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Full-Text Articles in Law
Corporate Risk-Taking And Public Duty, Steven L. Schwarcz
Corporate Risk-Taking And Public Duty, Steven L. Schwarcz
Faculty Scholarship
No abstract provided.
Keynote Reflections: The Public Governance Duty, Steven L. Schwarcz
Keynote Reflections: The Public Governance Duty, Steven L. Schwarcz
Faculty Scholarship
Firms must take ever greater risks to try to innovate and create value in our increasingly competitive and complex global economy. Corporate governance law generally delegates control over excessive risk-taking to the firm’s investors, principally its risk-seeking shareholders. But this does not cover the type of risk-taking that led to the global financial crisis and that is becoming ever more common - risk-taking that could have systemic consequences to the financial system. I argue for a “public governance duty,” requiring managers of systemically important firms to assess the impact of risk-taking on the public as well as on investors, and …
A Model-Law Approach To Restructuring Unsustainable Sovereign Debt, Steven L. Schwarcz
A Model-Law Approach To Restructuring Unsustainable Sovereign Debt, Steven L. Schwarcz
Faculty Scholarship
Unresolved sovereign debt problems are hurting debtor nations, their citizens and their creditors, and also can pose serious systemic threats to the international financial system. The existing contractual restructuring approach is insufficient to make sovereign debt sustainable. Although a more systematic legal resolution framework is needed, a formal multilateral approach, such as a treaty, is not currently politically viable. An informal model-law approach should be legally, politically and economically feasible. This informal approach would not require multilateral acceptance. Because most sovereign debt contracts are governed by either New York or English law, it would be sufficient if one or both …
Excessive Corporate Risk-Taking And The Decline Of Personal Blame, Steven L. Schwarcz
Excessive Corporate Risk-Taking And The Decline Of Personal Blame, Steven L. Schwarcz
Faculty Scholarship
Government agencies and prosecutors are being criticized for seeking so few indictments against individuals in the wake of the 2008-09 financial crisis and its resulting banking failures. This article analyzes why — contrary to a longstanding historical trend — personal liability may be on the decline, and whether agencies and prosecutors should be doing more. The analysis confronts fundamental policy questions concerning changing corporate and social norms. The public and the media perceive the crisis’s harm as a “wrong” caused by excessive risk-taking. But that view can be too simplistic, ignoring the reality that firms must take greater risks to …
Corporate Risk-Taking And The Decline Of Personal Blame, Steven L. Schwarcz
Corporate Risk-Taking And The Decline Of Personal Blame, Steven L. Schwarcz
Faculty Scholarship
No abstract provided.