Banking and Finance Law Commons^™

Lien-Stripping In The Absence Of A Discharge: Bankruptcy's Answer To The Destruction Caused By Excessive Home Equity Extraction, 46 J. Marshall L. Rev. 915 (2013), Gregory Guest

UIC Law Review

No abstract provided.

Behavioral Economics And Investor Protection: Keynote Address, Daniel Kahneman

Loyola University Chicago Law Journal

No abstract provided.

Building On Kahneman's Insights In The Development Of Behavioral Finance, Hersh Shefrin

Loyola University Chicago Law Journal

No abstract provided.

Behavioral Economics Applied: Loss Causation, Robert A. Prentice

Loyola University Chicago Law Journal

Current securities fraud doctrine applying section 10(b) and Rule 10b-5 set a high bar for civil damages plaintiffs who must plead and prove both loss causation and transaction causation in order to prevail. Such a strict standard is not demanded by the law, given that the purpose of the Securities Act of 1933 and Securities Exchange Act of 1934 was to provide more protection for investors than had the common law of fraud. Nonetheless, the courts, especially the Supreme Court in Dura Pharmaceuticals v. Broudo, have chosen to impose this additional requirement.

This Article examines the behavioral psychology literature, …

The Modern Corporation Magnified: Managerial Accountability In Financial Services Holding Companies, Anita K. Krug

Articles

This Article's goal is to revisit early and thoughtful commentary on the fundamental problem of the large corporate enterprise--managerial accountability to shareholders-- to show that this fundamental problem is dramatically pronounced--magnified, if you will--in the types of enterprises that were at the center of the financial crisis, whether too big to fail or not. In particular, The Modern Corporation articulated that the evolution of economic organization has separated the beneficial ownership of property from those who control it and that this disjunction has created an irresolvable tension between shareholders and management. Nowhere is that tension more pronounced than in the …

Governance Of Global Mobile Money Networks: The Role Of Technical Standards In Mobile Money In Developing Countries, Jane K. Winn

Articles

Mobile money has the potential to be an effective policy instrument for financial inclusion in developing countries, but it also has the potential to fuel money laundering and terrorist financing. The 2012 revised Financial Action Task Force standards attempt to strike a workable balance between the goals of financial inclusion and financial integrity in developing countries. Mobile money schemes are mostly based in national markets, however, and are not normally designed to address the need of poor migrants for cheap, effective cross-border remittance services.

Demand for such cross-border remittance services may drive the development of technical standards to build global …

Introduction To Mobile Money In Developing Countries: Financial Inclusion And Financial Integrity Conference Special Issue, Jane K. Winn, Louis De Koker

Articles

This special issue of the Washington Journal of Law, Technology & Arts contains papers contributed to a conference held at the University of Washington School of Law on April 20, 2012. The conference, entitled Mobile Money in Developing Countries: Financial Inclusion and Financial Integrity, was organized by the University of Washington School of Law with the support of the Linden Rhoads Dean’s Innovation Fund, Deakin University School of Law, Australia, and the United Nations Commission on International Trade Law (UNCITRAL).

The conference provided an early opportunity to analyze the impact of the newly-released revised 2012 Financial Action Task Force (FATF) …

Teaching Business Law In The New Economy; Strategies For Success, Kamille Wolff Dean

Journal of Business & Technology Law

No abstract provided.

Janus Capital Group, Inc. V. First Derivative Traders: Further Limited Liability, And Missing An Opportunity To Curb Corporate Misconduct, Zachary K. Ostro

Journal of Business & Technology Law

No abstract provided.

Agency Capitalism: Further Implications Of Equity Intermediation, Ronald J. Gilson, Jeffrey N. Gordon

Faculty Scholarship

This chapter continues our examination of the corporate law and governance implications of the fundamental shift in ownership structure of U.S. public corporations from the Berle-Means pattern of widely distributed shareholders to one of Agency Capitalism – the reconcentration of ownership in intermediary institutional investors as record holders for their beneficial owners. A Berle-Means ownership distribution provided the foundation for the agency cost orientation of modern corporate law and governance – the goal was to bridge the gap between the interests of managers and shareholders that dispersed shareholders could not do for themselves. The equity intermediation of the last 30 …

Globalizing Social Finance: How Social Impact Bonds And Social Impact Performance Guarantees Can Scale Development, Deborah Burand

