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Articles 61 - 90 of 478
Full-Text Articles in Banking and Finance Law
Ad Hoc Emergency Liquidity Programs In The 21st Century, Steven Kelly, Vincient Arnold, Greg Feldberg, Andrew Metrick
Ad Hoc Emergency Liquidity Programs In The 21st Century, Steven Kelly, Vincient Arnold, Greg Feldberg, Andrew Metrick
Journal of Financial Crises
This paper surveys 22 case studies of 21st century instances when financial crisis-fighters implemented ad hoc emergency liquidity (AHEL) interventions, interventions designed to provide liquidity to a troubled institution that the authorities believe is systemically important. While emergency liquidity support is often introduced with the real or communicated intention of preventing illiquidity from leading to insolvency, the liquidity crisis should instead be viewed as the manifestation of the market’s assessing the firm as nonviable as a going concern. For that reason, authorities should provide AHEL assistance only to institutions that they have deemed viable or that they have committed to …
Brazil: Banco Btg Pactual Emergency Liquidity Program, 2015, Vincient Arnold
Brazil: Banco Btg Pactual Emergency Liquidity Program, 2015, Vincient Arnold
Journal of Financial Crises
On November 25, 2015, André Esteves, then CEO of Banco BTG Pactual, a large Brazilian investment bank, was arrested by Brazilian authorities in connection with suspected involvement in a corruption scandal. Although the arrest did not involve BTG in any capacity and Esteves was later acquitted, the company’s stock quickly collapsed and depositors and other creditors rushed to reduce their exposures to the company. Depositors withdrew certificates of bank deposits, which BTG relied on to fund its daily operations. By November 27, BTG shares had fallen 26%. On December 2, the top seven shareholders of BTG took control of the …
From Theory To Practice: A True-Crime Podcast, Lauren V. Peckham
From Theory To Practice: A True-Crime Podcast, Lauren V. Peckham
Senior Honors Projects
The Criminal Element is an innovative, victim-centered podcast that bridges the gap between criminological theory and real-world criminal cases. The podcast is designed as an educational resource for undergraduate Criminology and Criminal Justice students, alongside general audience members interested in learning more about criminological theory. Through the lens of true crime, this podcast is an engaging exploration of foundational and advanced theories while avoiding sensationalism and exploitation, a prevalent problem among true crime media. Each episode connects criminological theoretical concepts – such as strain, social learning, and social disorganization – to contemporary and historical cases, providing listeners with accessible and …
Louboutin Lawfare: Exploring Conceptions Of Sanctions' Utility Through Export Controls On Luxury Goods, Vinita R. Singh
Louboutin Lawfare: Exploring Conceptions Of Sanctions' Utility Through Export Controls On Luxury Goods, Vinita R. Singh
Northwestern University Law Review
There is widespread consensus amongst scholars that sanctions—the deliberate withdrawal of customary trade and financial relations—do not work. Despite this perception, states are deploying sanctions at an increasing rate. This Article explains this paradox by arguing the predominant notion of sanctions’ utility employed by scholars is unduly constrained, narrowly focusing on the ability of such measures to modify the behavior of sanctioned parties while disregarding the alternative benefits this instrument can deliver. To support this argument, this Article uses export controls on luxury goods deployed in connection with the Russo–Ukraine War as a case study. Under prevailing perceptions of sanctions’ …
Are Csr Incidents Truly Bad News?, Chen Chen, John A. Doukas, Rongyao Gloria Zhang
