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2014

Banking and Finance Law

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Articles 1 - 30 of 112

Full-Text Articles in Law

The Duty To Manage Risk, A. Christine Hurt Dec 2014

The Duty To Manage Risk, A. Christine Hurt

Faculty Scholarship

No abstract provided.


“Single Point Of Entry”: The Promise And Limits Of The Latest Cure For Bailouts, John Crawford Nov 2014

“Single Point Of Entry”: The Promise And Limits Of The Latest Cure For Bailouts, John Crawford

NULR Online

No abstract provided.


The Shrews That Tame Wall Street?, Mehrsa Baradaran Nov 2014

The Shrews That Tame Wall Street?, Mehrsa Baradaran

Popular Media

Although plenty of men are whistleblowers and financial reformers, too, the ones making the most noise are women. Women are significantly underrepresented in Wall Street firms as well as in Congress and the regulatory agencies.


Summary Of State, Dept. Of Bus. And Industry V. Check City P’Ship, 130 Nev. Adv. Op. 90, Daven Cameron Nov 2014

Summary Of State, Dept. Of Bus. And Industry V. Check City P’Ship, 130 Nev. Adv. Op. 90, Daven Cameron

Nevada Supreme Court Summaries

The Court interpreted NRS 605A.425 and concluded that the statute unambiguously provides that a borrower’s deferred deposit loan is to be capped at 25 percent of the borrower’s expected gross monthly income. This cap includes both principal and any interest or fees charged.


The Plight Of Modern Markets: How Universal Banking Undermines Capital Markets, Carolyn Sissoko Nov 2014

The Plight Of Modern Markets: How Universal Banking Undermines Capital Markets, Carolyn Sissoko

University of Southern California Legal Studies Working Paper Series

This paper explains the process of competitive deregulation that led both the U.S. and the U.K. to embrace universal banking and to abandon the functional separation of financial activities that had long characterized their financial systems. The paper argues that only a few rare voices in the debate over universal banking that started in the late-1970s and continued for over a decade understood what was truly at stake. The principal argument in favor of separation, then as now, was that the commercial banking system, which is supported by a government “safety net,” needs to be protected from the ...


Advising Venture & Early-Stage Client: Issues Confronting Early-Stage Companies, Carroll D. Hurst Nov 2014

Advising Venture & Early-Stage Client: Issues Confronting Early-Stage Companies, Carroll D. Hurst

William & Mary Annual Tax Conference

No abstract provided.


Business Law Bulletin, Fall 2014 Oct 2014

Business Law Bulletin, Fall 2014

Business Law Bulletin

No abstract provided.


Regulation By Hypothetical, Mehrsa Baradaran Oct 2014

Regulation By Hypothetical, Mehrsa Baradaran

Scholarly Works

A new paradigm is afoot in banking regulation—and it involves a turn toward the more speculative. Previous regulatory instruments have included geographic restrictions, activity restrictions, disclosure mandates, capital requirements, and risk management oversight to ensure the safety of the banking system. This Article describes and contextualizes these regulatory tools and shows how and why they were formed to deal with industry change. The financial crisis of 2008 exposed the shortcomings in each of these regimes. In important ways, the Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”) departs from these past regimes and proposes something new: Call ...


Who Should Be Providing Mortgage Credit To American Households?, David J. Reiss Oct 2014

Who Should Be Providing Mortgage Credit To American Households?, David J. Reiss

Faculty Scholarship

No abstract provided.


"Competitiveness" Has Nothing To Do With It, Edward D. Kleinbard Sep 2014

"Competitiveness" Has Nothing To Do With It, Edward D. Kleinbard

University of Southern California Legal Studies Working Paper Series

The recent wave of corporate tax inversions has triggered interest in what motivates these tax-driven transactions now. Corporate executives have argued that inversions are explained by an “anti-competitive” U.S. tax environment, as evidenced by the federal corporate tax statutory rate, which is high by international standards, and by its “worldwide” tax base. This paper explains why this competitiveness narrative is largely fact-free, in part by using one recent articulation of that narrative (by Emerson Electric Co.’s former vice-chairman) as a case study.

