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Full-Text Articles in Law

The Virus, Risk, And Commercial Mortgage-Backed Securities: Examining Dodd-Frank’S Impact In The Midst Of A Pandemic, Owen Haney Jan 2021

The Virus, Risk, And Commercial Mortgage-Backed Securities: Examining Dodd-Frank’S Impact In The Midst Of A Pandemic, Owen Haney

Fordham Journal of Corporate & Financial Law

When lawmakers sought to reshape the financial industry through the passage of the Dodd-Frank Act in 2010, they specifically attacked the “moral hazard” in the asset-backed securities market that they believed was partly responsible for the collapse of global financial markets. Congress identified several practices in asset-backed securitizations that posed a risk to the world economy. In particular, regulators believed that the “originate-to-distribute” model, whereby loan originators—those parties armed with the best knowledge regarding the quality of the loans in the transaction and who consequently set underwriting standards—could sell off the loans without bearing any risk should those borrowers (homeowners …


A New Era In The Application Of U.S. Securities Law Abroad: Valuing The Presumption Against Extraterritoriality And Managing The Future With The Sustainable- Domestic-Integrity Standard, Alina Veneziano Dec 2019

A New Era In The Application Of U.S. Securities Law Abroad: Valuing The Presumption Against Extraterritoriality And Managing The Future With The Sustainable- Domestic-Integrity Standard, Alina Veneziano

Annual Survey of International & Comparative Law

The U.S. Supreme Court in Morrison held that Section 10(b) of the Exchange Act did not apply extraterritorially, lacking a clear indication by Congress of the intent to do so. In reaching this conclusion, it clarified that the reach of Section 10(b) is a merits question, not a question of subject matter jurisdiction and stated that the focus of the statute was upon purchases and sales of securities in the United States while articulating a bright-line transactional test to determine whether extraterritorial application was appropriate. The transactional test completely rejected the conduct/effects tests, which had been used by courts for …


The Consumer Financial Protection Bureau's Structural Integrity And A Call For Adaptive And Incremental Agency Design Policy, Hannah Clendening Jan 2018

The Consumer Financial Protection Bureau's Structural Integrity And A Call For Adaptive And Incremental Agency Design Policy, Hannah Clendening

Indiana Law Journal

INTRODUCTION

I. UNDERSTANDING AND RATIONALIZING COMPETING DESIGN OBJECTIVES

A. CONGRESSIONAL INTENT AND THE CFPB’S FORMATION

B. D.C. CIRCUIT’S REASONING IN PHH CORP. V. CONSUMER FINANCIAL PROTECTION BUREAU

C. BASIC TENETS OF LEADING ORGANIZATIONAL DESIGN THEORIES

D. ANOTHER LOOMING CONSIDERATION: AGENCY CAPTURE

II. A NEED FOR ADAPTIVE AND INCREMENTAL APPROACHES TO AGENCY DESIGN

CONCLUSION


Mandatory Arbitration In Consumer Finance And Investor Contracts, Michael S. Barr Jan 2017

Mandatory Arbitration In Consumer Finance And Investor Contracts, Michael S. Barr

Book Chapters

This chapter focuses on the use of mandatory pre-dispute arbitration clauses in a subset of consumer contracts – those involving consumer finance and investor products and services. Arbitration clauses are pervasive in financial contracts – for credit cards, bank accounts, auto loans, broker-dealer services, and many others. In the wake of the recent financial crisis, Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank). Dodd-Frank authorises the new Consumer Financial Protection Bureau (CFPB) and the Securities and Exchange Commission (SEC) to prohibit or condition the use of arbitration clauses in consumer finance and investment contracts, …


Financial Reform: Making The System Safer And Fairer, Michael S. Barr Jan 2017

Financial Reform: Making The System Safer And Fairer, Michael S. Barr

Articles

In the fall of 2008, the financial crisis crushed the U.S. economy and plunged the country into the Great Recession. The crisis shuttered American businesses, cost millions of Americans their jobs, and wiped out home values and household savings. The macro effects hit hardest and were the longest lasting for those least able to bear the brunt of the crisis. It was devastating to middle-income families and perhaps even more so to low- and moderate-income households, who had little financial buffer (Barr 2012a). Financial stability, never robust for these families, dropped precipitously (Barr and Schaffa 2016). Both in the United …


Mobile Banking: The Answer For The Unbanked In America?, Catherine Martin Christopher Mar 2016

Mobile Banking: The Answer For The Unbanked In America?, Catherine Martin Christopher

Catholic University Law Review

In the United States, the poor often lack access to mainstream banking services. Instead, they rely on expensive, poorly regulated alternatives like check cashers, payday lenders, pawnshops, and auto title lenders. These financial products jeopardize poor people’s financial and physical security. In pushing adoption of traditional banking products, both government officials and private enterprise have attempted to craft solutions to the banking access problem, but so far these attempts have fallen short. This Article asserts that mobile banking may be a transformative technology that can significantly increase financial inclusion in the United States.