Are Csr Incidents Truly Bad News?, Chen Chen, John A. Doukas, Rongyao Gloria Zhang
Finance Faculty Publications
We revisit whether disclosures of negative Corporate Social Responsibility (CSR) incidents adversely affect firms' stock prices. While univariate tests reveal significant negative abnormal returns around incident announcements, the effect disappears once firm characteristics, industry, and time‐fixed effects are controlled for. We find no robust evidence that CSR incidents or firms' Environmental, Social, and Governance (ESG) commitments influence stock price reactions on the event day or across broader windows. These results suggest that previously documented negative market responses may be attributable to endogeneity. Our baseline results are consistent with informed trading behavior: short‐sellers do not increase activity in incident‐related stocks relative …
Transformative Impact Of Ai And Digital Technologies On The Fintech Industry: A Comprehensive Review, Soudeh Pazouki, Behdad Jamshidi, Armia Jalali, Arya Tafreshi
Transformative Impact Of Ai And Digital Technologies On The Fintech Industry: A Comprehensive Review, Soudeh Pazouki, Behdad Jamshidi, Armia Jalali, Arya Tafreshi
Finance Faculty Publications
This paper examines the impact of artificial intelligence (AI) and digital technologies on the financial technology (FinTech) industry and demonstrates how AI- enabled strategies are increasing the ability of businesses not only to grow, but also to better serve their customers through operational efficiencies. But as immersive as the technological advancements may be, they present challenges in connection with increasingly complicated licensing regulations and a constantly evolving technological landscape. We examine the way AI and algorithms are streamlining workflows, enhancing productivity and expanding access to financial resources for traditionally under – served populations. The paper also discusses the macroeconomic implications …
Forging Monetary Hawks: Early-Life Inflation Experiences And Government Debt In Africa, Christine Strong
Forging Monetary Hawks: Early-Life Inflation Experiences And Government Debt In Africa, Christine Strong
Economics Faculty Publications
This study uses a novel dataset to examine the impact of early‐life inflation experiences on government debt across 30 African nations from 1980 to 2022. We propose that central bankers who encountered inflation crises during their formative years are more likely to develop preferences for hawkish monetary policies. However, for these preferences to influence fiscal outcomes, central bankers must operate within an environment of institutional independence. Indeed, our analysis reveals that past exposures to inflation crises, on their own, have no statistically significant impact on government debt. However, when central bank independence is accounted for, a significant negative relationship emerges, …
Andrew Phang (Gen. Ed.), Pioneer, Polymath And Mentor: The Life And Legacy Of Yong Pung How, Kwan Ho Lau, Bryan Leow
Andrew Phang (Gen. Ed.), Pioneer, Polymath And Mentor: The Life And Legacy Of Yong Pung How, Kwan Ho Lau, Bryan Leow
Research Collection Yong Pung How School Of Law
Many know the story of modern Singapore in broad outline. When the country attained independence in 1965, it was not industrialised and fishing villages still dotted the landscape. By 1990, GDP per capita had risen to around US$13,000, far exceeding its neighbours and on par with Hong Kong and New Zealand. A further three decades on, Singapore today boasts gleaming skyscrapers, well-developed infrastructure and a high degree of trust by residents and investors alike in its government.
Financial Regulation, Aurelio Gurrea-Martinez, Nydia Remolina Leon
Financial Regulation, Aurelio Gurrea-Martinez, Nydia Remolina Leon
Research Collection Yong Pung How School Of Law
No abstract provided.
