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Washington and Lee University School of Law

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Articles 31 - 60 of 124

Full-Text Articles in Banking and Finance Law

Conceptions Of Corporate Purpose In Post-Crisis Financial Firms, Christopher M. Bruner Jan 2013

Conceptions Of Corporate Purpose In Post-Crisis Financial Firms, Christopher M. Bruner

Scholarly Articles

American "populism" has had a major impact on the development of U.S. corporate governance throughout its history. Specifically, appeals to the perceived interests of average working people have exerted enormous social and political influence over prevailing conceptions of corporate purpose - the aims toward which society expects corporate decision-making to be directed. This article assesses the impact of American populism upon prevailing conceptions of corporate purpose - contrasting its unique expression in the context of financial firms with that arising in other contexts - and then examines its impact upon corporate governance reforms enacted in the wake of the financial …


Is Hedge Fund Adviser Registration Necessary To Accomplish The Goals Of The Dodd–Frank Act’S Title Iv?, Luther R. Ashworth Ii Jan 2013

Is Hedge Fund Adviser Registration Necessary To Accomplish The Goals Of The Dodd–Frank Act’S Title Iv?, Luther R. Ashworth Ii

Washington and Lee Law Review

No abstract provided.


Risk-Based Student Loans , Michael Simkovic Jan 2013

Risk-Based Student Loans , Michael Simkovic

Washington and Lee Law Review

No abstract provided.


Why Register Hedge Fund Advisers—A Comment, Lyman P.Q. Johnson Jan 2013

Why Register Hedge Fund Advisers—A Comment, Lyman P.Q. Johnson

Washington and Lee Law Review

No abstract provided.


Review: Is Hedge Fund Registration Necessary? , J. W. Verret Jan 2013

Review: Is Hedge Fund Registration Necessary? , J. W. Verret

Washington and Lee Law Review

No abstract provided.


The Card Act On Campus, Jim Hawkins Jun 2012

The Card Act On Campus, Jim Hawkins

Washington and Lee Law Review

In February 2010, the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act intervened in student credit card markets in a dramatic way, attempting to prevent student over-indebtedness, to end aggressive marketing to college students, and to reveal and change avaricious agreements between credit card issuers and colleges. Yet, two years after it became effective, we still have little measurement of whether the Act has accomplished these goals. This Article offers the first empirical assessment of the rationales for the CARD Act and the Act’s effects. Over the two years since the CARD Act went into effect, I conducted surveys of …


Foreword For Regulation In The Fringe Economy Symposium, John P. Caskey Mar 2012

Foreword For Regulation In The Fringe Economy Symposium, John P. Caskey

Washington and Lee Law Review

No abstract provided.


Mortgaging Human Capital: Federally Funded Subprime Higher Education, Jean Braucher Mar 2012

Mortgaging Human Capital: Federally Funded Subprime Higher Education, Jean Braucher

Washington and Lee Law Review

The for-profit higher education sector, primarily funded by federal student aid dollars, produces both the highest debts and defaults and lowest completion rates for its students. In response, the U.S. Department of Education (DOE) has promulgated the Gainful Employment Rule to require for-profit colleges and universities to meet either repayment or debt-to-income benchmarks to remain eligible to receive federal Higher Education Act funding. This Article describes the business model of the career colleges and their rapid growth over the last decade, the history of proprietary school regulation, the limited remedies for overindebtedness of former students, and the tests imposed by …


Regulating Online Peer-To-Peer Lending In The Aftermath Of Dodd–Frank: In Search Of An Evolving Regulatory Regime For An Evolving Industry, Eric C. Chaffee, Geoffrey C. Rapp Mar 2012

Regulating Online Peer-To-Peer Lending In The Aftermath Of Dodd–Frank: In Search Of An Evolving Regulatory Regime For An Evolving Industry, Eric C. Chaffee, Geoffrey C. Rapp

Washington and Lee Law Review

The 2010 Dodd–Frank Wall Street Reform and Consumer Protection Act called for a government study of the regulatory options for on-line Peer-to-Peer lending. On-line P2P sites, most notably for-profit sites Prosper.com and LendingClub.com, offer individual “investors” the chance to lend funds to individual “borrowers.” The sites promise lower interest rates for borrowers and high rates of return for investors. In addition to the media attention such sites have generated, they also raise significant regulatory concerns on both the state and federal level. The Government Accountability Office report produced in response to the Dodd–Frank Act failed to make a strong recommendation …