The recent surge in interest in inversion transactions is explained primarily by U.S. based multinational ...


A Short History Of Postal Banking, Mehrsa Baradaran Aug 2014

A Short History Of Postal Banking, Mehrsa Baradaran

Popular Media

Every other developed country in the world has postal banking, and we actually did too. It is important to remember this forgotten history as we begin to talk seriously about reviving postal banking because the system worked and it worked well. Postal banking, which existed in the United States from 1911 to 1966, was in fact so central to our banking system that it was almost the alternative to federal deposit insurance, and served as such from 1911 until 1933. The system prevented many bank runs during a turbulent time in the nation’s banking history—essentially performing central banking ...


Unfit For Duty: The Officer And Director Bar As A Remedy For Fraud, Renee M. Jones Aug 2014

Unfit For Duty: The Officer And Director Bar As A Remedy For Fraud, Renee M. Jones

Boston College Law School Faculty Papers

Many commentators have questioned the efficacy of the SEC’s enforcement program in the aftermath of the 2008 financial crisis. Some criticize the agency for allowing corporate defendants to settle charges without admitting or denying liability. Others dispute the impact of astronomical fines levied against too-big-to-fail financial institutions. Still others urge prosecutors to bring criminal charges against those who led the failed financial firms to ruin. This Article, written for a symposium on SEC enforcement, focuses attention on an underutilized weapon in the SEC’s arsenal: the power to bar officers and directors of public companies from future service in ...


Revenue, U.S. Government, Bert Chapman Jul 2014

Revenue, U.S. Government, Bert Chapman

Libraries Faculty and Staff Scholarship and Research

Provides a historical overview of U.S. Government revenue receipts and spending during the early years of national history. Presents revenue generation statistics, information on revenue sources, and information on domestic and international political and economic factors affecting government revenue receipts.


New York Stock Exchange, Bert Chapman Jul 2014

New York Stock Exchange, Bert Chapman

Libraries Faculty and Staff Scholarship and Research

Provides a historical overview of the origins and early development of the New York Stock Exchange.


Legitimacy And Impartiality In A Sovereign Debt Workout Mechanism, Odette Lienau Jul 2014

Legitimacy And Impartiality In A Sovereign Debt Workout Mechanism, Odette Lienau

Cornell Law Faculty Publications

Particularly in light of recent developments in sovereign debt litigation, there is a pressing need for discussion of more robust sovereign debt restructuring mechanisms. This paper contends that any sovereign debt workout mechanism (DWM) should embody the principles of legitimacy and impartiality, to the extent possible, in order to garner the stable and long-term adherence of international stakeholders. These two elements are important both for attracting support ex ante, i.e. in the initial development of any treaty, ad hoc, or soft law restructuring mechanism, and for ensuring ex post that a DWM is ultimately utilized by states and their ...


Russia’S Contract Arbitrage, Anna Gelpern Jun 2014

Russia’S Contract Arbitrage, Anna Gelpern

Georgetown Law Faculty Publications and Other Works

Ukraine is poised to restructure its debt, but Russia may hold the best cards in the negotiation. Russia bought $3 billion in Ukrainian Eurobonds in late 2013 to prop up a political ally, since-deposed. As Russian President Vladimir Putin himself has pointed out, these bonds have unique terms that let Russia call for early repayment, putting it ahead of Ukraine’s private creditors. Meanwhile, Russia and its proxies hold enough bonds to block a restructuring vote or hold out, sticking more losses on other creditors. Russia has refused to restructure the bonds in the Paris Club of government-to-government creditors, claiming ...


The New Human Equity Transactions, Shu-Yi Oei, Diane M. Ring Jun 2014

The New Human Equity Transactions, Shu-Yi Oei, Diane M. Ring

Boston College Law School Faculty Papers

This article begins to explore the legal and policy implications of a new form of financing -- income sharing agreements -- which have raised concerns that the effectively created "equity" in humans.


