Banking and Finance Law Commons^™

The Rise Of Customary Businesses In International Financial Markets: An Introduction To Islamic Finance And The Challenges Of International Integration, Ali Adnan Ibrahim

American University International Law Review

No abstract provided.

Reflections On The Securities Law Of Jordan , Bashar H. Malkawi, Haitham A. Haloush

American University International Law Review

No abstract provided.

Separating The Good From The Bad: Developments In Islamic Acquisition Financing , Umar F. Moghul

American University International Law Review

No abstract provided.

The Rise Of Customary Businesses In International Financial Markets: An Introduction To Islamic Finance And The Challenges Of International Integration, Ali Adnan Ibrahim

American University International Law Review

No abstract provided.

Ethical Money: Financial Growth In The Muslim World , Bjorn Sorenson

American University International Law Review

No abstract provided.

Fannie Mae And Freddie Mac: Implications For Credit Unions, David J. Reiss

Cornell Law Faculty Publications

This research brief provides an overview of the role of Fannie Mae and Freddie Mac in the housing finance market and provides a framework in which reform options for the two companies can be evaluated. These options include a return to the pre-crisis status quo; a move to redirect Fannie and Freddie income to affordable housing goals; nationalization; and privatization. The research brief evaluates a number of concrete reform proposals through the lens of these four options, including those of Credit Suisse, the Mortgage Bankers Association, the Housing Policy Council of the Financial Services Roundtable, the Center for American Progress …

Creditors And Debt Governance, Charles K. Whitehead

Cornell Law Faculty Working Papers

This chapter from the book Research Handbook on the Economics of Corporate Law (Claire Hill & Brett McDonnell, eds.), provides an introduction to the law and economic theory relating to creditors and debt governance.

The chapter begins with a look at the traditional role of debt, focusing on the impact of debt on corporate governance and, in particular, the effect of an illiquid credit market on creditors’ reliance on covenants and monitoring. It then turns to changes in the private credit market and their effect on lending structure. Greater liquidity raises its own set of agency costs. In response, loans …

Vat Fraud: The Tradable Services Problem, Richard Thompson Ainsworth

Faculty Scholarship

Tradable services – VoIP termination services, mobile minutes, software as a service (SaaS), or almost any service bought or sold in the “cloud” – are a distinct class of taxable supplies. These service-based supplies both resemble and differ fundamentally from goods. They also differ from services that are consumed-on-purchase (consumed services).

Tradable services are designed from the beginning for re-sale. They are hybrid supplies that behave commercially like goods, but have functional attributes that make them hard to distinguish from services generally. When determining the place of supply/ place of taxation for these kinds of supplies, their hybrid character presents …

Credit Default Swaps And Clearing, Nazanin Baseri

Legislation and Policy Brief

In an article from 2000, an investigative journalist from The Banker warned against the hidden dangers of credit default swaps (CDS). Although CDSs can be a useful financial instrument for the banking industry, the article warned of the anonymity of credit derivatives, lack of transparency, and the potential for disaster. In an unfortunately accurate conclusion, the journalist opined that a crisis might occur because banks may not put in place the proper risk control systems in time to avert a disaster. Fast forward eight years and the financial meltdown of 2008 developed into one of the largest economic disasters in …

Black Swans And Black Elephants In Plain Sight: An Empirical Review Of Central Bank Independence, Timothy A. Canova

Faculty Scholarship

No abstract provided.

The Sovereign Debtor's Prison: Analysis Of The Argentine Crisis Arbitrations And The Implications For Investment Treaty Law, Robert M. Ziff

Richmond Journal of Global Law & Business

Over the last six years, several arbitration panels have released opinions in a series of disputes raised by investors against Argentina. In each case, foreign investors claim that Argentina's use of price controls and currency devaluation following the 2002 economic crisis constituted a violation of bilateral investment treaty obligations. Despite the fact that most claimants make identical allegations, many of these decisions are highly contradictory. In some cases Argentina is absolved of liability, while in others Argentina is held liable for hundreds of millions in damages. In aggregate, the claimants seek enough money to bankrupt the Argentine Republic.

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 …

International Comparisons Of Bank Regulation, Liberalization, And Banking Crises, Puspa Amri, Apanard P. Angkinand, Clas Wihlborg

Business Faculty Articles and Research

Purpose: The recurrence of banking crises throughout the 1980s and 1990s, and in the more recent 2008-09 global financial crisis, has led to an expanding empirical literature on crisis explanation and prediction. This paper provides an analytical review of proxies for and important determinants of banking crises − credit growth, financial liberalization, bank regulation and supervision.

Design/Methodology/Approach: The study surveys the banking crisis literature by comparing proxies for and measures of banking crises and policy-related variables in the literature. Advantages and disadvantages of different proxies are discussed.

Findings: Disagreements about determinants of banking crises are in part …

After Lehman: International Response To Financial Disputes - A Focus On Hong Kong, Shahla F. Ali, John Koon Wang Kwok

Richmond Journal of Global Law & Business

No abstract provided.

Local To Global: Rethinking Spheres Of Authority After A World Financial Crisis: An Introduction, Franklin A. Gevurtz

Global Business & Development Law Journal

No abstract provided.

Regulating For The Next Financial Crisis, Charles K. Whitehead

Global Business & Development Law Journal

No abstract provided.

Reparations, Microfinance, And Gender: A Plan, With Strategies For Implementation, Anita Bernstein, Hans D. Siebel

Faculty Scholarship

No abstract provided.

