Banking and Finance Law Commons^™

Paying To Save: Tax Withholding And Asset Allocation Among Low- And Moderate-Income Taxpayers, Michael S. Barr, Jane Dokko

Law & Economics Working Papers Archive: 2003-2009

We analyze the phenomenon that low- and moderate-income (LMI) tax filers exhibit a “preference for over-withholding” their taxes, a measure we derive from a unique set of questions administered in a dataset of 1,003 households, which we collected through the Survey Research Center at the University of Michigan. We argue that the relationship between their withholding preference and portfolio allocation across liquid and illiquid assets is consistent with models with present-biased preferences, and that individuals exhibit self-control problems when making their consumption and saving decisions. Our results support a model in which individuals use commitment devices to constrain their consumption. …

Going Public, Selling Stock, And Buying Liquidity, Richard A. Booth

Working Paper Series

It is a well known anomaly of corporation finance that initial public offerings (IPOs) tend to be underpriced. That is, it appears that shares tend to be offered at a price that is below what the market would bear. Scholars have offered several explanations, most of which focus on various sorts of underwriter opportunism (and insider acquiescence therein). But it is difficult to believe that competition among underwriters does not force offerings to be made at the highest possible price, particularly in view of the numerous alternatives to traditional underwriting methods that have arisen in recent years. The persistence of …

When Should Investor Reliance Be Presumed In Securities Class Actions, Roberta S. Karmel

Faculty Scholarship

No abstract provided.

How The Residential Mortgage-Backed Securities Market Impacts Dirt Lawyers And Their Clients, David J. Reiss

Cornell Law Faculty Publications

No abstract provided.

Is The Market For Ceos Rational?, Charles M. Yablon

Articles

The article challenges the arms-length bargaining model of CEO compensation, arguing that managerial power, social dynamics, and psychological factors significantly influence compensation decisions. It critiques both the managerial power thesis and the arms-length bargaining model, advocating for a more nuanced understanding that incorporates these non-economic influences. CEO compensation is not solely tied to performance but is shaped by boards' overconfidence, cognitive biases, and the cult of the CEO, leading to inefficient pay structures that often fail to align with shareholder interests.

It-Apas: Harmonizing Inconsistent Transfer Pricing Rules In Income Tax - Customs - Vat, Richard Thompson Ainsworth

Faculty Scholarship

In most jurisdictions there are three separate spheres of transfer pricing analysis - income tax, customs and VAT. Although they share policy objectives, terminology and frequently borrowing methodologies from one another these domestic transfer pricing systems are not in harmony.

Businesses find this lack of harmony costly, problematical, but also a planning opportunity. The door is open for arbitrage.

What if the transfer pricing rules within a jurisdiction were harmonized? The World Customs Organization (WCO) and the Organization of Economic Cooperation and Development (OECD) are considering this question.

This paper synthesizes the range of transfer pricing regimes currently in use, …

Car Flipping In The U.K.: The Vat Fraud Marketplace And Certified Solutions, Richard Thompson Ainsworth

Faculty Scholarship

Missing Trader Intra-Community (MTIC) fraud and its offspring carousel fraud and contra trading fraud are siphoning huge amounts of VAT revenue from the UK Treasury. This fraud is not a function of the goods involved. It is a function of the market-place. Recently another type of market-place dependent VAT fraud has taken hold in the UK - car-flipping.

In some instances the market-place where these frauds festers is a pre-existing or natural market-place, one that grows out of legitimate commercial practices. Fraudsters enter this market-place (so the argument goes) and take advantage of legitimate businesses who unwittingly get caught up …

Expanding Homeownership Opportunity Ii: The Softsecond Loan Program, 1991-2006, Jim Campen

Gastón Institute Publications

This report provides data on lending by the SoftSecond Loan Program during the most recent three-year period (2004-2006) as well as over the sixteen-year life of the program. The Mortgage Lending Committee of the Massachusetts Community & Banking Council (MCBC) has had a special interest in the SoftSecond program since its inception and has carefully monitored the performance of its loans. The report updates an earlier report prepared for MCBC by the present author in 2004: Expanding Homeownership Opportunity: The SoftSecond Loan Program, 1991-2003. Detailed information about the origins and evolution of the program, and about the details of …

Reforming Key International Financial Institutions For The 21st Century: Hearing Before The Subcomm. On Security And International Trade And Finance Of The S. Comm. On Banking, Housing, And Urban Affairs, 110th Cong., Aug. 2, 2007 (Statement Of Daniel K. Tarullo, Geo. U. L. Center), Daniel K. Tarullo

Testimony Before Congress

No abstract provided.

Stochastic Modeling Of Retail Mortgage Loans Based On Past Due, Prepaid, And Default States, Chang Liu

Doctoral Dissertations

Stochastic models were developed that provide important measures related to retail mortgages and credit cards for the management of a bank. Based on Markov theory, two models were developed that predict mortgage portfolio size and expected duration of stay in each of the states, which are defined according to the criteria of Basel Accord II and the Federal Reserve Bank. Also, to facilitate comparisons among different types of credit products and different time periods, a model was developed to generate a health index for a retail mortgage. This model could be easily extended, using multivariate regression or multivariate time series …

Geo-Politics, The ‘War On Terror’ And The Competitiveness Of The City Of London, Richard Woodward

Books/Book Chapters

No abstract provided.