The Article discusses current statistics and demographics …


Mandatory Arbitration In Consumer Finance And Investor Contracts, Michael S. Barr Oct 2015

Mandatory Arbitration In Consumer Finance And Investor Contracts, Michael S. Barr

Articles

Mandatory pre-dispute arbitration clauses are pervasive in consumer financial and investor contracts—for credit cards, bank accounts, auto loans, broker-dealer services, and many others. These clauses often ill serve households. Consumers are typically presented with contracts on a “take it or leave it” basis, with no ability to negotiate over terms. Arbitration provisions are often not clearly disclosed, and in any event are not salient for consumers, who do not focus on the importance of the provision in the event that a dispute over the contract later arises, and who may misforecast the likelihood of being in such a dispute. The …


Coming Up Short: The United States' Second-Best Strategies For Corralling Purely Speculative Derivatives, Timothy E. Lynch Dec 2014

Coming Up Short: The United States' Second-Best Strategies For Corralling Purely Speculative Derivatives, Timothy E. Lynch

Faculty Works

Purely speculative derivatives (PSDs) are derivatives in which neither counterparty is engaged in hedging. Unless used for entertainment purposes, PSDs are irrational, less-than-zero-sum transactions. Entities that engage in PSDs jeopardize their stakeholders and increase systemic risk. PSDs can also increase moral hazard, be used for regulatory arbitrage, and redirect resources away from efficient allocation of market capital. PSDs should be unenforceable, void for public policy reasons, except where expressly permitted to provide gambling entertainment, enhance price discovery, or increase liquidity for hedgers. In the U.S., however, PSDs are often legal and enforceable, even after the financial crisis of 2008 that …


The Volcker Rule, Banking Entities, And Covered Funds Activities, Jeffrey Koh, Kyle Gaughan Dec 2014

The Volcker Rule, Banking Entities, And Covered Funds Activities, Jeffrey Koh, Kyle Gaughan

Michigan Business & Entrepreneurial Law Review

With the passage of the 2010 Dodd-Frank Act, Congress instituted a host of new laws attempting to protect consumers from the types of risky trading that led to the 2008 economic crisis. However, many of the new rules and regulations, including the Volcker Rule, are yet to fully take effect. Among other restrictions, the Volcker Rule attempts to curtail risky trading by limiting banking entity investments in private equity and venture capital funds. As the Volcker Rule nears its implementation deadline, banking entities are concerned that they will face substantial losses in having to comply with the Volcker Rule by …


Behaviorism In Finance And Securities Law, David A. Skeel Jr. Jan 2014

Behaviorism In Finance And Securities Law, David A. Skeel Jr.

All Faculty Scholarship

In this Essay, I take stock (as something of an outsider) of the behavioral economics movement, focusing in particular on its interaction with traditional cost-benefit analysis and its implications for agency structure. The usual strategy for such a project—a strategy that has been used by others with behavioral economics—is to marshal the existing evidence and critically assess its significance. My approach in this Essay is somewhat different. Although I describe behavioral economics and summarize the strongest criticisms of its use, the heart of the Essay is inductive, and focuses on a particular context: financial and securities regulation, as recently revamped …


Hedge Fund Manager Registration Under The Dodd-Frank Act, Wulf A. Kaal Jun 2013

Hedge Fund Manager Registration Under The Dodd-Frank Act, Wulf A. Kaal

San Diego Law Review

Part I of this Article introduces the issue of hedge fund registration and the tension between regulators and the hedge fund industry regarding the appropriate level of regulatory oversight. After a short introduction of historical attempts to register hedge fund managers, Part II describes the legal requirements in the Dodd-Frank Act pertaining to hedge fund managers. Over fifty years of low-level regulatory oversight for the hedge fund industry came to an end with the enactment of the Dodd-Frank Act. Part III outlines the methodological approach of the survey study. It introduces the survey instrument, data sources, sampling, coding, and coding …


Dodd-Frank Act And Remittances To Post-Conflict Countries: The Law Of Unintended Consequences Strikes Again, Raymond Natter Jan 2013

Dodd-Frank Act And Remittances To Post-Conflict Countries: The Law Of Unintended Consequences Strikes Again, Raymond Natter

Raymond Natter

The Dodd-Frank Act established a new Federal framework for the regulation of international remittance payments that originate in the U.S. However, the statute and implementing regulations may have the unintended consequence of disrupting the flow of remittance funds to post-conflict nations.


