Digital Commons Network^™

Indenture Trustee Duties: The Pre-Default Puzzle, Steven L. Schwarcz

Faculty Scholarship

This Article addresses a topic at the intersection of finance, agency, contract, and trust law: the pre-default duties of an indenture trustee for bondholders. The existing scholarship on indenture trustee duties focuses on the post-default scenario, when the indenture trustee is required to act as a prudent person in like circumstances on behalf of the bondholders. No prior scholarship addresses an indenture trustee’s predefault duties. It is critical to try to define those duties because activist investors in the $42-trillion-plus bond market increasingly are making pre-default demands on indenture trustees, requiring them to know how to respond.

Whistleblowing In The Compliance Era, Jeffrey R. Boles, Leora Eisenstadt, Jennifer M. Pacella

Georgia Law Review

International events over the last year have propelled the
importance of whistleblowers to the forefront. It is increasingly
evident that whistleblowers provide immense value to society.
Yet, for years, whistleblowers have been victims of retaliation,
commonly experiencing threats, discrimination, and
employment termination due to their reporting. Against the
backdrop of a society heavily defined by compliance-focused
initiatives—where organizations and industries construct
robust compliance programs, internal policies, and codes of
conduct—this Article highlights a significant gap in legal
protections for would-be whistleblowers. While compliance
initiatives demonstrate that active self-regulation is
increasingly a staple of organizational governance, this Article
pinpoints the problems …

Class Action Squared: Multistate Actions And Agency Dilemmas, Elysa Dishman

Faculty Scholarship

As the Supreme Court continues to restrict the reach of private class actions, numerous commentators have championed public enforcement actions by state attorneys general (AGs) as a superior alternative to hold corporations accountable for misconduct. While AG actions fill some of the void left by the forced retreat of the private class action, few scholars have seriously considered whether the agency problems that exist in private class actions also occur in AG actions. And, until now, no scholar has recognized the unique agency problems that arise when AGs act together in multistate actions.

Multistate actions are made up of two …

In Defense Of Brandenburg: The Aclu And Incitement Doctrine In 1919, 1969, And 2019, Emerson J. Sykes

Brooklyn Law Review

In the United States, full-throated advocacy—even advocacy of violence—is protected by the First Amendment of the Constitution. Few other countries define “incitement to violence” as narrowly, and governments tend to exploit any authority to regulate speech. The ACLU has played a central role in developing America’s speech-protective modern incitement doctrine over the last century, sometimes by representing clients with abhorrent views, including in the landmark Brandenburg v. Ohio. The Brandenburg test sets a high bar for incitement that should be maintained, even with respect to online speech. Calls for increased regulation of speech should not be heeded.

The Audiences Of Statutes, David S. Louk

Cornell Law Review

Although a maxim of statutory drafting is to identify the relevant audience and draft so that the audience can "get the message," conventional theories of statutory interpretation often overlook important considerations about how statutes communicate and delegate to a diverse range of intended audiences. Statutes exist to change the conduct and behavior of many kinds of intended audiences, including administrative agencies, state and local governments, law enforcement officers, corporations, interest groups, lawyers, and laypeople. Influenced by lessons from the philosophies of law and language, this Article contends that Judicial statutory interpretation serves an important yet underappreciated role in providing a …

Civil Penalties Against Public Companies In Sec Enforcement Actions: An Empirical Analysis, David Rosenfeld

College of Law Faculty Publications

Civil penalties have become an increasingly important part of the Securities and Exchange Commission’s (SEC) enforcement program. The SEC now routinely obtains large civil penalties in enforcement actions, regularly trumpets those penalties in press releases, and highlights the penalty amounts in its end-of-the-year statistics. Civil penalties are defended on the ground they are necessary to make unlawful conduct costly and painful, and thereby deter misconduct and promote adherence to lawful and ethical standards of behavior. But with respect to one category of cases, civil penalties have always been controversial: when civil penalties are assessed against public companies, the cost of …

Dazed And Confused: Revamping The Sec’S Unpredictable Calculation Of Civil Penalties In The Technological Era, Samuel N. Liebmann

Duke Law Journal

Twenty-first-century problems cannot be solved with twentieth-century solutions. This applies with particular force to securities regulation, in which regulators must constantly adapt to rapid financial innovation. In an era of high-frequency trading and unprecedented market connectivity, the SEC has struggled to apply its existing regulatory framework. Specifically, the Commission’s tiered civil-penalty regime—a remnant of the 1990 Penny Stock Reform Act—is outdated and presents a number of challenges as applied to sophisticated trading violations. Primarily, the current structure, which allows Administrative Law Judges to punish financial misconduct for each illegal “act or omission” that has occurred, permits excessive discretion to impose …