Payday Lending, Bankruptcy, And Insolvency, Richard Hynes Mar 2012

Payday Lending, Bankruptcy, And Insolvency, Richard Hynes

Washington and Lee Law Review

Economic theory suggests that payday lending can either increase or decrease consumer welfare. Consumers can use payday loans to cushion the effects of financial shocks, but payday loans may also increase the chance that consumers will succumb to temptation or cognitive errors and seek instant gratification. Both supporters and critics of payday lending have alleged that the welfare effects of the industry can be substantial and that the legalization of payday lending can even have measurable effects on proxies for financial distress, such as bankruptcy, foreclosure, and property crime. Critics further allege that payday lenders target minority and military communities, …


Congress Protected The Troops: Can The New Cfpb Protect Civilians From Payday Lending?, Creola Johnson Mar 2012

Congress Protected The Troops: Can The New Cfpb Protect Civilians From Payday Lending?, Creola Johnson

Washington and Lee Law Review

In 2007, Congress enacted a law, commonly referred to as the Military Lending Act (MLA), which placed a 36% interest rate cap on several consumer loans, including payday loans, and prohibits lenders from engaging in several practices considered predatory. However, the MLA grants these protections only to active-duty military members and their dependent family members. In the wake of the mortgage foreclosure crisis, Congress passed and President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd–Frank Act), which creates a new federal agency, the Bureau of Consumer Financial Protection (CFPB), to focus on …


After The Great Recession: Regulating Financial Services For Low- And Middle-Income Communities, Ronald J. Mann Mar 2012

After The Great Recession: Regulating Financial Services For Low- And Middle-Income Communities, Ronald J. Mann

Washington and Lee Law Review

No abstract provided.


The Alliance Between Payday Lenders And Tribes: Are Both Tribal Sovereignty And Consumer Protection At Risk?, Nathalie Martin, Joshua Schwartz Mar 2012

The Alliance Between Payday Lenders And Tribes: Are Both Tribal Sovereignty And Consumer Protection At Risk?, Nathalie Martin, Joshua Schwartz

Washington and Lee Law Review

No abstract provided.


The Damage Of Debt, Katherine Porter Mar 2012

The Damage Of Debt, Katherine Porter

Washington and Lee Law Review

No abstract provided.


Regulation Of Payday Loans: Misguided?, Paige Marta Skiba Mar 2012

Regulation Of Payday Loans: Misguided?, Paige Marta Skiba

Washington and Lee Law Review

Since payday lenders came on the scene in 1990s, regulation of their “predatory” practices has been swift and often severe. Fourteen states now ban payday loans outright. From an economist’s perspective, high-interest, short-term, small loans need not be a bad thing. Payday credit can help borrowers “smooth” consumption, unequivocally improving welfare as consumers borrow from future good times to help cover current shortfalls. These benefits of credit can accrue even at typical payday loan interest rates of 300%–600% APR. The question of whether payday credit actually assists borrowers in this way is an empirical one. In this Article, I review …


Payday Loan Prohibitions: Protecting Financially Challenged Consumers Or Pushing Them Over The Edge?, William M. Webster, Iv Mar 2012

Payday Loan Prohibitions: Protecting Financially Challenged Consumers Or Pushing Them Over The Edge?, William M. Webster, Iv

Washington and Lee Law Review

As recovery from the economic downturn continues, American consumers face an unabated need for short-term, small-dollar credit. To cope with this need, millions choose to take out payday loans. Often the subject of controversy and criticism, these loans have become a mainstream credit option, considered by consumers alongside so-called “traditional” credit products offered by banks and credit unions. This article examines the issues surrounding payday loans, including consumer credit needs, critical options for fulfilling those needs and consumer rationale, from the perspective of Advance America, Cash Advance Centers, Inc., the country’s largest non-bank provider of cash advance services. When faced …


The Economics And Regulation Of Bank Overdraft Protection, Todd J. Zywicki Mar 2012

