Law Commons^™

Finding Shelter In A Time Of Crisis: A Process-Oriented Approach To Risk Management, Kristin Johnson

Kristin N Johnson

Success in financial markets rests on the effectiveness of a business’s risk management strategy: manage risks well and profits follow; fail to manage risks and a crisis ensues. It has long been evident that inadequate enterprise risk management policies, or internal risk-reducing strategies, create perilous consequences for a business. The recent financial crisis illustrates that the often disparate regulatory guidance and multiplicity of regulators who influence enterprise risk management policies were ill-suited to address conflicts and weaknesses in risk management accountability and enforcement mechanisms. During the crisis, a chorus of commentators demanded a federal solution to address the devastating economic …

The Dodd-Frank Wall Street Reform And Consumer Protection Act: What Caused The Financial Crisis And Will Dodd-Frank Succeed In Preventing Future Crises?, Charles W. Murdock

Charles W. Murdock

Summary: The Dodd-Frank Wall Street Reform and Consumer Protection Act: What Caused the Financial Crisis and Will Dodd-Frank Succeed in Preventing Future Crises?

We are still experiencing the devastating impact of the financial crisis which came to a head on September 18, 2008 when Secretary Paulson told Congressional leaders that “[u]nless you act, the financial system of this country and the world will melt down in a matter of days.”

To prevent future crises of this magnitude, last year Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act. However, this year, legislation has already been introduced to repeal …

Financial Crises In The United States And The European Union: Policy Responses, Successes And Failures And The Need For Further, Cross-National Reform, Jason Rudderman

Jason Rudderman

This paper examines the causes of the global financial crisis of 2008-2009 and explores the major financial reforms in the United States and the EU, offers comparisons of the legislation and recommends changes to the legislations that are aimed at minimizing the burden on taxpayers, and balancing the necessary intervention of governments in financial markets and the economy with capitalistic ideals. The lack of government oversight, predatory lending practices, and an overall environment of deregulation leading up to the financial crisis ultimately led to its collapse in late 2008. In response to the collapse of the global financial system, the …

Foreclosing On The Federal Power Grab: Dodd-Frank, Preemption, And The State Role In Mortgage Servicing Regulation, Kurt Eggert

Kurt Eggert

No abstract provided.

Dodd-Frank, Regulatory Innovation, And The Safety Of Consumer Financial Products, Melissa Jacoby

Melissa B. Jacoby

Among the many parts of the Dodd-Frank Wall Street Reform and Consumer Protection Act, few have received as much mainstream attention as the creation of the Bureau of Consumer Financial Protection. As is often the case with legislation in recent years, though, some of the most vocalized critiques of the Bureau lack a foundation in Dodd-Frank as enacted or in the Bureau’s start-up efforts. This brief essay explores the nature of the Bureau and its promising possibilities for regulatory innovation that should transcend stale debates about regulatory overreach or command-and-control approaches. This commentary also reviews the unusual dialogue preceding Dodd-Frank …

Know Your Customer - Or Not, Genci Bilali

Genci Bilali

“Know Your Customer” (KYC) is the due diligence and bank regulation that banks and other financial institutions perform in order to identify their clients and ascertain relevant information pertinent to doing financial business with them. The KYC policies are largely applied from banks and other financial institutions not only to prevent identity theft fraud, money laundering and terrorist financing but also to regulate the risk in business of lending and investment banking activities between banks and their customers.

Commercial and investment banks failed to comply and implement fully the KYC policies in lending monies and selling financial products to their …