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Full-Text Articles in Law
Fundamental Forces Driving United States And International Financial Regulations Reform, Lawrence G. Baxter
Fundamental Forces Driving United States And International Financial Regulations Reform, Lawrence G. Baxter
Faculty Scholarship
Multiple forces create a systemic crisis of the proportions of the Global Financial Crisis of 2008. Global and domestic financial reform is a difficult and perplexing task, one that is likely to take many years, and one that will surely continue to be shaped by a diverse range of forces. Recent measures remain incomplete and in some cases are even proving to be misdirected. This article considers seven fundamental forces shaping actions on future reform, specifically the (1) long term impact of the Crisis (and all financial crises); (2) increase in the “financialization” of the global economy, seemingly disproportionate to …
Shadow Banking, Financial Markets, And The Real Estate Sector, Steven L. Schwarcz
Shadow Banking, Financial Markets, And The Real Estate Sector, Steven L. Schwarcz
Faculty Scholarship
This is a relatively brief “firestarter” talk prepared by the author for the World Economic Forum’s Industry Partnership Strategists Meeting 2012 (held on October 3, 2012) on transformation of the real estate sector in light of ongoing shifts in the financial markets and broader global trends.
Statistical Knowledge Deconstructed, Kenneth Simons
Statistical Knowledge Deconstructed, Kenneth Simons
Faculty Scholarship
The law frequently distinguishes between individualized knowledge (awareness that one’s act will harm a particular victim, e.g., driving through an intersection while aware that one’s automobile is likely to injure a pedestrian) and statistical knowledge (awareness that one’s activity or multiple acts will, to a high statistical likelihood, harm one or more potential victims, e.g., proceeding with a large construction project that one confidently predicts will result in worker injuries). Under tort and criminal law doctrine, acting with individualized knowledge is ordinarily much more difficult to justify, and, if unjustified, much more culpable, than acting with statistical knowledge. Yet the …
Marginalizing Risk, Steven L. Schwarcz
Marginalizing Risk, Steven L. Schwarcz
Faculty Scholarship
A major focus of finance is reducing risk on investments, a goal commonly achieved by dispersing the risk among numerous investors. Sometimes, however, risk dispersion can cause investors to underestimate and under-protect against risk. Risk can even be so widely dispersed that rational investors individually lack the incentive to monitor it. This Article examines the market failures resulting from risk dispersion and analyzes when government regulation may be necessary or appropriate to limit these market failures. The Article also examines how such regulation should be designed,including the extent to which it should limit risk dispersion in the first instance.
Shadow Banking, Financial Markets, And The Real Estate Sector, Steven L. Schwarcz
Shadow Banking, Financial Markets, And The Real Estate Sector, Steven L. Schwarcz
Faculty Scholarship
This is a relatively brief “firestarter” talk prepared by the author for the World Economic Forum’s Industry Partnership Strategists Meeting 2012 (held on October 3, 2012) on transformation of the real estate sector in light of ongoing shifts in the financial markets and broader global trends.