Turnabout Is Fair Play: The U.S. Response To Mexico’S Request For Bank Account Information, Kevin Presian

Global Business Law Review

This Note argues that the United States needs to come to a compromise with Mexico over Mexico’s request for information concerning interest paid by U.S. banks to residents of Mexico. The United States could ignore Mexico’s request, but that may create animosity between the two nations. Alternatively, the United States could fully comply with Mexico’s request; however, that may lead to strong opposition from the banking sector. It is in the best interest of the United States to model its compromise on the recent compromise between the United States and Switzerland. While there are issues with this compromise that would …

Card Act's Ability To Pay Proposal Ignites Public Policy Debate, Manley Williams, Sara E. Emley

American University Law Review

No abstract provided.

Financial Reform And The Causes Of The Financial Crisis, Brooksley Born

American University Business Law Review

No abstract provided.

Of The Conditional Fee As A Response To Lawyers, Bankers And Loopholes, Claire Hill, Richard Painter

American University Business Law Review

No abstract provided.

Risk Management, Responsive Regulation, And Oversight Of Structured Financial Product Markets, Janis P. Sarra

All Faculty Publications

Globally, regulators, supervisory authorities, and governments are grappling with what have now been identified as systemic risk factors that contributed to the recent global financial crisis. Internationally, the Basel Committee on Banking Supervision and other organizations are developing standards to identify and address systemic risk, suggesting that the extent of regulation or exemption from it can serve as a mechanism by which risk is transferred within the financial system. The Cross-border Bank Resolution Group of the Basel Committee has developed ten recommendations as a result of its stocktaking of lessons learned from the financial crisis.' The Financial Stability Board (FSB), …

The International Anti-Money Laundering And Combating The Financing Of Terrorism Regulatory Strategy: A Critical Analysis Of Compliance Determinants In International Law, Navin Beekarry

Northwestern Journal of International Law & Business

Concerns about the risks money laundering (ML) and terrorist financing (TF) present to the stability of the international financial system have resurfaced in the context of the liquidity problems faced by financial institutions as a result of the recent credit crisis (2008). Because ML and TF evolve with new criminal activities and methodologies, ML and TF present systemic threats to the stability of the financial system. Addressing new developments in ML/TF and their associated risks requires a sufficiently flexible and adaptable international regulatory strategy. In this paper, I examine the international anti-money laundering and combating the financing of terrorism (AML/CFT) …

Solving Global Financial Imbalances: A Plan For A World Financial Authority, Carlos Mauricio S. Mirandola

Northwestern Journal of International Law & Business

This paper will propose a plan to reform international finance—the World Financial Authority (WFA) Plan. Under such a plan, the IMF and other existing international financial institutions would be reformed and coordinated around a newly created WFA. The WFA would have two core functions. The first function would be to manage international liquidity, thus reducing externalities arising from domestic monetary policies adopted by its members, and addressing global liquidity problems involving financial activities of transnational private banks. The second function would be to help countries make their domestic monetary policies more effective, thus regaining traction and preventing contagion. A central …

The Revolving Door Of Emigration: The Economic Influences Of Remittances In Developing Countries, Laura L. Norris

Northwestern Journal of International Law & Business

Economic incentives play an integral role in many individuals' choices to leave their country of origin. While a person may independently make the decision to migrate, some governments have developed extensive programs to promote the export of workers. Developing nations often initiate such programs for the purpose of acquiring additional sources of foreign exchange and external financing, as emigrants in transnational families can play a critical role in development through remittances. Remittances to developing countries totaled $325 billion in 2010, and they will likely continue to increase along with emigration. The following Comment considers the palpable contribution remittances have on …

The Future Of Hedge Fund Regulation: A Comparative Approach: United States, United Kingdom, France, Italy, And Germany, Anne Riviere

Richmond Journal of Global Law & Business

No abstract provided.

From The Schoolhouse To The Poorhouse: The Credit Card Act's Failure To Adequately Protect Young Consumers, Eboni S. Nelson

Faculty Publications

No abstract provided.

Review Of Seeds Of Destruction: Why The Path To Economic Ruin Runs Through Washington, And How To Reclaim American Prosperity, Michael S. Barr

Reviews

The United States has just gone through the worst financial crisis since the Great Depression. Our financial system came to brink of collapse, saved only by a massive intervention by the federal government. Although officially the Great Recession is now over, high unemployment and slow growth persist. Deficits that were ballooning in the 2000s with the weight of tax cuts, increased health care expenditures, and defense spending related to Iraq and Afghanistan, even before the financial crisis, have continued to climb, as lower tax receipts, automatic stabilizers, and fiscal stimulus kicked into gear.

Chapman Dialogue And Law Review Symposium Keynote Address: Ex Ante Versus Ex Post Approaches To Financial Regulation, Steven L. Schwarcz

Faculty Scholarship

Ideal financial regulation would work ex ante, to prevent financial failures. Once a failure occurs, there may already be economic damage, and it may be difficult to stop the failure from spreading and becoming systemic. The reality, though, is that preventing financial failures should be only one role for regulators. Even an optimal prophylactic regulatory regime cannot anticipate and prevent every failure. This paper, which formed my Chapman Dialogue Address at Chapman University School of Law and the keynote speech at Chapman Law Review’s 2011 Symposium on the Future of Financial Regulation, attempts to contrast fundamental differences between ex ante …

Capture In Financial Regulation: Can We Redirect It Toward The Common Good?, Lawrence G. Baxter

Faculty Scholarship

“Regulatory capture” is central to regulatory analysis yet is a troublesome concept. It is difficult to prove and sometimes seems refuted by outcomes unfavorable to powerful interests. Nevertheless, the process of bank regulation and supervision fosters a closeness between regulator and regulated that would seem to be conducive to “capture” or at least to fostering undue sympathy by regulators for the companies they oversee. The influence of very large financial institutions has also become so great that financial regulation appears to have become excessively distorted in favor of these entities and to the detriment of many other legitimate interests, including …