Summary Of Lavi V. Eighth Judicial District Court, 130 Nev. Adv. Op. 38, Danielle Barraza May 2014

Summary Of Lavi V. Eighth Judicial District Court, 130 Nev. Adv. Op. 38, Danielle Barraza

Nevada Supreme Court Summaries

The Court determined whether waiver of the “one-action rule” of NRS 40.430 terminates the procedural requirements for bringing a deficiency judgment action within six months of foreclosure under NRS 40.455.


Common Capital: A Thought Experiment In Cross-Border Resolution, Anna Gelpern May 2014

Common Capital: A Thought Experiment In Cross-Border Resolution, Anna Gelpern

Georgetown Law Faculty Publications and Other Works

Cross-border bank resolution efforts focus on burden-sharing between bank owners, private creditors and the public. There is little talk of burden-sharing among governments, despite the rich history of governments trying to stick one another with the cost of financial conglomerate failures. There is an unspoken fear that acknowledging the need to allocate losses among governments would undermine post-crisis pledges of No More Bailouts. This symposium essay argues for making government stakes in private financial firms more transparent, and for using the contingent public share as a key to loss allocation among governments in cross-border banking crises.


Real Estate Investment By Bank Holding Companies And Their Risk And Return: Nonparametric And Garch Procedures, Scott Deacle, Elyas Elyasiani May 2014

Real Estate Investment By Bank Holding Companies And Their Risk And Return: Nonparametric And Garch Procedures, Scott Deacle, Elyas Elyasiani

Business and Economics Faculty Publications

We investigate the association between real estate investment by US Bank Holding Companies (BHCs) and their return, risk and risk-adjusted returns. Three portfolios are formed of BHCs according to whether they do or do not invest in real estate, strictness of the regulation on real estate investment and the ratio of real estate investment to assets. Wilcoxon tests of differences in portfolio returns, risk, risk-adjusted returns and value at risk between each pair of portfolios are conducted to determine how engagement in real estate, stricter regulation and increased real estate investment affect BHC performance. These effects are also investigated within ...


Shadow Banking: Why Modern Money Markets Are Less Table Than 19th C. Money Markets But Shouldn't Be Stabilized By A "Dealer Of Last Resort", Carolyn Sissoko Apr 2014

Shadow Banking: Why Modern Money Markets Are Less Table Than 19th C. Money Markets But Shouldn't Be Stabilized By A "Dealer Of Last Resort", Carolyn Sissoko

University of Southern California Legal Studies Working Paper Series

An important policy question that is currently being discussed by central bankers and academics is whether the “shadow” banking system should have a permanent backstop from the central bank akin to the extraordinary support that was provided by the Federal Reserve to the shadow banking system in 2008. I answer this question by (i) using a macroeconomic analysis of banking (ii) to explain the role played by the first lender of last resort in 19th c. Britain and (iii) applying this analysis to the modern shadow banking system. I conclude that because of its heavy reliance on collateralization, the shadow ...


The Effect Of Forced Refocusing On The Value Of Diversified Firms, John G. Matsusaka, Yongxiang Wong Apr 2014

The Effect Of Forced Refocusing On The Value Of Diversified Firms, John G. Matsusaka, Yongxiang Wong

University of Southern California Legal Studies Working Paper Series

This paper studies how investors responded when Chinese regulators required a group of large, publicly traded companies to divest their non-core hotel and real estate assets in 2010. The quasi-experiment allows direct estimates of the effect of diversification on value that are free from common selection problems in the literature. On average, stock prices rose 1 to 2 percent in response to forced refocusing, suggesting that corporate diversification was a value-destroying strategy for those firms. The implied “excess value/diversification discount” has at best a weak connection to the announcement return. The abnormal return was most positive for companies in ...