Addressing The Auditor Independence Puzzle: Regulatory Models And Proposal For Reform, Aurelio Gurrea-Martinez, Martin Gelter

Research Collection Yong Pung How School Of Law

Auditors play a major role in corporate governance and capital markets. They facilitate firms’ access to financing by creating trust among public investors with efforts to prevent misbehavior and financial fraud by corporate insiders. In order to fulfill these goals, however, in addition to having the adequate knowledge and expertise, auditors should perform their functions in an independent manner. Unfortunately, auditors are subject to conflicts of interest by, for example, providing non-audit services or the mere fact of being hired and paid by the audited company. Therefore, even if auditors act independently, investors have reason to think otherwise. This lack …

The Case For Individual Audit Partner Accountability, Colleen Honigsberg

Vanderbilt Law Review

Despite repeated regulatory interventions, accounting failures continue to persist in companies around the world. In this Article, I explain why regulatory oversight, private enforcement, and firm-level reputational sanctions are unlikely to induce accountants to take optimal levels of care when auditing corporate financials. Instead, our best chance for improving audit quality lies in establishing a market for individual audit partners’ brands—a market that can hold individual auditors responsible for their mistakes.

The Article begins by identifying four key benefits to this approach. First, forcing auditors to be publicly associated with any audit failures occurring on their watch will induce them …

Protection Of Privacy And Banking Secrecy In Swiss Banking, Bashkim Nuredini, Vesna Paunkoska Dodevska

UBT International Conference

Despite being one of the most developed and regulated countries in the world, Switzerland is also considered to be the leading financial center in the world. Everyone agrees with the fact that banking is one of the most recognizable activities in Switzerland, and also places it among the most important international financial centers with a long tradition, stretching back to medieval times.

Swiss banking is a synonym for a banking system in which the principle of secrecy in banking is widely used. Banking secrecy as an established practice is based on the fact that customer data is kept secret for …

Annual Report Of The Indiana Universiy Maurer School Of Law Digital Repository, 2018/19, Richard Vaughan

Digital Repository Annual Reports

A brief annual report documenting the use and growth of the Indiana University Maurer School of Law, Jerome Hall Law Library, Digital Repository. Includes lists of the most downloaded documents and attached Excel spreadsheets of data.

Picking And Choosing Text: Lessons For Statutory Interpretation From The Philosophy Of Language, Victoria Nourse

Florida Law Review

Textualists claim that they follow statutory text. This Article argues that, in practice, textualists often create meaning rather than find it. Deploying the analytics of linguistic philosophy, this Article takes a deep dive into textualist methodology. The philosophy of language reveals what legal scholarship has left submerged: The very choice of text can put the thumb on the scales of any interpretation. When one pulls a term out of a statute and isolates it from the rest of the text (what I call “isolationist” method), this decontextualization offers the opportunity for adding and subtracting meaning from the statute by “pragmatic …

Fordham Lawyer, No. 17 - Fall 2019, Fordham Law Alumni Association, Fordham Law School

Fordham Lawyer

Fordham Lawyer magazine was first published in 1988 and continued through 2004. It returned in 2011 under Dean Michael M. Martin. The magazine shines a spotlight on faculty research, the Law School community, and the accomplishments of our alumni. No issues were published between 2004 and 2011.

Bleeding Out: The Case For Strengthening Healthcare Client Portal Data Privacy Regulations, Matthew D. Mccord

Minnesota Journal of Law, Science & Technology

No abstract provided.

Nonprofit Governance: The Basics, Lawrence J. Trautman, Janet Ford

Akron Law Review

Nonprofit organizations are prevalent in today’s economy, and many are governed by individuals who have been chosen on the basis of their advocacy of or contributions to various nonprofit causes rather than on the basis of business experience or acumen. Yet effective nonprofit governance, while presenting concerns unique to nonprofits, also presents many of the same concerns as does governance of for-profit entities. This article seeks to provide a primer for nonprofit organizations that need to recruit effective governance talent. First, we discuss the nature of nonprofits, their impact on the business landscape, and their similarities to and differences from …

Incumbency Or Innovation: Why A Collective Agency View Of Cross-Border Payments Means Private Blockchains Cannot Prevail, Boaz B. Goldwater

