. EPA has cast a pall over the discretion of administrative agencies at a very inopportune time. The private sector is currently adopting new technologies at a rapid pace, and as regulated industries become more technologically complex, administrative agencies must innovate technological tools of their own in order to keep up. Agencies will increasingly struggle to do their jobs without that innovation, but the private sector is afforded something that is both critical to the innovation process, and often denied to administrative agencies: “permission to fail.” Without some grace for the inevitable …
The 'Merge' Did Not Fix Ethereum, Hilary J. Allen
The 'Merge' Did Not Fix Ethereum, Hilary J. Allen
Popular Media
The Ethereum blockchain that facilitates much of the crypto world last month finally accomplished the long-promised and oft-delayed “Merge”, a technical switch in the way it works.
Dynamic Resolution Of Large Financial Institutions, Thomas H. Jackson, David A. Skeel Jr.
Dynamic Resolution Of Large Financial Institutions, Thomas H. Jackson, David A. Skeel Jr.
All Faculty Scholarship
One of the more important issues emerging out of the 2008 financial crisis concerns the proper resolution of a systemically important financial institution. In response to this, Title II of Dodd-Frank created the Orderly Liquidation Authority, or OLA, which is designed to create a resolution framework for systemically important financial institutions that is based on the resolution authority that the FDIC has held over commercial bank failures. In this article, we consider the various alternatives for resolving systemically important institutions. Among these alternatives, we discuss OLA, a European-style bail-in process, and coerced mergers, while also extensively focusing on the bankruptcy …
Randomness And Complexity In Social Explanation: Evidence From Finance And Bankruptcy Law, Bernard Trujillo
Randomness And Complexity In Social Explanation: Evidence From Finance And Bankruptcy Law, Bernard Trujillo
Law Faculty Publications
No abstract provided.
How Law Affects Lending, Rainer F.H. Haselmann, Katharina Pistor, Vikrant Vig
How Law Affects Lending, Rainer F.H. Haselmann, Katharina Pistor, Vikrant Vig
Faculty Scholarship
The paper explores how legal change affects lending behavior of banks in twelve transition economies of Central and Eastern Europe. In contrast to previous studies, we use bank level rather than aggregate data, which allows us to control for country level heterogeneity and analyze the effect of legal change on different types of lenders. Using a differences-in-differences methodology to analyze the within country variation of changes in creditor rights protection, we find that the credit supplied by banks increases subsequent to legal change. Further, we show that collateral law matters more for credit market development than bankruptcy law. We also …
The Implied Waiver Solution To The Problem Of Privilege In The Individual Bankruptcy Case, Laura B. Bartell
The Implied Waiver Solution To The Problem Of Privilege In The Individual Bankruptcy Case, Laura B. Bartell
Law Faculty Research Publications
No abstract provided.
Why Warn? – The Worker Adjustment And Retraining Notification Act In Bankruptcy, Laura B. Bartell
Why Warn? – The Worker Adjustment And Retraining Notification Act In Bankruptcy, Laura B. Bartell
Law Faculty Research Publications
The Worker Adjustment and Retraining Notification ("WARN") Ace was enacted by Congress in 1988 to provide limited protections to workers whose jobs are suddenly and permanently terminated. The WARN Act generally precludes an "employer" from ordering a "plant closing or mass layoff" until the expiration of a sixty-day period after giving written notice of such proposed action. Pursuant to legislative directive, the Department of Labor ("Department") promulgated a final rule in 1989 interpreting the provisions of the statutory language. Although neither the WARN Act itself nor the final rule makes any reference to bankrupt employers, in the preamble to the …
The Lease Of Money In Bankruptcy: Time For Consistency?, Laura B. Bartell
The Lease Of Money In Bankruptcy: Time For Consistency?, Laura B. Bartell
Law Faculty Research Publications
No abstract provided.
Getting To Waiver – A Legislative Solution To State Sovereign Immunity In Bankruptcy After Seminole Tribe, Laura B. Bartell
Getting To Waiver – A Legislative Solution To State Sovereign Immunity In Bankruptcy After Seminole Tribe, Laura B. Bartell
Law Faculty Research Publications
No abstract provided.
Reinvigorating Chapter 11: The Case For Reinstating The Stock-For-Debt Exception In Bankruptcy, Michelle A. Cecil
Reinvigorating Chapter 11: The Case For Reinstating The Stock-For-Debt Exception In Bankruptcy, Michelle A. Cecil
Faculty Publications
This Article suggests that such a proposal will harmonize the bankruptcy policy of rehabilitating financially distressed corporations with the tax policy of ensuring that true economic income is subject to federal income taxation.27 Parts II and III of this Article will trace the common law evolution of the stock-for-debt exception and its statutory codification in 1980, with particular emphasis on the stated policy justifications for the exception. Part IV will then examine the history of the repeal of the stock-for-debt exception, demonstrating that the repeal was the result of hasty political maneuvering rather than reasoned legislative decision-making. In Part V, …
Running The Asylum: Governance Problems In Bankruptcy Reorganizations, Christopher W. Frost
Running The Asylum: Governance Problems In Bankruptcy Reorganizations, Christopher W. Frost
Law Faculty Scholarly Articles
Like much of life, the study of bankruptcy is the study of leverage. Chapter 11 of the United States Bankruptcy Code may be appropriately described as providing a framework within which interested parties may negotiate solutions to the problems facing a troubled company. The allocation of leverage to the negotiating parties is critical to the ultimate outcome of the process. In any negotiation setting control over the bargaining process is a key item of leverage. This Article proposes a framework for analysis and suggests solutions to the problem of control over corporations during the pendency of a Chapter 11 reorganization …