Making Money: Leverage And Private Sector Money Creation,
2013
Seattle University School of Law
Making Money: Leverage And Private Sector Money Creation, Margaret M. Blair
Seattle University Law Review
Contrary to the beliefs of most macroeconomists, the financial sector in the United States has grown too large in the last few decades as a consequence of financial innovation that has encouraged the use of too much “leverage” (financing with debt) by financial institutions (as well as by consumers and other borrowers). In Part II, I connect the dots between excessive leverage, risk, and financial market volatility. In Part III, I explore the role that the “shadow-banking sector” has had in driving leverage. In Part IV, I explain why leverage at the level of financial institutions matters for the macroeconomy. …
The Governance And Disclosure Of The Firm As An Enterprise Entity,
2013
Seattle University School of Law
The Governance And Disclosure Of The Firm As An Enterprise Entity, Yuri Biondi
Seattle University Law Review
During recent decades, the rapid pace of financial markets involving new modes of management, governance, and regulation has framed business firms. This corporate drift toward financialization is summarized under the “shareholder value” label. What do financial markets do? Unequivocally, they organize trading on shares that are securities: tradable financial entitlements established by law, which formalize expectations, and claims of financial rents paid by the issuing company. Actually, how continued quotation on share exchanges came to be the barometer of economic or social welfare is a different matter. The latter adoption has required quite a great leap from “the euthanasia of …
Rationales And Designs To Implement An Institutional Big Bang In The Governance Of Global Finance,
2013
Seattle University School of Law
Rationales And Designs To Implement An Institutional Big Bang In The Governance Of Global Finance, Emilios Avgouleas
Seattle University Law Review
The colossal challenges facing international finance pertain to both its governance system and its dual utility and speculative functions, which have become ever more intertwined with the advent of financial innovation. In the aftermath of the Global Financial Crisis (GFC), a number of significant reforms are under way to address the second issue, including additional capital and liquidity requirements for banks, measures to battle interconnectedness in the financial sector, new resolution regimes that would allow banks to fail more easily, and stricter frameworks for bank supervision and monitoring of systemic risk. Yet limited progress has been made with respect to …
Framing Address: A Framework For Analyzing Financial Market Transformation,
2013
Seattle University School of Law
Framing Address: A Framework For Analyzing Financial Market Transformation, Steven L. Schwarcz
Seattle University Law Review
The title of this Symposium originally was “Rethinking Financial and Securities Markets.” It is, of course, somewhat presumptuous for scholars to try to rethink financial markets per se. Markets, including financial markets, are driven primarily by supply and demand. But scholars can and should try to influence the future of financial markets by rethinking their fundamental aspects. This Symposium presents work from leading scholars in the fields of law, economics, finance, and accounting. I will try to frame the discussion from the perspectives of these four disciplines. First, however, we need to identify what it is about financial markets that …
The Modern Corporation Magnified: Managerial Accountability In Financial Services Holding Companies,
2013
Chicago-Kent College of Law
The Modern Corporation Magnified: Managerial Accountability In Financial Services Holding Companies, Anita Krug
All Faculty Scholarship
This Article first recalls the primary contours of Adolf Berle and Gardiner Means’s acclaimed observations regarding the separation of ownership and control in the “modern corporation,” as well as their conclusions about the implications of those observations for the doctrine of shareholder primacy. Second, the Article describes how the activities of FSHCs generally differ from what we think corporations do and, certainly, from what Berle and Means conceived of as the purpose of corporations or, indeed, any business enterprise. Third, this Article articulates how those business activities render more acute the problem of the separation of ownership and control that …
Transaction Cost-Benefit Analysis, With Applications To Financial Regulation,
2013
Geroge Mason University School of Law
Transaction Cost-Benefit Analysis, With Applications To Financial Regulation, D. Bruce Johnsen
D. Bruce Johnsen
As Coase convincingly showed, transaction costs inhibit the ability of market participants to achieve first-best outcomes. This paper proposes a novel and relatively simple alternative to traditional cost-benefit analysis when regulated parties face sufficiently low transaction costs that they can bargain directly or rely on competitive markets to set efficient terms of trade. In these settings, the only informational burdens financial market regulators need bear to assess corrective rules is to identify the relevant parties, the “good” they hope to exchange, and the transaction costs that inhibit them from maximizing joint gains from trade. A rule is justified only if …
Conceptions Of Corporate Purpose In Post-Crisis Financial Firms,
2013
University of Georgia School of Law
Conceptions Of Corporate Purpose In Post-Crisis Financial Firms, Christopher M. Bruner
Scholarly Works
American "populism" has had a major impact on the development of U.S. corporate governance throughout its history. Specifically, appeals to the perceived interests of average working people have exerted enormous social and political influence over prevailing conceptions of corporate purpose - the aims toward which society expects corporate decision-making to be directed. This article assesses the impact of American populism upon prevailing conceptions of corporate purpose - contrasting its unique expression in the context of financial firms with that arising in other contexts - and then examines its impact upon corporategovernance reforms enacted in the wake of the financial and …