Cornell International Law Journal

The abstract below was generated using an artificial intelligence tool. It has not been endorsed by the author.   This Note examines the global cross-border payments system through the lens of collective action theory, arguing that the Society for Worldwide Interbank Financial Telecommunication (SWIFT) functions not merely as a financial messaging network but as a collective agent essential to the stability and legitimacy of international finance. While technological innovations—particularly blockchain-based platforms such as Ripple—promise improvements in speed, cost, and efficiency, the author contends that these advantages alone are insufficient to supplant SWIFT. The cross-border payments system requires not only technical functionality …

Df 2.0: An Automated, Privacy Preserving, And Efficient Digital Forensic Framework That Leverages Machine Learning For Evidence Prediction And Privacy Evaluation, Robin Verma, Jayaprakash Govindaraj Dr, Saheb Chhabra, Gaurav Gupta

Journal of Digital Forensics, Security and Law

The current state of digital forensic investigation is continuously challenged by the rapid technological changes, the increase in the use of digital devices (both the heterogeneity and the count), and the sheer volume of data that these devices could contain. Although data privacy protection is not a performance measure, however, preventing privacy violations during the digital forensic investigation, is also a big challenge. With a perception that the completeness of investigation and the data privacy preservation are incompatible with each other, the researchers have provided solutions to address the above-stated challenges that either focus on the effectiveness of the investigation …

Assuring Financial Stability For Survivors Of Domestic Violence: A Judicial Remedy For Coerced Debt In New York’S Family Courts, Megan E. Adams

Brooklyn Law Review

Domestic violence is a national crisis impacting more than one in three women and one in four men. Abuse is often experienced in nonviolent forms, including emotional, verbal and economic abuse. This note focuses on the harms of economic abuse and, specifically, coerced debt. As society’s understanding of the nuances of domestic violence deepens, many states, including New York, have recognized economic abuse as a unique harm and have empowered family courts to adjudicate such abuse. While promising, many states have yet to devise a suitable remedy for such harm. This critical gap leaves far too many survivors of abuse …

Sarbanes-Oxley And Ceo Accountability: Looking For A Corporate Scapegoat In S.E.C. V. Jensen, Jacqueline Dakin

Villanova Law Review (1956 - )

No abstract provided.

Criminal Prosecutions And The 2008 Financial Crisis In The U.S. And Iceland: What Can A Small Town Icelandic Police Chief Teach The U.S. About Prosecuting Wall Street?, Justin Rex

Concordia Law Review

Politicians, journalists, and academics alike highlight the paucity of criminal prosecutions for senior financial executives in the US in the wake of the 2008 financial crisis. One common argument for the lack of prosecutions is that, though industry players behaved recklessly, they did not behave criminally. I evaluate this claim by detailing the civil, and small number of criminal, actions actually taken and by reviewing leading arguments about whether behavior before the crisis was criminal. Rejecting the “reckless innocence” explanation, I provide examples of criminal behavior that could have been prosecuted and review the literature on why there were few …

Unintentional Irony In Landmark Decisions Of The Delaware Supreme Court Regarding Corporate Law, Steven J. Cleveland

Michigan Business & Entrepreneurial Law Review

Three landmark decisions of the Delaware Supreme Court exhibit unintentional irony: Beam v. Stewart, Smith v. Van Gorkom, and Paramount Communications Inc. v. Time Inc. In Beam, the court concluded that, regarding the decision of whether to seek remedy against Martha Stewart, her fellow directors would not have jeopardized their reputations for the minimal gain of continuing their business and personal relationships with her. Ironically, the court failed to acknowledge that Martha Stewart—in trading on material nonpublic information, which gave rise to the corporate claim against her—jeopardized her reputation (ultimately losing hundreds of millions of dollars and her freedom) for …

Professionals, Politicos, And Crony Attorneys General: A Historical Sketch Of The U.S. Attorney General As A Case For Structural Independence, Jed Handelsman Shugerman

Fordham Law Review

Historically, the office of the U.S. Attorney General has been identified as “quasi-judicial” or having “quasi-judicial” aspects. Other parts of the Department of Justice (DOJ) have also been described as quasi-judicial, such as the Office of Legal Counsel and the Solicitor General. A glance at a list of past attorneys general seems to confirm this judicial aspiration in practice. Nine attorneys general became U.S. Supreme Court justices, and others were notably judicious and professional in their tenure in the office. Of course, there are some infamous examples of unprofessional cronyism—the appointment of friends or associates to positions of authority, without …