The Economics And Regulation Of Bank Overdraft Protection, Todd J. Zywicki

Washington and Lee Law Review

Consumer use of bank overdraft protection has risen rapidly over the past decade, leading to increased scrutiny and the imposition of new regulations. Public and political debate regarding overdraft protection has highlighted anecdotal stories about irresponsible college students who overdraw their accounts to buy a cup of coffee, thereby triggering substantial overdraft fees. But there has been little systematic examination of the safety and soundness or consumer protection issues implicated by the increased use of overdraft protection. Available evidence indicates that those who rely on overdraft protection tend to have low credit ratings and use overdraft protection to maintain short-term …


Credit On Wheels: The Law And Business Of Auto-Title Lending, Jim Hawkins Mar 2012

Credit On Wheels: The Law And Business Of Auto-Title Lending, Jim Hawkins

Washington and Lee Law Review

Despite the fact that they are used by millions of Americans, auto-title loans have received little attention in the legal literature about consumer credit. Friends and foes of title lending make confident statements about their net welfare effects, but we still lack empirical data on many of the central policy questions that title lending raises. This Article offers new evidence about the title lending transaction, paying special attention to the risks borrowers face when they use their vehicles as collateral for the loan. I gathered this evidence by obtaining new reports from state regulators about the title lending industry, examining …


Loan Sharks, Interest-Rate Caps, And Deregulation, Robert Mayer Mar 2012

Loan Sharks, Interest-Rate Caps, And Deregulation, Robert Mayer

Washington and Lee Law Review

The specter of the loan shark is often conjured by advocates of price deregulation in the market for payday loans. If binding price caps are imposed, the argument goes, loan sharks will be spawned. This is the loan-shark thesis. This Article tests that thesis against the historical record of payday lending in the United States since the origins of the quick-cash business around the Civil War. Two different types of creditors have been derided as “loan sharks” since the epithet was first coined. One used threats of violence to collect its debts but the other did not. The former has …


“Warning: Predatory Lender”—A Proposal For Candid Predatory Small Loan Ordinances, Christopher L. Peterson Mar 2012

“Warning: Predatory Lender”—A Proposal For Candid Predatory Small Loan Ordinances, Christopher L. Peterson

Washington and Lee Law Review

Over a hundred different local governments around the country have adopted ordinances restricting small, high-cost loans. This trend reflects the solid majority of the American public that opposes the legality of triple-digit interest rate loans and the long historical tradition of treating payday and car-title lending as a serious civil offense or even a crime. Nevertheless, perhaps owing to limits on municipal power, local payday lending law has generated relatively little scholarship or commentary. This paper describes the existing local law governing small, high-cost consumer loans and proposes a more emphatic ordinance that better reflects the policy judgment of many …


Credit And Human Welfare: Lessons From Microcredit In Developing Nations, Alan M. White Mar 2012

Credit And Human Welfare: Lessons From Microcredit In Developing Nations, Alan M. White

Washington and Lee Law Review

Deregulation of usury laws, in the United States and in developing nations, has permitted various forms of small loans to be made to the poor and the working class, sometimes at very high prices. In the case of credit, more is not always better. A human development approach to evaluating the welfare impacts of credit products for the poor asks these questions: does a credit product or program increase income or consumption, achieve savings through investment in capital goods, or smooth consumption and avert crises, all at a reasonable cost? Or does the credit on balance redistribute income away from …


Credit Rating Agencies Deserve Credit For The 2007–2008 Financial Crisis: An Analysis Of Cra Liability Following The Enactment Of The Dodd-Frank Act, Steven Harper Sep 2011

Credit Rating Agencies Deserve Credit For The 2007–2008 Financial Crisis: An Analysis Of Cra Liability Following The Enactment Of The Dodd-Frank Act, Steven Harper

Washington and Lee Law Review

No abstract provided.


