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Banking and Finance Law

Michigan Law Review

Journal

Risk

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Full-Text Articles in Law

Remembering Financial Crises: The Risk Implications Of The Rise Of Institutional Investors In Project Finance, David J. Park Jan 2018

Remembering Financial Crises: The Risk Implications Of The Rise Of Institutional Investors In Project Finance, David J. Park

Michigan Law Review

Barely a decade ago, a cascading sequence of market failures threatened to topple the global financial system. Public responses to the recent Financial Crisis were immediate and drastic to resuscitate the global economy while attempting to make the markets safer. Many financial services sectors have since recovered to pre-crisis levels. One such industry is project finance, which comprises various financing arrangements often used to fund long-term infrastructure or industrial projects. Curiously, significant post-crisis banking regulations and other global credit enhancement initiatives are pushing banks out of project finance and giving rise to institutional investors. This Comment argues that animated institutional …


The Basel Iii Liquidity Coverage Ratio And Financial Stability, Andrew W. Hartlage Dec 2012

The Basel Iii Liquidity Coverage Ratio And Financial Stability, Andrew W. Hartlage

Michigan Law Review

Banks and other financial institutions may increase the amount of credit available in the financial system by borrowing for short terms and lending for long terms. Though this "maturity transformation" is a useful and productive function of banks, it gives rise to the possibility that even prudently managed banks could fail due to a lack of liquid assets. The financial crisis of 2007-2008 revealed the extent to which the U.S. financial system is exposed to the risk of a system-wide failure from insufficient liquidity. Financial regulators from economies around the world have responded to the crisis by proposing new, internationally …


Modern Investment Management And The Prudent Man Rule, Creighton R. Meland Jr. May 1988

Modern Investment Management And The Prudent Man Rule, Creighton R. Meland Jr.

Michigan Law Review

A Review of Modern Investment Management and the Prudent Man Rule by Bevis Longstreth


The Propriety Of Benefit-Spreading Regulations Under The 10% Lending Limit Of The National Bank Act, Michigan Law Review Jun 1980

The Propriety Of Benefit-Spreading Regulations Under The 10% Lending Limit Of The National Bank Act, Michigan Law Review

Michigan Law Review

This Note examines whether the ten percent lending limit of the National Bank Act should be used to promote benefit-spreading. Section I evaluates the legislative and judicial history of the lending limit and concludes that Congress never intended the Comptroller to issue regulations to foster benefit-spreading. Section II examines the practical ramifications of the benefit-spreading regulations. It concludes that the lending limit cannot effectively foster benefit-spreading without undermining the risk-reducing function of the statute; that compliance with the benefit-spreading regulations is costly while the penalties for noncompliance are inappropriate and unfair; and that existing statutes better promote benefit-spreading while avoiding …


Bills And Notes - Domiciled Note As A Check - Incidence Of Loss From The Failure Of The Bank Of Domicile After Maturity, Charles H. Haines Jr. Feb 1939

Bills And Notes - Domiciled Note As A Check - Incidence Of Loss From The Failure Of The Bank Of Domicile After Maturity, Charles H. Haines Jr.

Michigan Law Review

Bonds of D County gave the holder the option of demanding payment at the office of the county treasurer or at a designated New York bank. At maturity, funds were available at the bank for payment, but the holder, P, made no presentment until eighteen days later, five days after the bank had failed, when demand was made on the county treasurer and payment refused. P sued. Held, the holder should recover the face of the bond regardless of the loss through the failure of the bank of domicile. Employers Mutual Insurance Co. v. Board of County Commissioners …


Banks And Banking - Incidence Of Loss Resulting From Payments By Drawee Bank Not In Accordance With Depositor's Orders Mar 1935

Banks And Banking - Incidence Of Loss Resulting From Payments By Drawee Bank Not In Accordance With Depositor's Orders

Michigan Law Review

The ordinary commercial deposit normally results in a debtor-creditor relationship between bank and depositor. It is familiar doctrine that in this situation a duty rests upon the bank to honor its creditor's properly drawn orders to the extent of the depositor's balance. Payments by the bank, ostensibly according to such orders, but which are in truth not in accordance therewith, are the bank's loss at least so far as the supposed drawer is concerned. In bookkeeping terms this means that payments by the bank not strictly in pursuance of genuine orders ordinarily cannot be charged against the account of the …


Suretyship - Release Of Surety Jun 1932

Suretyship - Release Of Surety

Michigan Law Review

Defendant was the surety on a fidelity bond of the treasurer of plaintiff corporation. The principal wrongfully deposited money in X Bank. This bank was about to be closed by the state, but Y Bank proposed to take over the assets and liabilities of X Bank if plaintiff would leave on deposit with them $200,000 for four years without interest. Plaintiff notified two of defendant's officers, but they lacked authority to act, and, prompt action being necessary, the arrangement was concluded without defendant's concurrence. At the end of the four years plaintiff sued defendant for the interest lost by reason …