How Halal Certification And Islamic Ethics Tackle Greenwashing: New Solutions For A Sustainable Economy, Muhammad Afif Ryan Pratama
How Halal Certification And Islamic Ethics Tackle Greenwashing: New Solutions For A Sustainable Economy, Muhammad Afif Ryan Pratama
Journal Of Middle East and Islamic Studies
This research explores the role of halal certification and Islamic ethics in addressing greenwashing within the financial sector. Greenwashing, the practice of exaggerating environmental responsibility, undermines genuine sustainability efforts and trust among consumers and investors. Islamic finance, based on principles of transparency, social justice, and ethical business practices, provides a robust framework to counter such deceptive practices. The study proposes expanding halal certification to incorporate environmental standards, ensuring that companies demonstrate both ethical and sustainable practices. This integrated approach offers a unique solution to combat greenwashing and aligns with broader sustainability goals. By including sustainability in halal certification, the credibility …
Lessons Learned: Karl-Philipp Wojick, Maryann Haggerty
Lessons Learned: Karl-Philipp Wojick, Maryann Haggerty
Journal of Financial Crises
Karl-Philipp Wojcik is the general counsel of the European Union’s Single Resolution Board (SRB), the central resolution authority within the European Commission (EC) banking union. The banking union, which as of January 1, 2023, encompasses the 20 eurozone countries, along with Bulgaria, was established as part of the financial system reforms stemming from the Global Financial Crisis and the ensuing European sovereign debt crisis. The SRB’s stated mission is to ensure orderly resolution of failing banks, protect taxpayers from state bailouts, and promote financial stability. Wojcik became SRB general counsel in November 2020. Previously, he was a member of the …
Lessons Learned: Subba Rao Duvvuri, Salil Gupta
Lessons Learned: Subba Rao Duvvuri, Salil Gupta
Journal of Financial Crises
Subba Rao Duvvuri served as governor of the Reserve Bank of India (RBI) for five years (2008–13). Before that, he was finance secretary to the government of India (2007–08), and secretary to the prime minister’s Economic Advisory Council (2005–07). With a career spanning 35 years in the Indian Administrative Services, Duvvuri has held various positions at the state level in the government of Andhra Pradesh, and at the central government of India. Duvvuri was previously lead economist at the World Bank (1999–2004) and, after 2013, served as a visiting fellow at the National University of Singapore and the University of …
Lessons Learned: Calvin Mitchell Iii, Mercedes Cardona
Lessons Learned: Calvin Mitchell Iii, Mercedes Cardona
Journal of Financial Crises
Calvin Mitchell III served as executive vice president of the communications group within the executive office of the Federal Reserve Bank of New York (FRBNY) during the Global Financial Crisis. In 2008, Mitchell was tapped by Timothy Geithner, who was then FRBNY president, to head a new group charged with expanding the communications and community affairs functions. Mitchell left the FRBNY in 2009 for the private sector and returned to government in 2021 as assistant secretary for public affairs in the US Treasury Department.
International Monetary Fund: Special Drawing Rights Allocations, 2009, Ikbal S. Ahluwalia, Owen Heaphy, Rosalind Z. Wiggins
International Monetary Fund: Special Drawing Rights Allocations, 2009, Ikbal S. Ahluwalia, Owen Heaphy, Rosalind Z. Wiggins
Journal of Financial Crises
Despite efforts by the world’s major economies to address stresses in the global financial system, by early 2009, the Global Financial Crisis caused developing and lower-income countries to experience shortages of the major reserve currencies. In August 2009, the International Monetary Fund (IMF) distributed a general allocation of Special Drawing Rights (SDR) of unprecedented size—totaling USD 250 billion (SDR 161.3 billion)—to all member countries in an effort to address these issues and provide liquidity to the world’s economies. In September 2009, it also distributed a special “catch-up” allocation of USD 33 billion in SDRs (SDR 21.5 billion) to eligible members …
Lessons Learned: Jason Cave, Vincient Arnold, Greg Feldberg
