Digital Commons Network^™

Regulating Systemic Risk: Towards An Analytical Framework, Steven L. Schwarcz, Iman Anabtawi

Faculty Scholarship

The global financial crisis demonstrated the inability and unwillingness of financial market participants to safeguard the stability of the financial system. It also highlighted the enormous direct and indirect costs of addressing systemic crises after they have occurred, as opposed to attempting to prevent them from arising. Governments and international organizations are responding with measures intended to make the financial system more resilient to economic shocks, many of which will be implemented by regulatory bodies over time. These measures suffer, however, from the lack of a theoretical account of how systemic risk propagates within the financial system and why regulatory …

Cybertrash, Max Stul Oppenheimer

All Faculty Scholarship

Information stored in a physical object receives the same Fourth

Amendment protection as the physical object in which it is stored.

As information moves online, it becomes independent of physical

objects, and therefore traditional rules must be reexamined. Others

have argued persuasively/ and courts appear receptive to the

argument, that online communications and data should receive the

same protection as their analogs embodied in the physical world.

Even assuming that this conclusion will be universally accepted, a

troubling consequence remains: the clear weight of authority holds

that Fourth Amendment protection does not apply to information

embodied in discarded physical trash. …

Conflict Of Norms Or Conflict Of Laws?: Different Techniques In The Fragmentation Of International Law, Ralf Michaels, Joost H.B. Pauwelyn

Faculty Scholarship

One of the most pressing topics in current international law is fragmentation. Traditionally, most constructive attempts to deal with fragmentation have been based on analogies what one of us, in an earlier book, called "conflicts of norms" - those rules in domestic law that deal with conflicts of norms within one legal system. In this article, we assess under what circumstances a different approach, based on an analogy to conflict of laws - those rules in domestic law that deal with conflicts of norms between different legal systems - yields a more adequate structure. The result is that public international …

Unconstitutionally Male?: The Story Of United States V. Virginia, Katharine T. Bartlett

Faculty Scholarship

This article tracks the different views of gender equality reflected in United States v. Virginia, from trial through the various appeals, including the 1996 opinion of the United States Supreme Court, and through the actual integration of women into VMI. It highlights the fact that while many views of equality were represented in the case throughout its history, no party and no court addressed what is arguably the most objectionable feature of VMI, which was not that it excluded women, but that its "unique" pedagogical method was based on an explicitly demeaning and subordinating view of women.

Comparing Regulatory Oversight Bodies Across The Atlantic: The Office Of Information And Regulatory Affairs In The Us And The Impact Assessment Board In The Eu, Jonathan B. Wiener, Alberto Alemanno

Faculty Scholarship

‘Quis custodiet ipsos custodes?’ asked the Roman poet Juvenal – ‘who will watch the watchers, who will guard the guardians?’ As legislative and regulatory processes around the globe progressively put greater emphasis on impact assessment and accountability, we ask: who oversees the regulators? Although regulation can often be necessary and beneficial, it can also impose its own costs. As a result, many governments have embraced, or are considering embracing, regulatory oversight--frequently relying on economic analysis as a tool of evaluation. We are especially interested in the emergence over the last four decades of a new set of institutional actors, the …

Empagran’S Empire: International Law And Statutory Interpretation In The Us Supreme Court Of The 21st Century, Ralf Michaels

Faculty Scholarship

In its Empagran decision in 2004, the US Supreme Court decided that purchasers on foreign markets could not invoke US antitrust law even against a global cartel that affects also the United States. The article, forthcoming in a volume dedicated to the history on international law in the US Supreme Court, presents three radically different readings of the opinion. The result is that Empagran is a decision that is transnationalist in rhetoric, isolationist in application, and hegemonial in its effect. A decision with a seemingly straightforward argument is found riddled in the conflict between these different logics. A decision with …

Good Faith And Law Evasion, Samuel W. Buell

Faculty Scholarship

Laws imposing sanctions can be self-defeating by supplying incentive and guidance for actors engaged in socially undesirable activities to reshape conduct to avoid penalties. Sometimes this is deterrence. But if the new activity, as much as the old, contravenes the normative stance of the legal project, it is a failure of law. The problem of evasion warrants response in many fields - not least in criminal law despite the frequent and too simple assumption that legality-related values require narrow prohibitions that unavoidably permit evasion. Three common responses to evasion have serious deficits. Foregoing control of evasion is a mistake if …

Emergency And Escape: Explaining Derogations From Human Rights Treaties, Laurence R. Helfer, Emilie M. Hafner-Burton, Christopher J. Fariss