Consumer Financial Protection And Community Banks, John T. Adams Jan 2013

Consumer Financial Protection And Community Banks, John T. Adams

University of Arkansas at Little Rock Law Review

The Dodd-Frank Act (Dodd-Frank) was enacted following the 2007-2008 financial crisis as the result of calls in Washington to protect average Americans from the depredations of Wall Street. Specifically, proponents of Dodd-Frank pointed to greed, carried out through the business practices at large commercial and investment banks, as the cause of the financial crisis. Accordingly, Dodd-Frank sought to place the most stringent restrictions on the activities of large commercial and investment banks of any legislation since the Great Depression.

However, the perception of rapacious business practices on Wall Street does not apply as directly to community banks. Situated somewhere between …


Dodd-Frank, Securitization, And The Subprime Mortgage Crisis, Stephen P. Hoffman Jan 2012

Dodd-Frank, Securitization, And The Subprime Mortgage Crisis, Stephen P. Hoffman

Stephen P. Hoffman

There are few things more constant in life than the rise and fall of financial markets. When markets crash, however, we are forced to restore them while learning from our mistakes. In the wake of the recent subprime mortgage crisis, Congress has drastically but deservedly overhauled the regulation of financial markets in order to not only prevent such disasters in the future, but to help restore financial stability more quickly if and when they do occur. In this Paper, I provide a background of the events leading up to the most devastating financial crisis since the Great Depression, focusing on …


Examining Timely Disclosure Of Material Information To Shareholders And The Privacy Concerns Of Executive Officers, Ufuoma Barbara Akpotaire Apr 2011

Examining Timely Disclosure Of Material Information To Shareholders And The Privacy Concerns Of Executive Officers, Ufuoma Barbara Akpotaire

Ufuoma Barbara Akpotaire

On January 20, 1993, Michael Walsh, the former Chairman and CEO of Tenneco revealed to the public that he had brain cancer. This type of disclosure of health issues are arguable serious enough to affect Wall Street. Other company officials have previously made similar disclosures such as Hugh Martin, CEO of Pacific Biosciences who in October 2010 disclosed to his employees that he had cancer of the Blood (multiple myeloma), and Harry J. Pearce, the Vice President of General Motors, who disclosed in 2001 that he had leukemia.

The above public disclosures are however more the exceptions than the rule. …


Barriers To Market Discipline: A Comparative Study Of Mortgage Market Regulation, Vincent Di Lorenzo Jan 2011

Barriers To Market Discipline: A Comparative Study Of Mortgage Market Regulation, Vincent Di Lorenzo

Vincent Di Lorenzo

This paper explores mortgage market reforms in the U.S. and U.K. in response to the recent mortgage market crisis. Two issues are examined. First, the paper explores the extent to which regulatory bodies have recognized behavioral barriers to market discipline on the part of not only consumers but also industry actors. Second the paper examines the varied response in the U.S. and U.K. to both market limitations and behavioral limitations to self-protection and self-discipline that led to unsafe lending practices in the period 2003 through 2007. The greater emphasis on rules-based regulation in the U.S. after 2008 is compared with …


Ability To Pay, John A. E. Pottow Jan 2011

Ability To Pay, John A. E. Pottow

Articles

The landmark Dodd-Frank Act of 2010 ("Dodd-Frank") transforms the regulation of consumer credit in the United States. Many of its changes have been high-profile, attracting considerable media and scholarly attention, most notably the establishment of the Consumer Financial Protection Bureau ("CFPB"). Even specific consumer reforms, such as a so-called "plain vanilla" proposal, drew hot debate and lobbying firepower. But when the dust settled, one profoundly transformative innovation that did not garner the same outrage as plain vanilla or the CFPB did get into the law: imposing upon lenders a duty to assure a borrower's ability to repay. Ensuring a borrower's …