Lessons Learned: Jason Cave, Vincient Arnold, Greg Feldberg
Journal of Financial Crises
Jason Cave was the senior adviser to the chairman of the Federal Deposit Insurance Corporation (FDIC) from 2008 to 2011 and the deputy director of the Division of Complex Financial Institutions at the FDIC from 2011 to 2013. This Lessons Learned summary is based on an interview with Cave held on April 8, 2024. During the interview, Cave discussed the so-called ring-fencing arrangements planned, considered, or executed between various agencies of the US government—the Federal Reserve, Department of the Treasury, and FDIC—and three banks: Wachovia, Citigroup, and Bank of America. These arrangements, sometimes referred to as wraps or risk shields, …
International Monetary Fund: Short-Term Liquidity Line, 2020, Carey K. Mott, Léo Brougher
International Monetary Fund: Short-Term Liquidity Line, 2020, Carey K. Mott, Léo Brougher
Journal of Financial Crises
As the COVID-19 pandemic spread in March 2020, global financial conditions tightened considerably. In response, global reserve currency-issuing countries extended bilateral swap lines to select countries. Strong demand for US dollar liquidity among emerging markets led the International Monetary Fund (IMF) to introduce the Short-Term Liquidity Line (SLL) on April 15, 2020. The SLL functioned as a swap lending facility. Unlike other IMF liquidity tools, the SLL was a revolving credit line that allowed countries to repeatedly draw funds and make repayments, with each repayment restoring access up to the approved limit across SLL arrangements. Its purpose was to enable …
International Monetary Fund: Foreign Exchange Liquidity Through The Special Drawing Rights Allocation, 2021, Vincient Arnold
International Monetary Fund: Foreign Exchange Liquidity Through The Special Drawing Rights Allocation, 2021, Vincient Arnold
Journal of Financial Crises
The official response to the COVID-19 pandemic was costly for governments, particularly those in developing economies with significant existing external debt. On August 2, 2021, the International Monetary Fund (IMF) announced in a press release the allocation of SDR 456 billion (USD 650 billion) in Special Drawing Rights (SDRs) to “address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy.” The COVID-19 allocation was a form of unconditional (or “concessional”) liquidity to IMF member nations, similar to a capital injection or grant. It was the fourth-ever general allocation and the largest …
Lessons Learned: Martín Redrado, Vincient Arnold
Lessons Learned: Martín Redrado, Vincient Arnold
Journal of Financial Crises
Martín Redrado was appointed president of the Central Bank of Argentina by President Néstor Kirchner in 2004 and oversaw measures to manage the external shocks of the Global Financial Crisis of 2007–09. He resigned in 2010 after President Cristina Fernández de Kirchner tried to remove him over a dispute regarding the use of the bank’s reserves to fund the government. After leaving the bank, Redrado authored the book No Reserve: The Limit of Absolute Power, which argues against the danger of mixing politics and economics. He is currently a director of the think tank Fundación Capital and most recently was …
Lessons Learned: Alfred Dellibovi, Maryanne Chute Lynch, Rosalind Z. Wiggins
Lessons Learned: Alfred Dellibovi, Maryanne Chute Lynch, Rosalind Z. Wiggins
Journal of Financial Crises
The Yale Program on Financial Stability (YPFS) interviewed Alfred DelliBovi about his tenure as president and chief executive officer of the Federal Home Loan Bank of New York leading up to and during the Global Financial Crisis of 2007–09 (GFC). The Federal Home Loan Banks (FHLBs) played a critical and unexpected lending role for their member banks at the start of the crisis. DelliBovi remained in his position for 21 years, until 2014. Before moving to the FHLB, DelliBovi had served as deputy secretary at the United States Department of Housing and Urban Development (HUD) from 1989 to 1992, in …
Policy Note | Weekly Fed Report Still Drives Discount Window Stigma, Steven Kelly
Policy Note | Weekly Fed Report Still Drives Discount Window Stigma, Steven Kelly
Journal of Financial Crises