Credit Ratings In Insurance Regulation: The Missing Piece Of Financial Reform, John Patrick Hunt Sep 2011

Credit Ratings In Insurance Regulation: The Missing Piece Of Financial Reform, John Patrick Hunt

Washington and Lee Law Review

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 directed federal financial regulators to remove credit ratings from their rules, but had nothing to say about the use of credit ratings by state insurance regulators. This omission is significant because insurers own nearly twice as many foreign, corporate, and municipal bonds as banks do. During the 2000s, state insurance regulators came to rely increasingly on rating agencies rather than the regulators’ in-house valuation office to assess the credit risks of these holdings. After the perceived widespread failure of ratings in the crisis, the insurance regulators did undertake a …


Unjust Impoverishment: Using Restitution Reasoning In Today’S Mortgage Crisis, Peter Linzer, Donna L. Huffman Jun 2011

Unjust Impoverishment: Using Restitution Reasoning In Today’S Mortgage Crisis, Peter Linzer, Donna L. Huffman

Washington and Lee Law Review

No abstract provided.


The Changing Face Of Money, Christopher M. Bruner Jan 2011

The Changing Face Of Money, Christopher M. Bruner

Scholarly Articles

In this essay I argue that widespread failure to comprehend the intrinsic nature of modern money loomed large in the recent financial and economic crisis, and that broader comprehension of its meaning is a precondition for effective post-crisis reforms. First, I provide a brief history of money, emphasizing its gradual divergence from inherent value. I then consider the value of today's dollar in economic, legal, and psychological terms, arguing that each perspective conveys a single over-arching lesson - that better comprehending our money requires better comprehending ourselves. The introspection that this exercise demands reveals with unique clarity some of the …


Why Banks Are Not Allowed In Bankruptcy, Richard M. Hynes, Steven D. Walt Jun 2010

Why Banks Are Not Allowed In Bankruptcy, Richard M. Hynes, Steven D. Walt

Washington and Lee Law Review

Unlike most other countries, the United States uses different Procedures to resolve insolvent banks and nonbank firms. The Bankruptcy Code divides control over nonbank firms among the various claimants, and a judge supervises the resolution process. By contrast, the FDIC acts as the receiver for an insolvent bank and has almost complete con trol. Other claimants can sue the FDIC, but they cannot obtain injunctive relief and their damages are limited to the amount that they would have received in liquidation. The FDIC has acted as the receiver of insolvent banks since the Great Depression, and the concentration of power …


When Securitization Complicates The Issue: What Are The Homeowner's Defenses To Foreclosure?, Victoria V. Corder Sep 2009

When Securitization Complicates The Issue: What Are The Homeowner's Defenses To Foreclosure?, Victoria V. Corder

Washington and Lee Journal of Civil Rights and Social Justice

No abstract provided.


The Aig Bailout, William K. Sjostrum, Jr. Jun 2009

The Aig Bailout, William K. Sjostrum, Jr.

Washington and Lee Law Review

On February 28, 2008, American International Group, Inc., the then largest insurance company in the United States, announced 2007 earnings of $6.20 billion or $2.39per share. Its stock closed that day at $50.15 per share. Less than seven months later, however, AIG was on the verge of bankruptcy and had to be rescued by the United States government through an $85 billion loan. Government aid has since grown to $182.5 billion, and AIG's stock recently traded at less than $1.00 per share. The Article explains why AIG, a company with $1 trillion in assets and $95.8 billion in shareholders' equity, …


Achieving The American Dream In Debt? Why The Usa Patriot Act Puts Undocumented Immigrants At Risk For Abuse By The Payday Loan Industry, Katherine Houren Mar 2009

Achieving The American Dream In Debt? Why The Usa Patriot Act Puts Undocumented Immigrants At Risk For Abuse By The Payday Loan Industry, Katherine Houren

Washington and Lee Journal of Civil Rights and Social Justice

No abstract provided.


Prohibiting De Facto Insurance Redlining: Will Hurricane Katrina Draw A Discriminatory Redline In The Gulf Coast Sands Prohibiting Access To Home Ownership?, Steven Plitt, Daniel Maldonado Mar 2008

Prohibiting De Facto Insurance Redlining: Will Hurricane Katrina Draw A Discriminatory Redline In The Gulf Coast Sands Prohibiting Access To Home Ownership?, Steven Plitt, Daniel Maldonado

Washington and Lee Journal of Civil Rights and Social Justice

No abstract provided.