The Motivating Force Of A Bonus Pool, And Other Objections, Claire A. Hill Apr 2014

The Motivating Force Of A Bonus Pool, And Other Objections, Claire A. Hill

NULR Online

No abstract provided.


Debt-Buyer Lawsuits And Inaccurate Data, Peter A. Holland Apr 2014

Debt-Buyer Lawsuits And Inaccurate Data, Peter A. Holland

Faculty Scholarship

Pursuant to secret purchase and sale agreements (also known as forward flow agreements), the accounts that banks sell to debt buyers are often sold “as is,” with explicit and emphatic disclaimers that the debts may not be owed, the amounts claimed may not be accurate, and documentation may be missing. Despite their full knowledge that the accuracy and completeness of the data has been specifically disclaimed by the bank, when they sue consumers, debt buyers tell courts that the information obtained from the bank is inherently reliable and accurate. In order to avoid a fraud on the courts, the contents ...


Incentivizing Credit Rating Agencies Under The Issuer Pay Model Through A Mandatory Compensation Competition, Robert J. Rhee Apr 2014

Incentivizing Credit Rating Agencies Under The Issuer Pay Model Through A Mandatory Compensation Competition, Robert J. Rhee

Faculty Scholarship

Credit rating agencies are important institutions of the global capital markets. If they had performed properly, the financial crisis of 2008-2009 would not have occurred. This article offers the simplest fix proposed thus far, and it is contrarian. This Article accepts the central role of rating agencies in the regulation of bond investments, the realities of a duopoly, and the issuer-pay model of compensation. The status quo is the baseline. The role of regulation should be to create the conditions necessary to induce competition. This article proposes that a small, recurring portion of revenue earned by the largest rating agencies ...


Business Law Bulletin, Spring 2014 Apr 2014

Business Law Bulletin, Spring 2014

Business Law Bulletin

No abstract provided.


The Unemotional Corporation, Amy J. Sepinwall Mar 2014

The Unemotional Corporation, Amy J. Sepinwall

Legal Studies and Business Ethics Papers

Because corporations are not capable of experiencing emotions, we should stop thinking of them as persons.

Corporations are monsters – not in the sense that they are hell-bent on evil but in the sense that they lack certain capacities that are the hallmarks of our humanity. In particular, and like most supernatural creatures populating both mythology and the movieplex, corporations lack the ability to appreciate what it might feel like to be the victim of a wrong and, not unrelatedly, the ability to feel bad when they do wrong. To put it in our folk terminology, the corporation lacks a heart.


Brief Of Public Knowledge: Alice Corporation Pty. Ltd. V. Cls Bank International And Cls Services Ltd., Jack Lerner, Charles Duan Mar 2014

Brief Of Public Knowledge: Alice Corporation Pty. Ltd. V. Cls Bank International And Cls Services Ltd., Jack Lerner, Charles Duan

University of Southern California Legal Studies Working Paper Series

This is the Brief of Public Knowledge and the Application Developers Alliance as Amici Curiae in Support of Respondents.


An Overview Of The Fannie And Freddie Conservatorship Litigation, David J. Reiss Mar 2014

An Overview Of The Fannie And Freddie Conservatorship Litigation, David J. Reiss

Faculty Scholarship

No abstract provided.


Single Point Of Entry And The Bankruptcy Alternative, David A. Skeel Jr. Feb 2014

Single Point Of Entry And The Bankruptcy Alternative, David A. Skeel Jr.

Faculty Scholarship at Penn Law

This Essay, which will appear in Across the Great Divide: New Perspectives on the Financial Crisis, a Brookings Institution and Hoover Institution book, begins with a brief overview of concerns raised by the Lehman Brothers bankruptcy about the adequacy of our existing architecture for resolving the financial distress of systemically important financial institutions. The principal takeaway of the first section is that Title II as enacted left most of these issues unanswered. By contrast, the FDIC’s new single point of entry strategy, which is introduced in the second section, can be seen as addressing nearly all of them. The ...