The Missing Link Between Insider Trading And Securities Fraud, Richard A. Booth

Working Paper Series

In a recent article, I argued that diversified investors - the vast majority of investors - would prefer that securities fraud class actions under the 1934 Act and Rule 10b-5 be dismissed in the absence of insider trading or similar offenses during the fraud period. See Richard A. Booth, The End of the Securities Fraud Class Action as We Know It, 4 Berk. Bus. L. J. 1 (2007), http://ssrn.com/abstract=683197. In this article, I draw on the classic case, SEC v. Texas Gulf Sulfur Company, to show that the federal courts originally viewed securities fraud as inextricably connected to insider trading …

Wal-Mart Bank In Mexico: Money To The Masses And The Home-Host Hole, Anna Gelpern

Scholarly Articles in Law Reviews & Journals

In November 2006 Wal-Mart's Mexican subsidiary received approval to open a bank. The application faced little opposition in Mexico, unlike the company's failed effort to start a bank in the United States. This was partly because in Mexico, Wal-Mart's entry was generally regarded as increasing competition in a historically concentrated banking sector. With over three-quarters of all Mexicans unbanked, the authorities also looked to Wal-Mart to reach the underserved. Along with the promise, Wal-Mart's entry presents a transnational regulatory dilemma with implications beyond Wal-Mart and Mexico. Because it is Wal-Mart's only banking venture, the new institution will have its Mexican …

Cross-Monitoring And Corporate Governance, Joanna M. Shepherd, Frederick Tung, Albert H. Yoon

Faculty Scholarship

We take the view that corporate governance must involve more than corporate law. Despite corporate scholars' nearly exclusive focus on corporate law mechanisms for controlling managerial agency costs, shareholders are not the only constituency concerned with such costs. Given the thick web of firms' contractual commitments, it should not be a surprise that other financial claimants may also attempt to control agency costs in their contracts with the firm. We hypothesize that this cross-monitoring by other claimants has value for shareholders.

We examine bank loans for empirical evidence of the value of cross-monitoring. Our approach builds on prior empirical work …

Pangaea: Converging Global Approaches To Bundled Brokerage And Soft Dollar Practices, Andrew R. Mannarino

Pace Law Review

No abstract provided.

Predatory Structured Finance, Christopher L. Peterson

Cardozo Law Review

No abstract provided.

Nontraditional Mortgage Products: Does Guidance Effectively Inform Borrowers Of Risk, Stuart M. Rigot

North Carolina Banking Institute

No abstract provided.

Creditor Certainty And Consumer Protection: Complaints As Initial Communications Under The Fair Debt Collection Practices Act, Brian Koontz

North Carolina Banking Institute

No abstract provided.

Regulatory Guidance On Concentrations In Commercial Real Estate Lending, H. Gary Pannell, Robert L. Carothers Jr.

North Carolina Banking Institute

No abstract provided.

Bank Holding Company Trust Preferred Securities: Recent Developments, Todd H. Eveson, John F. Schramm

North Carolina Banking Institute

No abstract provided.

Individual Development Accounts In North Carolina, Susan A. Williams

North Carolina Banking Institute

No abstract provided.

Stored Value Cards: Should We Know The Holder, John T. Albers

North Carolina Banking Institute

No abstract provided.

Secrets Hurt: How Swift Shook Up Congress, The European Union, And The U.S. Banking Industry, Jeremy S. Shrader

North Carolina Banking Institute

No abstract provided.

The Curse Of History: Good Bank Brands Make Bad Bank Trademarks, John M. Conley, Jayne C. Hunter

North Carolina Banking Institute

No abstract provided.

The Rise Of Southern Banking And The Disparities Among The States Following The Southeastern Regional Banking Compact, Thomas D. Hills

North Carolina Banking Institute

No abstract provided.

National Banks In The Commercial Real Estate Market: Alarm Over The Occ's Recent Expansion Of National Bank's Powers May Be Premature, Rick Jackson

North Carolina Banking Institute

No abstract provided.

Bank-Owned Life Insurance: Much More Than Just Janitors Insurance, Joel W. Mann

North Carolina Banking Institute

No abstract provided.

Payday Lending In North Carolina: Now You See It, Now You Don't, Scott A. Hefner

North Carolina Banking Institute

No abstract provided.

Scanning Legislative Efforts: Current Rfid Legislation Suffers From Misguided Fears, Kristina M. Willingham

North Carolina Banking Institute

No abstract provided.

Feeling The Stones: Measuring The Potential Of Deposit Insurance In China Through A Comparative Analysis, Daniel L. Mccullough

North Carolina Banking Institute

No abstract provided.