Faculty Scholarship

Several prominent human rights treaties attempt to minimize violations during emergencies by authorizing states to “derogate”—that is, to suspend certain civil and political liberties—in response to crises. The drafters of these treaties envisioned that international restrictions on derogations and international notification and monitoring mechanisms would limit rights suspensions during emergencies. This article analyzes the behavior of derogating countries using new global datasets of derogations and states of emergency from 1976 to 2007. We argue that derogations are a rational response to domestic political uncertainty. They enable governments facing serious threats to buy time and legal breathing space from voters, courts, …

The New Old Legal Realism, Mitu Gulati, Tracey E. George, Ann Mcginley

Faculty Scholarship

Do the decisions of appellate courts matter in the real world? The American judicial system, legal education, and academic scholarship are premised on the view that they do. The authors want to reexamine this question by taking the approach advocated by the original Legal Realists. The current project seeks to add to our knowledge of the relevance of case law by focusing on an area that has received little examination: how pronouncements about employment discrimination law by appellate courts translate into understandings and behavior at the ground level. As our lens, we use evidence of how people talk about the …

Reverse Incorporation Of State Constitutional Law, Joseph Blocher

Faculty Scholarship

State supreme courts and the United States Supreme Court are the independent and final arbiters of their respective constitutions, and may therefore take different approaches to analogous state and federal constitutional issues. Such issues arise often, because the documents were modeled on each other and share many of the same guarantees. In answering them, state courts have, as a matter of practice, generally adopted federal constitutional doctrine as their own. Federal courts, by contrast, have largely ignored state constitutional law when interpreting the federal constitution. In McDonald v. Chicago, to take only the most recent example, the Court declined to …

Viewpoint Neutrality And Government Speech, Joseph Blocher

Faculty Scholarship

Government speech creates a paradox at the heart of the First Amendment. To satisfy traditional First Amendment tests, the government must show that it is not discriminating against a viewpoint. And yet if the government shows that it is condemning or supporting a viewpoint, it may be able to invoke the government speech defense and thereby avoid constitutional scrutiny altogether. Government speech doctrine therefore rewards what the rest of the First Amendment forbids: viewpoint discrimination against private speech. This is both a theoretical puzzle and an increasingly important practical problem. In cases like Pleasant Grove City, Utah v. Summum, the …

Government Property And Government Speech, Joseph Blocher

Faculty Scholarship

The relationship between property and speech is close but complicated. Speakers use places and things to deliver their messages, and rely on property rights both to protect expressive acts and to serve as an independent means of expression. And yet courts and scholars have struggled to make sense of the property-speech connection. Is property merely a means of expression, or can it be expressive in and of itself? And what kind of “property” do speakers need to have – physical things, bundles of rights, or something else entirely?

In the context of government property and government speech, the ill-defined relationship …

Intra-Group Preferencing: Problems Of Proof In Colorism And Identity Performance Cases, Trina Jones

Faculty Scholarship

Historically, U.S. anti-discrimination law has been concerned with the total exclusion of certain groups from the workplace or from particular job categories within the workplace. Laws were directed at this across-the-board intolerance. As scholars (including Devon Carbado, Barbara Flagg, Mitu Gulati, Angela Harris and others) have noted, this is not the sole or arguably the primary way in which discrimination operates today. Homogeneous institutions and job categories are now suspicious (and presumably the market will no longer tolerate such places). Thus, instead of the wholesale exclusion of groups, what we are more likely to see is intra-group “screening” or “preferencing” …

Dangerous Categories: Narratives Of Corporate Board Diversity, Lissa Lamkin Broome, John M. Conley, Kimberly D. Krawiec

Faculty Scholarship

In this article, we report the results of a series of interviews with corporate directors about racial, ethnic, and gender diversity on corporate boards. On the one hand, our respondents were clear and nearly uniform in their statements that board diversity was an important goal worth pursuing. Yet when asked to provide examples or anecdotes illustrating why board diversity matters, many subjects acknowledged difficulty in illustrating theory with reference to practice.