As banking regulators work to destigmatize the Federal Reserve’s discount window—and fervently so since the 2023 banking crisis—they’ve pointed to several potentially fruitful policy routes. These have included supervisory improvements, regulatory changes, and operational enhancements by both the banks and the Fed. Left off the menu so far have been changes to the Fed’s weekly publications that reveal up-to-date discount window borrowing data by regional geography. Reforms following the Global Financial Crisis of 2007–2009 have made mandatory the disclosure of discount window borrowers on a two-year lag—higher transparency than previously when no disclosure was required. However, bigger banks, such as …
Policy Note | Discount Window Stigma: What's Design Got To Do With It?, Susan Mclaughlin
Policy Note | Discount Window Stigma: What's Design Got To Do With It?, Susan Mclaughlin
Journal of Financial Crises
This article utilizes discount window transaction data, which the Federal Reserve began disclosing in 2010, to assess how the Fed’s 2003 redesign of the discount window has affected banks’ use of the window. The data show that while the discount window remains stigmatized and relatively little used outside periods of funding market stress, secondary credit has at times played a role in supporting bank recovery and resolution, as envisioned by the 2003 redesign. This development raises a policy question: has the two-tiered design of the discount window implemented in 2003, in which a lending facility for sound banks operates alongside …
United States: Citigroup Capital Injection, 2008, Benjamin Hoffner, Vincient Arnold
United States: Citigroup Capital Injection, 2008, Benjamin Hoffner, Vincient Arnold
Journal of Financial Crises
During the first three weeks of November 2008, Citigroup’s stock price dropped almost 80%, and its credit default swap spreads spiked as the market lost confidence in the bank’s ability to honor its commitments. Counterparties pulled away, and regulators determined Citi’s failure would constitute a systemic risk. On November 23, 2008, the Treasury, Federal Reserve Board, and Federal Deposit Insurance Corporation announced a package of measures to rescue Citi, which included an Asset Guarantee Program (AGP) to cover $306 billion in Citi’s assets and an ad hoc capital injection—the Targeted Investment Program (TIP). Under the guarantee, Citi would absorb the …
Russia: Otkritie Bank Restructuring, 2017, Benjamin Hoffner
Russia: Otkritie Bank Restructuring, 2017, Benjamin Hoffner
Journal of Financial Crises
In July and August 2017, Otkritie Bank, Russia’s largest privately owned bank, experienced a deposit run related to concerns over Otkritie’s recent acquisitions. The run prompted Otkritie’s shareholders to approach the Central Bank of Russia (CBR) for assistance. On August 29, 2017, the CBR announced a rescue plan for Otkritie. In it, the CBR pledged to become Otkritie’s main investor using a newly created resolution mechanism wherein the CBR would take at least a 75% equity stake using funds from the Fund for Banking Sector Consolidation, a subdivision of the CBR. The CBR simultaneously appointed a provisional administration, composed of …
United States: Bank Of America Capital Injection, 2009, Benjamin Hoffner, Vincient Arnold
United States: Bank Of America Capital Injection, 2009, Benjamin Hoffner, Vincient Arnold
Journal of Financial Crises
On September 15, 2008, Bank of America (BofA) announced a merger with the investment bank Merrill Lynch. In December, BofA learned that Merrill Lynch had experienced large, unexpected losses amounting to $15.5 billion during the fourth quarter of 2008. In light of these losses, BofA’s CEO informed the US Treasury secretary and Federal Reserve chairman that BofA intended to invoke the material adverse change clause of the merger agreement, allowing for a renegotiation of, or escape from, the merger. Officials at the Fed and Treasury warned BofA that a failure of the merger would have adverse consequences for BofA and …
Switzerland: Schweizerische Volksbank Capital Injection, 1933, Anmol Makhija
Switzerland: Schweizerische Volksbank Capital Injection, 1933, Anmol Makhija
Journal of Financial Crises