Perspectives On Community Policing Of Durban Juveniles Living On The Streets, Dena Cheng

Independent Study Project (ISP) Collection

The aim of this project is to critically analyze the structure and performance of the South African Police Service (SAPS) at the nexus of juvenile criminal justice and homelessness. Facing issues of social discord, legitimacy, and patterns of corruption following the era of apartheid, SAPS plays a critical role in both preventing as well as eliminating crime. Therefore, this project focuses on a particularly marginalized community, under-aged street children, since the treatment of youth crime and/or criminality in Durban serves as a microcosm of a larger system of practices implemented by SAPS. Through in-depth interviews with local social workers, a …

Respect The Hustle: Necessity Entrepreneurship, Returning Citizens, And Social Enterprise Strategies, Priya Baskaran

Maryland Law Review

This Article will address a pervasive and growing problem for returning citizens—high rates of economic insecurity—and, as a novel solution, propose the creation of Economic Justice Incubators (“EJIs”) as a new, municipally-led social enterprise strategy. Mass incarceration is a national problem and requires comprehensive criminal justice reform. In contrast, the reentry process is locally focused due to a complex web of collateral consequences arising from state and local laws. An estimated 641,000 people return home from prison each year, many to economically distressed communities. Once released, the terms of their parole and the collateral consequences associated with their conviction restrict …

Professionals, Politicos, And Crony Attorneys General: A Historical Sketch Of The U.S. Attorney General As A Case For Structural Independence, Jed Handelsman Shugerman

Faculty Scholarship

We assume that the nineteenth century was an era of patronage, and the twentieth century marked the rise of professionalization. But the Office of the Attorney General reveals an opposite pattern — a troubling rise of cronyism in the DOJ from the early twentieth century.

This Article uses the rough categories of “professional,” “politico,” and “insider” or “crony,” based on each attorney general's background and how he or she rose to the office (rather than based upon their performance in the office.) Most AGs in the nineteenth century were "politicos" (major established political figures) or "professionals" (experienced lawyers relatively separate …

Regulating Offshore Finance, William J. Moon

Faculty Scholarship

From the Panama Papers to the Paradise Papers, massive document leaks in recent years have exposed trillions of dollars hidden in small offshore jurisdictions. Attracting foreign capital with low tax rates and environments of secrecy, a growing number of offshore jurisdictions have emerged as major financial havens hosting thousands of hedge funds, trusts, banks, and insurance companies.

While the prevailing account has examined offshore financial havens as “tax havens” that facilitate the evasion or avoidance of domestic tax, this Article uncovers how offshore jurisdictions enable corporations to evade domestic regulatory law. Specifically, recent U.S. Supreme Court cases restricting the geographic …

Justice Kavanaugh, Lorenzo V. Sec, And The Post-Kennedy Supreme Court, Matthew C. Turk, Karen E. Woody

Scholarly Articles

This Article analyzes a recent Supreme Court case, Lorenzo v. Securities and Exchange Commission, and explains why it provides a valuable window into the Court's future now that Justice Kennedy has retired and his seat filled by Justice Brett Kavanaugh. Lorenzo is an important case that raises fundamental interpretative questions about the reach of federal securities statutes. But most significant is its unique procedural posture: when the Supreme Court issues its decision on Lorenzo in 2019, Justice Kavanaugh will be recused while the other eight Justices rule on a lower court opinion from the D.C. Circuit in which he wrote …

Unravelling China's Gradual Approach To Equity Crowdfunding Regulation, Chen Li, Yu Qianqian

American University Business Law Review

No abstract provided.

Making Corporations More Human Through Artificial Intelligence, Michael R. Siebecker

Sturm College of Law: Faculty Scholarship

Can existing corporate fiduciary principles adequately guide officers and directors regarding the proper development and utilization of artificial intelligence ("AI") technologies? What role should AI play in corporate boardrooms? These questions seem especially pressing considering the increasing prevalence of AI throughout a variety of industries in a host of key functions. It should come as little surprise, however, that with the advent of a powerful new technology, important concerns arise regarding the limits on its use and the ends to which it should be directed. Ethicists warn about AI 's lack of moral sensitivity, empathy, and appreciation for human rights. …

Private Covenants, Public Laws, And The Financial Future Of Condominiums, 52 Uic J. Marshall L. Rev 715 (2019), Evan Mckenzie

UIC Law Review

No abstract provided.