Revolution In Manipulation Law: The New Cftc Rules And The Urgent Need For Economic And Empirical Analyses,
2013
University of Michigan Law School
Revolution In Manipulation Law: The New Cftc Rules And The Urgent Need For Economic And Empirical Analyses, Rosa M. Abrantes-Metz, Gabriel V. Rauterberg, Andrew Verstein
Articles
Three major banks have now admitted that their employees manipulated worldwide interest rates through the London Interbank Offered Rate (Libor), the most widely used interest rate index. Libor is the interest rate term for trillions of dollars of swaps and loans, and its manipulation may have been used to extract billions of dollars. These allegations come just as commodities manipulation law has been dramatically reformed and the Commodity Futures Trading Commission (CFTC) given vast new regulatory powers. This Article provides the first extended, scholarly analysis of the CFTC’s new anti-manipulation rules. We consider the difficulty the rules address: Commodities manipulation …
A Specter Is Haunting The Financial Industry - The Specter Of The Global Financial Crisis: A Comment On The Imminent Expansion Of Consumer Financial Protection In The United States, The United Kingdom, And The European Union,
2013
Pepperdine University
A Specter Is Haunting The Financial Industry - The Specter Of The Global Financial Crisis: A Comment On The Imminent Expansion Of Consumer Financial Protection In The United States, The United Kingdom, And The European Union, Daniel Lamb
Journal of the National Association of Administrative Law Judiciary
This Comment explores the regulatory fallout from the global financial crisis. Across borders, policy makers are united in their conviction to reconcile the perceived failures of their predecessors to foresee and prevent the crisis, the effects of which show no signs of abating. A critical component of what caused the crisis was the inability to correct failures in the consumer credit market, specifically in subprime mortgages. Exacerbated by an influx of capital and a generally weak regulatory environment, this market failure manifested itself forcefully through a tidal wave of defaults in the American mortgage market that sent shock waves around …
Constitucionalidade Da Vedação Para Aquisição De Terras Rurais Por Estrangeiros,
2013
HSBC Brasil / HSBC Dubai
Constitucionalidade Da Vedação Para Aquisição De Terras Rurais Por Estrangeiros, Felipe Chagas Villasuso Lago
Felipe Chagas Villasuso Lago Mr.
No abstract provided.
Foreword,
2013
University of North Carolina School of Law
Foreword, Daniel K. Tracey, Lissa L. Broome
North Carolina Banking Institute
No abstract provided.
Domestic Bank Regulation In A Global Environment - A Comparative Dialogue,
2013
University of North Carolina School of Law
Domestic Bank Regulation In A Global Environment - A Comparative Dialogue, Lissa Broome, Michael Helfer, Cyrus Amir-Mokri, Chris Brummer
North Carolina Banking Institute
No abstract provided.
Only Fools Rush In: Mandatory Audit Firm Rotation And The Pcaob,
2013
University of North Carolina School of Law
Only Fools Rush In: Mandatory Audit Firm Rotation And The Pcaob, Sarah A. Core
North Carolina Banking Institute
No abstract provided.
After The Dodd-Frank Indusrial Loan Company Moratorium: What's Next,
2013
University of North Carolina School of Law
After The Dodd-Frank Indusrial Loan Company Moratorium: What's Next, V. Gerard Comizio
North Carolina Banking Institute
No abstract provided.
Early Stage Sbics: A New Source Of Capital For Private Investors, Equity For Start-Ups, And Possible Volcker Rule Exemption For Banks,
2013
University of North Carolina School of Law
Early Stage Sbics: A New Source Of Capital For Private Investors, Equity For Start-Ups, And Possible Volcker Rule Exemption For Banks, Ethan D. Dunn
North Carolina Banking Institute
No abstract provided.
Anti-Money Laundering Compliance: Only Mega Banks Need Apply,
2013
University of North Carolina School of Law
Anti-Money Laundering Compliance: Only Mega Banks Need Apply, Ernest L. Simons Iv
North Carolina Banking Institute
No abstract provided.
Increased Bank Liability For Online Fraud: The Effect Of Patco Construction Co. V. People's United Bank,
2013
University of North Carolina School of Law
Increased Bank Liability For Online Fraud: The Effect Of Patco Construction Co. V. People's United Bank, Robert K. Burrow
North Carolina Banking Institute
No abstract provided.
"The Price Of Inequality" And The 2005 Bankruptcy Abuse Prevention And Consumer Protection Act,
2013
University of North Carolina School of Law
"The Price Of Inequality" And The 2005 Bankruptcy Abuse Prevention And Consumer Protection Act, Brendan A. Cappiello
North Carolina Banking Institute
No abstract provided.
Domestic Bank Regulation In A Global Environment - A Comparative Dialogue,
2013
Cornell Law School
Domestic Bank Regulation In A Global Environment - A Comparative Dialogue, Robert C. Hockett
Cornell Law Faculty Publications
No abstract provided.
China's Foreign Invested Partnership Enterprise Law: The Lifeless Or Sleeping Dragon?,
2013
University of Washington School of Law
China's Foreign Invested Partnership Enterprise Law: The Lifeless Or Sleeping Dragon?, Samuel H. Shaddox
Washington International Law Journal
Investors and the Chinese government tout the March 2010 authorization of the Foreign Invested Partnership as an exciting new method for foreign investment in China. However, this comment argues that the Foreign Invested Partnership is not likely to become a vibrant short or long-term platform for foreign direct investment. The historical trends of China’s three other vehicles for foreign direct investment from 1979 to the present provide two key conclusions. First, foreign investors will not utilize Foreign Invested Partnerships until they receive detailed implementing regulations from China’s central government. Second, support or restrictions from the Chinese government can drive or …