Articles

While the SIB structure is still in its infancy, there is momentum building to globalize this social finance innovation so that it can help scale development goals around the world. Taking the SIB global is not a simple matter, however. This article explores several of the more challenging issues that are likely to arise in applying a SIB or elements of the SIB structure to social problems and development goals in developing countries. The article begins with a summary review of the goals and structures used in the two earliest SIBs. It then discusses key challenges and opportunities that SIBs …

Assessing Transnational Private Regulation Of The Otc Derivatives Market: Isda, The Bba, And The Future Of Financial Reform, Gabriel Rauterberg, Andrew Verstein

Faculty Scholarship

For the last twenty years, the dominant narrative of the over-the-counter derivatives market has been one of absent regulation, deregulation, and regulatory conflict, predictably resulting in disaster. This Article challenges this narrative, arguing that the global derivatives market has been subject to pervasive and harmonized regulation by what should be recognized as transnational private regulators. Recognizing the reality of widespread transnational private regulation of derivatives has significant implications, which this Article explores. Appreciating the actual regulatory status quo is essential if policymakers are to correctly diagnose problems, avoid past regulatory errors, and plan effective remedies. There are also advantages to …

Bank Recapitalizations: A Comparative Perspective, Da Lin

Law Faculty Publications

We have been here before. No matter how different the latest financial frenzy or crisis always appears, there are usually remarkable similarities with past experience from other countries and from history.

Legislation With Endogenous Preferences, Aviad Heifetz, Ella Segev, Eric L. Talley

Faculty Scholarship

It has long been recognized that individuals' preferences adapt to the social, economic and legal environment in which they take part, in addition to reacting to incentives and constraints given these preferences. Therefore, the design of such incentives via legislation or regulation should better take into account also its own effect on preferences, in order to avoid endogenous preference adaptation curtailing the designer's aims. Furthermore, the endogeneity of preferences poses a dilemma to the social planner whether to maximize welfare having in mind the original preferences of individuals, or rather the preferences that emerge endogenously with the intervention mechanism. This …

Spoiled Broth? Section 895 Of The Oklahoma Economic Development Pooled Finances Act Bounces Between Committees And Co-Opts Terms To Defend Your New Back Yard, Brandon Davis Kemp

Oklahoma Law Review

No abstract provided.

Fee Effects, Kathryn Judge

Faculty Scholarship

Intermediaries are a pervasive feature of modern economies. This article draws attention to an under-theorized cost arising from the use of specialized intermediaries – a systematic shift in the mix of transactions consummated. The interests of intermediaries are imperfectly aligned with the parties to a transaction. Intermediaries seek to maximize their fees, a transaction cost from the perspective of the parties. Numerous factors, including the requirement that a transaction create value in excess of the associated fees to proceed and an intermediary’s interest in maintaining a good reputation, constrain an intermediary’s tendency to use its influence in a self-serving manner. …

Economics Of Bankruptcy – Introduction, Edward R. Morrison

Faculty Scholarship

This essay surveys important contributions to the economics of bankruptcy. It is an introductory chapter for a forthcoming volume (from Edward Elgar Press) that compiles the work of legal scholars as well as economists working in the field of corporate finance. The essay begins with the foundational theories of Baird, Jackson, and Rea and then collects scholarly work extending, testing, or revising those theories. At various points I identify questions that merit further study, particularly empirical testing.

Africa-China Bilateral Investment Treaties: A Critique, Uche Ewelukwa Ofodile

Michigan Journal of International Law

The purpose of this Article is to draw attention to, raise questions about, and generate discussions regarding the emerging norms, legal context, and long-term development-implications of South-South foreign direct investment (“FDI”) and South-South bilateral investment treaties (“BIT”). This Article seeks to refocus the discourse about FDI and BITs on developing countries in their role as exporters of capital and in the context of the much-touted new geography of investment. Can South-South BITs play a positive role in promoting development in sub-Saharan Africa any more than the Africa-North BITs? Is China concluding development-focused BITs with countries in Africa? The Article identifies …

Let's Talk About Tax, Hilary Allen

Scholarly Articles in Law Reviews & Journals

No abstract provided.