This expressed reluctance to come to specific terms with general claims about the value of director diversity inspired our title phrase: dangerous categories. That is, while "diversity" evokes universal …

Financing Direct Democracy: Revisiting The Research On Campaign Spending And Citizen Initiatives, John M. De Figueiredo, Chang Ho Ji, Thad Kousser

Faculty Scholarship

The conventional view in the direct democracy literature is that spending against a measure is more effective than spending in favor of a measure, but the empirical results underlying this conclusion have been questioned by recent research. We argue that the conventional finding is driven by the endogenous nature of campaign spending: initiative proponents spend more when their ballot measure is likely to fail. We address this endogeneity by using an instrumental variables approach to analyze a comprehensive dataset of ballot propositions in California from 1976 to 2004. We find that both support and opposition spending on citizen initiatives have …

Adaptive Regulation In The Amoral Bazaar, Lawrence G. Baxter

Faculty Scholarship

Twelfth Oliver Schreiner Memorial Lecture,delivered on 20 October 2010 at the School of Law, University of the Witwatersrand, Johannesburg, South Africa. Many gradual changes in science, law and society are crystallizing to shape a significant transformation in administrative law. The doctrinal framework within which Justice Schreiner himself attempted to modernize how law should regulate government and private economic activity seems from our vantage point to be quite antiquated. In explaining why, my examples will come from the world of financial services, but they could easily be found anywhere in the area of law and regulation. First I will outline the …

Exploring The Wfo Option For Global Banking Regulation, Lawrence G. Baxter

Faculty Scholarship

The Global Financial Crisis and the global operations by participants in the financial services industry has led observers and even senior public representatives to call for global regulatory solutions that go beyond the current, transnational regulatory network (TRN) framework provided by the G20, the Financial Stability Board and the Basel Committee on Banking Supervision. The concept of a global banking regulator has often been advocated, but this is not remotely politically viable. Recently the imaginative concept of a World Financial Organization (WFO), that would follow the model of the World Trade Organization (WTO), has been proposed. Although attractive in that …

International Law And The U.S. Common Law Of Foreign Official Immunity, Curtis A. Bradley, Laurence R. Helfer

Faculty Scholarship

In Samantar v. Yousuf, 130 S. Ct. 2278 (2010), the U.S. Supreme Court unanimously held that the Foreign Sovereign Immunities Act does not apply to lawsuits brought against foreign government officials for alleged human rights abuses. The Court did not necessarily clear the way for future human rights litigation against such officials, however, cautioning that such suits “may still be barred by foreign sovereign immunity under the common law.” At the same time, the Court provided only minimal guidance as to the content and scope of common law immunity. Especially striking was the Court’s omission of any mention of the …

Capture In Financial Regulation: Can We Redirect It Toward The Common Good?, Lawrence G. Baxter

Faculty Scholarship

“Regulatory capture” is central to regulatory analysis yet is a troublesome concept. It is difficult to prove and sometimes seems refuted by outcomes unfavorable to powerful interests. Nevertheless, the process of bank regulation and supervision fosters a closeness between regulator and regulated that would seem to be conducive to “capture” or at least to fostering undue sympathy by regulators for the companies they oversee. The influence of very large financial institutions has also become so great that financial regulation appears to have become excessively distorted in favor of these entities and to the detriment of many other legitimate interests, including …

Legal Integration In The Andes: Law-Making By The Andean Tribunal Of Justice, Laurence R. Helfer, Karen J. Alter

Faculty Scholarship

The Andean Tribunal of Justice (ATJ) is a copy of the European Court of Justice (ECJ), and the third most active international court. This article reviews our findings based on an original coding of all ATJ preliminary rulings from 1984 to 2007, and over forty interviews in the region. We then compare Andean and European jurisprudence in three key areas: whether the tribunals treat the founding integration treaties as constitutions for their respective communities, whether the ATJ and ECJ have implied powers for community institutions that are not expressly enumerated in the founding treaties, and how the tribunals conceive of …

The Psychology Of Trial Judging, Neil Vidmar

Faculty Scholarship

Trial court judges play a crucial role in the administration of justice for both criminal and civil matters. Although psychologists have studied juries for many decades, they have paid relatively little attention to judges. Recent writings, however, suggest that there is increasing interest in the psychology of judicial decision making. In this article, I review several selected areas of judicial behavior in which decisions appear to be influenced by psychological dispositions, but I caution that a mature psychology of judging field will need to consider the influence of the bureaucratic court setting in which judges are embedded, judges’ legal training, …

Perspectives For Cyber Strategists On Law For Cyberwar, Charles J. Dunlap Jr.

