Banking and Finance Law Commons^™

The Role Of Rival Litigation In Wilmarth's New Glass-Steagall, Heidi Mandanis Schooner

University of Colorado Law Review

No abstract provided.

Who's Looking Out For The Banks?, Jeremy C. Kress

University of Colorado Law Review

When the Gramm-Leach-Bliley Act authorized financial conglomeration in 1999, Professor Arthur Wilmarth, Jr. presciently predicted that diversified financial holding companies would try to exploit their bank subsidiaries by transferring government subsidies to their nonbank affiliates. To prevent financial conglomerates from taking advantage of their insured depository subsidiaries in this way, policymakers instructed a bank's board of directors to act in the best interests of the bank, rather than the bank's holding company. This symposium Article, written in honor of Professor Wilmarth's retirement, contends that this legal safeguard ignores a critical conflict of interest: the vast majority of large-bank directors also …

The Tailors Of Wall Street, Graham S. Steele

University of Colorado Law Review

The narrative that emerged in the aftermath of the COVID-19 financial crisis has focused on nonbank financial intermediation as the primary vulnerability that plagued financial markets starting in March of 2020 and the exogenous nature of a public health crisis as a unique precipitating event. As a result, the crisis has largely been viewed as vindication for financial regulation as it applies to banks, with the Federal Reserve playing the role of heroic rescuer of the financial system.

This Article offers an alternative-and critical-analysis of the performance of banks during the COVID-19 financial crisis and the Fed's role as a …

Rethinking Kirschner V. J.P. Morgan: How Securities And Banking Laws Should Apply To Syndicated Loans, Joel Crank

University of Colorado Law Review

No abstract provided.

Afterword: Why "Taming The Megabanks" Should Remain A Top Priority For Financial Regulators And Policymakers, Arthur E. Wilmarth Jr.

University of Colorado Law Review

No abstract provided.

Foreword: Arthur E. Wilmarth, Jr., A Scholar Of Uncommon Conviction, Integrity, And Boldness, Patricia A. Mccoy

University of Colorado Law Review

No abstract provided.

Hyperfunding: Regulating Financial Innovations, Seth C. Oranburg

University of Colorado Law Review

Innovations in corporate finance are driven by frustrations with present regulations and fueled by the internet and social media. Hyperfunding is one such example: Tesla paved the way for an electric vehicle revolution by preselling hundreds of thousands of its Model 3 EV direct to consumers. Unwary consumers may not have realized that they were underwriting Tesla's bold strategy to transform multiple product markets. Risks were not disclosed. Rewards proved illusory. Investors would have been entitled to disclosures and colorable claims of fraud when Tesla missed milestones and deadlines. But consumers can only get their $1000 deposit back, without interest, …

Things Fall Apart: Regulating The Credit Default Swap Commons, Kristen N. Johnson

University of Colorado Law Review

Financial markets are an important national and international infrastructure resource that reflect attributes similar to the those that characterize commons, as described in property law literature. Through a case study examining the credit default swap market, this Article illustrates the analogy between financial markets and a traditional commons. After exploring the attributes of a commons, this Article examines the costs and benefits of the credit default swap market. Similar to a traditional commons, tragedy in financial markets occurs when market participants capture benefits while imposing the costs or negative externalities from their activities on other members of society. Commons scholars' …

An Unfortunate "Tail": Reconsidering Risk Management Incentives After The Financial Crisis Of 2007-2009, Douglas O. Edwards

University of Colorado Law Review

In recent months, the legal academic community has taken a greater interest in the practice of risk management. Doubtless a response to the recent financial crisis, many have concluded that our current market structure allows for uninhibited risk taking and the pooling of systemic risk. Accordingly, most have suggested a regulatory response is necessary. This Comment, in unreserved agreement with these writers, attempts to contribute to this literature in two ways. First, this Comment explains the development of quantitative risk management to fill in the gaps in the existing legal research. Though I present nothing groundbreaking, my purpose is to …

The Law And Economics Of Subprime Lending, Todd J. Zywicki, Joseph D. Adamson

University of Colorado Law Review

The collapse of the subprime mortgage market has led to calls for greater regulation to protect homeowners from unwittingly trapping themselves in high-cost loans that lead to foreclosure, bankruptcy, or other financial problems. Weighed against the losses of the widespread foreclosure crisis are the benefits of financial modernization that have accrued to many American families who have been able to become homeowners who otherwise would not have access to mortgage credit. The bust of the subprime mortgage market has resulted in high levels of foreclosures and unparalleled problems on Wall Street. However, the boom generated unprecedented levels of homeownership, especially …

Ending Pay-To-Play In The Municipal Securities Business: Msrb Rule G-3 7 Ten Years Later, Kevin Opp

University of Colorado Law Review

No abstract provided.