Improving The Lives Of Individuals In Financial Distress Using A Randomized Control Trial: A Research And Clinical Approach, Lois R. Lupica, Dalie´ Jimenez, D. James Greiner, Rebecca L. Sandefur

Faculty Publications

This Article describes an ambitious Randomized Control Trial (RCT) in the area of consumer debt collection. Randomized trials are the same kind of evaluation that the law requires (or at least strongly encourages) before new drugs and medical devices may be sold to the public. Although they have not yet gained widespread popularity in the evaluation of legal systems, randomized trials are uniquely effective ways of assessing whether any benefits observed after implementation of legal or educational assistance programs are really due to those programs as compared to other factors, such as unusual levels of competence or motivation of program …

A Good Name: Applying Regulatory Takings Analysis To Reputational Damage Caused By Criminal History, Jamila Jefferson-Jones

Law Faculty Research Publications

No abstract provided.

Behavioral Science And Scienter In Class Action Securities Fraud Litigation, Ann Morales Olazábal

Loyola University Chicago Law Journal

No abstract provided.

Rewiring The Dna Of Securities Fraud Litigation: Amgen'S Missed Opportunity, Geoffrey Rapp

Loyola University Chicago Law Journal

No abstract provided.

Behavioral Economics And Investor Protection: Reasonable Investors, Efficient Markets, Barbara Black

Loyola University Chicago Law Journal

No abstract provided.

A New Philosophy For Financial Stability Regulation, Hilary J. Allen

Loyola University Chicago Law Journal

The financial crisis of 2007–2008 revealed many inadequacies in the pre-crisis approach to financial stability regulation. In the United States, Congress responded by enacting the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Act calls for government agencies to make numerous rules regulating activities that have the potential to harm financial stability, but there has been no real effort to rethink how these rules should be assessed. The cost-benefit analysis standard used to evaluate financial stability regulation prior to the crisis persists today, and both the courts and Congress have sought to further entrench that standard. However, cost-benefit analysis …

Harmonizing European Union Bank Resolution: Central Clearing Of Otc Derivative Contracts Maintaining The Status Quo Of Safe Harbors, Christoph Henkel

Journal Articles

This Article argues that safe harbors for financial contracts should not be expanded in Europe, but instead should be repealed, as suggested by some commentators in the United States. At the very minimum, credit derivatives, swaps, and repurchasing agreements should be subject to a stay, and the resolution authorities in the Member States should have the power to assume beneficial contracts and to reject other unfavorable contracts. Also, the power of resolution authorities to transfer derivative positions in full or in part should not be sanctioned in favor of a full transfer. Rather, resolution authorities should have the power to …

How Tax Increment Financing (Tif) Districts Correlate With Taxable Properties, Randall K. Johnson

Faculty Works

This article deals with Tax Increment Financing (TIF), which is a popular economic development tool. TIF borrows against future tax revenues to subsidize current development projects. In Illinois, this economic development tool is justified by its promise to expand the local tax base: by increasing tax revenues, increasing the number of tax payers or increasing the number of taxable properties in the area. However, it is not clear that TIF delivers on its promise. A new dataset, which is introduced in this article, helps to clarify the issue. It does so by providing information about the number of TIF Districts …

The New Investor, Tom C. W. Lin

UF Law Faculty Publications

A sea change is happening in finance. Machines appear to be on the rise and humans on the decline. Human endeavors have become unmanned endeavors. Human thought and human deliberation have been replaced by computerized analysis and mathematical models. Technological advances have made finance faster, larger, more global, more interconnected, and less human. Modern finance is becoming an industry in which the main players are no longer entirely human. Instead, the key players are now cyborgs: part machine, part human. Modern finance is transforming into what this Article calls cyborg finance.

This Article offers one of the first broad, descriptive, …

Consumer Financial Protection And Community Banks, John T. Adams

University of Arkansas at Little Rock Law Review

The Dodd-Frank Act (Dodd-Frank) was enacted following the 2007-2008 financial crisis as the result of calls in Washington to protect average Americans from the depredations of Wall Street. Specifically, proponents of Dodd-Frank pointed to greed, carried out through the business practices at large commercial and investment banks, as the cause of the financial crisis. Accordingly, Dodd-Frank sought to place the most stringent restrictions on the activities of large commercial and investment banks of any legislation since the Great Depression.

However, the perception of rapacious business practices on Wall Street does not apply as directly to community banks. Situated somewhere between …

Going Beyond The Four Corners: Reflections On Teaching Letters Of Credit As A Subset Of International Banking Law, James E. Byrne

American University Business Law Review

No abstract provided.