Faculty Scholarship

The proliferation of martial rhetoric in connection with the release of thousands of pages of sensitive government documents by the WikiLeaks organization underlines how easily words that have legal meanings can be indiscriminately applied to cyber events in ways that can confuse decision makers and strategists alike. The WikiLeaks phenomenon is but the latest in a series of recent cyber-related incidents––ranging from cyber crises in Estonia and Georgia to reports of the Stuxnet cyberworm allegedly infecting Iranian computers––that have contributed to a growing perception that “cyberwar” is inevitable, if not already underway. All of this generates a range of legal …

Between Liberalism And Theocracy, John D. Inazu

Faculty Scholarship

Our symposium conveners have focused us on “the relationship between liberalism and Christianity and their influence on American constitutionalism.” My objective is to complicate the relationship and reorient the influence. The focus of my inquiry is the liberty of conscience and its implications for the relationship between church and state. By approaching these issues through the lens of political theology (as distinct from either political or constitutional theory), hope to show that some of the most significant embodiments of conscience in the American colonies can neither be squared with an individualistic liberalism (as some on the left are prone to …

The Curious Case Of Greening In Carbon Markets, James Salzman, William Boyd

Faculty Scholarship

Over the last several years, so-called carbon markets have
emerged around the world to facilitate trading in greenhouse gas
credits. This Article takes a close look at an unexpected and
unprecedented development in some of these markets—premium
“green” currencies have emerged and, in some cases, displaced
standard compliance currencies. Past experiences with other
environmental compliance markets, such as the sulfur dioxide and
wetlands mitigation markets, suggest the exact opposite should be
occurring. Indeed, buyers in such markets should only be interested in
buying compliance, not in the underlying environmental integrity of the
compliance unit. In some of the compliance carbon …

Mandatory Versus Default Rules: How Can Customary International Law Be Improved?, Curtis A. Bradley, Mitu Gulati

Faculty Scholarship

Customary International Law (CIL) is plagued with uncertainties about its sources, its content, its manipulability, and its normative attractiveness. The rise of law-making through multilateral treaties also makes the proper role of CIL increasingly uncertain. This is an opportune time, therefore, to be thinking of ways to revive and improve CIL. In a prior article, we argued that the "Mandatory View" of CIL, pursuant to which nations are barred from ever withdrawing unilaterally from rules of CIL, is functionally problematic, at least when applied across the board to all of CIL. We also suggested that CIL might be improved by …

The Law And Policy Of Judicial Retirement, Mitu Gulati, Stephen J. Choi, Eric A. Posner

Faculty Scholarship

Lifetime tenure maximizes judicial independence by shielding judges from political pressures, but it creates problems of its own. As is widely known, judges with judicial independence may implement their political preferences or shirk in other ways. Less attention has been given to another problem: that judges will remain in office after their abilities degrade as a result of old age. The U.S. federal system addresses these problems in an indirect way. When judges’ pensions vest, they receive a full salary regardless of whether they work or not; thus, the effective compensation for judicial work falls to zero. Judges can retire, …

Greek Debt: The Endgame Scenarios, Mitu Gulati, Lee C. Buchheit

Faculty Scholarship

Perhaps Greece -- a country with a debt to GDP already approaching 150 percent and set to move even higher -- avoids a debt restructuring. Perhaps not.

What are the possible scenarios if Greece cannot return to the capital markets to refinance this gargantuan debt stock once its EU/IMF bailout package expires in two years time? What would a Greek debt restructuring look like after mid-2013? And (sharp intake of breath here) what would happen if such a debt restructuring were undertaken before that point?

A Minimalist Approach To State ‘Bankruptcy’, Steven L. Schwarcz

Faculty Scholarship

Increasingly finding themselves in financial straitjackets, states have been turning to austerity measures, tax increases, privatization of services, and renegotiation of collective bargaining agreements. Absent a federal government bailout, however, states will also need debt relief if their debt burden becomes so crushing that reasonable efforts at fiscal reform will fail to avoid default. Some advocate providing this relief by, effectively, extending municipal bankruptcy law to states. That approach brings in excess baggage, however, engendering political opposition and constitutional concerns. There is a simpler solution: Enable states to work out their debt problems with their creditors. Although the main obstacle …

Drafting A Model Collective Action Clause For Eurozone Sovereign Bonds, Mitu Gulati, Lee C. Buchheit

Faculty Scholarship

In the wake of the Eurozone sovereign debt crisis, the European financial authorities announced last November that all Eurozone sovereign bonds issued after mid-2013 must contain an identical collective action clause (CAC) in order, if necessary, to facilitate a restructuring of those
instruments.

CACs in sovereign bonds have been the subject of considerable attention over the last ten years. They were introduced into sovereign bonds governed by U.S. law only in early 2003. Yet a surprising number of versions of the clause can be found in modern sovereign bonds.

The history of the research and development of this contractual provision …

Comparative Law, Ralf Michaels

Faculty Scholarship

Written for an encyclopedia on European private law, this brief
article addresses term, purposes, methods and development of
comparative law. Special attention is given to the role of comparative
law in European private law studies, European law-making and European
adjudication.