Schweizerische Volksbank, or Swiss People’s Bank, grew to be the second-largest bank in Switzerland by 1930, when its balance sheet peaked at 1.7 billion Swiss francs (CHF). Beginning in 1929, nonperforming assets weighed on Volksbank’s profitability. By 1933, the bank faced losses on CHF 118.5 million in assets, representing approximately 10% of total assets. The government provided liquidity in the form of loans and deposits to Volksbank in 1931 and again in 1933 until it could finalize a capital injection. In 1933, the government determined that Volksbank was too important to the national economy to allow its failure. As owners …
Switzerland: Ubs Capital Injection, 2008, Anmol Makhija
Switzerland: Ubs Capital Injection, 2008, Anmol Makhija
Journal of Financial Crises
UBS, the eighth-largest bank in the world and the largest bank in Switzerland in 2008, incurred write-downs totaling USD 50 billion during the Global Financial Crisis, mostly on exposures to securities linked to US subprime mortgages. On October 16, 2008, the Swiss Federal Council announced that the government would subscribe to CHF 6 billion (USD 5.3 billion) of mandatory convertible notes (MCNs) issued by UBS to restore confidence in the bank and the financial system. UBS agreed to use the government’s capital to fund the equity for a special purpose vehicle, StabFund, that the central bank created to take over …
Spain: Caja De Ahorros Castilla–La Mancha Capital Injection, 2009, Lakshimi Swaminathan, Vincient Arnold
Spain: Caja De Ahorros Castilla–La Mancha Capital Injection, 2009, Lakshimi Swaminathan, Vincient Arnold
Journal of Financial Crises
Caja de Ahorros Castilla–La Mancha (CCM) was a small Spanish savings bank with just 1% market share in deposits and loans. Following years of rapid credit expansion in the real estate sector and reliance on wholesale funding markets to carry out its operations between 2000 and 2008, CCM found itself on the brink of insolvency in early 2009, with a Tier 1 capital ratio of just 1.3%, compared with the 8% regulators required. The authorities placed the bank under administration in 2009. Consequently, the Spanish Savings Bank Deposit Guarantee Fund (Fondo de Garantía de Depósitos de Ahorros, or FGD) agreed …
Portugal: Banco Espírito Santo Capital Injection, 2014, Salil Gupta, Shavonda Brandon
Portugal: Banco Espírito Santo Capital Injection, 2014, Salil Gupta, Shavonda Brandon
Journal of Financial Crises
Banco Espírito Santo (BES) was the second-largest private bank in Portugal in 2014, with assets of EUR 80 billion (USD 81 billion). A capital increase of EUR 1.1 billion to the BES was concluded on market terms in June 2014. The Bank of Portugal (BOP) adopted a resolution measure for BES on August 3, 2014, to safeguard financial stability by protecting all depositors and ensuring continuation of operating activities of the bank. The Portuguese Resolution Fund provided equity capital of EUR 4.9 billion to a bridge bank, Novo Banco, with 100% public ownership and the expectation of sale to private …
Russia: Otkritie Bank Capital Injection, 2017, Benjamin Hoffner
Russia: Otkritie Bank Capital Injection, 2017, Benjamin Hoffner
Journal of Financial Crises
In July and August 2017, Otkritie Bank, Russia’s largest privately owned bank, experienced a deposit run related to concerns over recent acquisitions, including a large, troubled bank and insurance company. The run prompted Otkritie’s shareholders to ask the Central Bank of Russia (CBR) for assistance, which the CBR announced on August 29, 2017. In the announcement and subsequent press interviews, the CBR pledged to become Otkritie’s main investor using a newly created resolution mechanism wherein the CBR would take at least a 75% equity stake using funds from the Fund for Banking Sector Consolidation (FBSC), a subsidiary of the CBR. …
Latvia: Parex Bank Capital Injection, 2008, Bailey Decker
Latvia: Parex Bank Capital Injection, 2008, Bailey Decker
Journal of Financial Crises
Heading into the Global Financial Crisis, JSC Parex banka was Latvia’s second-largest bank in terms of assets, comprising 13.8% of total assets in the Latvian banking sector. In autumn 2008, Parex faced a capital shortfall owing to massive credit and market losses in addition to increasing liquidity problems and deposit runs of 240 million Latvian lats (LVL; USD 428.6 million). Parex’s capital adequacy ratio fell below the regulatory minimum of 8% on October 28, 2008. Parex had two senior syndicated loans maturing in February and June 2009, totaling EUR 775 million (USD 992 million). Latvian authorities doubted that Parex would …