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Full-Text Articles in Law
O Tell Me The Truth About Bail-In: Theory And Practice, Marco Ventoruzzo, Giulio Sandrelli
O Tell Me The Truth About Bail-In: Theory And Practice, Marco Ventoruzzo, Giulio Sandrelli
The Journal of Business, Entrepreneurship & the Law
In this perspective, the purpose of this Article is to analyze the functioning of the European regulatory framework for the crisis of credit institutions in the light of its early applications, and with a special focus on the bail-in tool. We investigate how the new resolution mechanisms—rooted in the principle of private sector involvement in banking restructurings—have interplayed with (and tried to re-shape) legal and institutional contexts still characterized by an attitude to bail-out rescues and by non-harmonized national insolvency legislations.
Online Lenders Shouldn't Get Mad Over Madden, Benjamin Lo
Online Lenders Shouldn't Get Mad Over Madden, Benjamin Lo
The Journal of Business, Entrepreneurship & the Law
The Second Circuit’s surprising decision in Madden v. Midland Funding caused consternation within the financial services industry. There, the Madden Court held that the National Bank Act’s pre-emption of state usury law did not apply to consumer debt sold by banks to third parties. Under the Second Circuit’s ruling, third-party buyers could not be certain of loan values, potentially making consumer finance markets less liquid. This decision immediately sparked concerns from the alternative finance industry, which worried that the secondary market for consumer debt would dry up and reduce consumer credit availability. It also alarmed financial technology startups such as …
Libor: Everything You Ever Wanted To Know But Were Afraid To Ask, Michael R. Koblenz, Kenneth M. Labbate, Carrie C. Turner
Libor: Everything You Ever Wanted To Know But Were Afraid To Ask, Michael R. Koblenz, Kenneth M. Labbate, Carrie C. Turner
The Journal of Business, Entrepreneurship & the Law
The goal of this article is to present the reader with a general overview of the LIBOR: its genesis and development, how and why London bankers manipulated the LIBOR, the liability of implicated parties, criminal penalties, the impact of criminal penalties on director and officer insurance carriers, and what the future holds for the LIBOR.
Drastic Times Call For Drastic Risk Measures: Why Value-At-Risk Is (Still) A Flawed Preventative Of Financial Crises And What Regulators Can Do About It, Andrew L. Mcelroy
Drastic Times Call For Drastic Risk Measures: Why Value-At-Risk Is (Still) A Flawed Preventative Of Financial Crises And What Regulators Can Do About It, Andrew L. Mcelroy
The Journal of Business, Entrepreneurship & the Law
Bank regulators recently proposed the most fundamental reforms to U.S. banking law in decades, yet the value-at-risk statistic--replete with known deficiencies--remains the basis of the capital adequacy requirement. Consequently, there exists an unresolved tension in the law: the purpose of the banking rules is to require riskier financial institutions to hold additional capital, yet the value-at-risk statistic used to make this assessment induces a perverse incentive to hold the riskiest securities. Overlaid on this framework is the wide latitude afforded to banks in designing their value-at-risk models. This Article explores foreseeable issues with the regulatory reliance on value-at-risk. Moreover, it …
Is There A Dual Banking System?, Carl Felsenfeld, Genci Bilali
Is There A Dual Banking System?, Carl Felsenfeld, Genci Bilali
The Journal of Business, Entrepreneurship & the Law
There is a fierce controversy being waged today about the status of the historic dual banking system in American law. National banks (banks chartered by the national government) derive their powers from federal law. States, on the other hand, assert that they should be able to control certain aspects of national bank operations such as consumer protection written as state law. While the national banks acknowledge that states do have certain areas where they may control national bank activities--much contract law, for example, which is essentially state law--the national banks also assert a high level of authority--preemption--over the states where …