Banking and Finance Law Commons^™

The Private Mortgage Insurance Industry, The Thrift Industry And The Secondary Mortgage Market: Their Interrelationships, Diana G. Browne

Akron Law Review

On the other hand, the existence of the private mortgage insurance industry has facilitated the expansion of the thrift industry and of the secondary mortgage market. Twenty-two years after the formation of the first modern private mortgage insurance company and nine years after the creation of the federally sponsored market in conventional mortgage loans, the growth and success of the three industries can be seen as significantly interrelated.

The Road To Precautionary Review Of Financial Products, Hilary Allen

Scholarly Articles in Law Reviews & Journals

Financial innovation introduces new and complex products into the financial system, providing market participants with more bespoke ways to manage their risk, return and liquidity. However, by increasing the complexity of the financial system, financial innovation also compromises financial stability. Faced with the rapid pace of financial innovation, regulators have two options. One is to seek to meet the complexity of the industry with complex regulation, in an arms race that under-resourced regulators are bound to lose. The less explored (and more controversial) path is for regulators to try to reduce the complexity of the financial system by limiting financial …

Racial Credit Steering As A Discriminatory Credit Practice Under The Equal Credit Opportunity Act, Warren L. Dennis, Charles G. Field

Akron Law Review

This article will explore the possible application of the Equal Credit Opportunity Act with its multiple remedies and enforcement methods to racial credit steering practices as described above.

Stock Conversions Under The Amended Regulations, Charles E. Allen

Akron Law Review

The conversion regulations continue to contain various provisions designed to protect the converted association from a hostile takeover both during and after conversion. The entire conversion process is carefully regulated and monitored by the FSLIC to assure fairness and equitability and to avoid "windfall" profits by any group. There is, nonetheless, some controversy surrounding conversions, a discussion of which appears later in this article.

Savings And Loan Service Corporations: Regulations In Ohio, Ronald E. Alexander

Akron Law Review

The purpose of this article is to examine Ohio's scheme for regulating service corporations. This examination includes the history of service corporation regulation in Ohio, the scope of permissible business activities of these corporations, investment limitations for parent savings associations and the supervisory authority of the Ohio Division of Building and Loan Associations [Division]. Perhaps this article will also provide a useful vehicle for judging whether the risks perceived by the GAO and FHLBB can arise from a single state's regulatory scheme for service corporations. It must be remembered that any such risks inherent in Ohio's scheme threaten not only …

The Development Of Credit Co-Operatives Within The State Of Victoria, Australia, Peter Gilchrist Lumb, Kevin John Thompson

Akron Law Review

This article is intended to be of an informative rather than academic nature. As the reader will appreciate the co-operative movement in Victoria is still in its infancy and in consequence there has been little case law development in Victoria or throughout Australia.

The Depository Institutions Deregulation And Monetary Control Act Of 1980

Akron Law Review

This issue of the Akron Law Review is devoted to legal questions relating to the savings and loan industry. This particular project consists of an in-depth examination of the very important piece of legislation named in the title above. Although many of the provisions contained therein directly impact upon savings and loans, the authors have not limited themselves to that aspect, but have also addressed issues relating to all types of depository institutions. A general discussion of interest regulation is given first. This is followed by a title by title, section by section analysis of the major provisions of this …

Nationwide Now Accounts: Current Legal Issues, Supervisory Update, Thomas A. Pfeiler

Akron Law Review

Consequently, in the race for market shares, different institutions are offering NOW accounts upon a wide variety of terms and conditions. A number of legal questions have arisen as a result of these circumstances. It is the purpose of this article to consider and, perhaps, answer some of these questions. Where there is no definitive answer, suggestions as to an analytical or practical approach will be offered. In addition, the significance of various provisions of the implementing regulations will be considered.

Savings Associations And The New Depository Institutions Deregulation And Monetary Control Act, Robert W. Bartlett

Akron Law Review

The following is intended to be a general overview of the major provisions of the Depository Institutions Deregulation and Monetary Control Act insofar as they affect savings associations.

Developments In Ohio Savings And Loan Law: 1980, Ronald E. Alexander

Akron Law Review

This 1981 edition of the Akron Law Review has continued to fulfill the objectives of that first editorial board in 1978: to both provide a forum for professional and student work that explores the legal regimes which impact upon savings associations and to make a continuing contribution to the body of savings and loan law literature that is surely needed by the practicing attorneys who serve as counsel for savings associations.

A Fresh Look At The Equal Credit Opportunity Act, Gail R. Reizenstein

Akron Law Review

The subsequent material will illustrate that despite the fact that women have been required to meet both a different and a higher standard for them to be deemed creditworthy, studies have shown that they (especially single women) are in fact better credit risks than men. Nevertheless, in an investigation of special problems concerning the availability of credit, the National Commission on Consumer Finance identified difficulties that women in particular faced in obtaining consumer, as well as mortgage, credit.

Creditor's Rights In Ohio: An Extensive Revision, Peggy M. Coleman, Warren R. Ross, John P. Finan

Akron Law Review

House Bill No. 254, effective August 26, 1982, involves a balancing of competing interests as well as an attempt to bring Ohio law into compliance with the procedural requirements mandated, on Constitutional grounds, by various U.S. Supreme Court cases. It involves a cost-benefit analysis because, in making decisions in this area, one must balance the costs associated with procedural requirements against the benefits afforded to consumers. The costs involved are costs to consumers, as there is little doubt that any costs associated with the procedural requirements in effect since August 26, 1982, will be borne by consumers. To be sure, …

An Introductory Examination Of The Racketeer Influenced And Corrupt Organizations Act,, David E. Morris

Akron Law Review

This comment will attempt to serve as an introduction to RICO, addressed to those with little or no knowledge of either its provisions and intricacies, or its potential usefulness and adaptability as a prosecution tool. The recent criticism of RICO by the American Bar Association will also be reviewed, as well as the ABA's proposed amendments to RICO. Finally, the state RICO statutes will be discussed. The advantages they offer states currently without any substantive laws dealing directly and primarily with organized and white-collar crime will be examined.

Savings And Loan Insolvency In The 80'S

Akron Law Review

This project is divided into five parts. Part I examines the federal statutory scheme for the supervision of federally-chartered savings and loans. The provisions of 12 U.S.C. § 1464 are examined closely to determine the extent of the power of the Federal Home Loan Bank Board to appoint a receiver. The due process implications of this process are examined in light of the United States Supreme Court's opinion in Fahey v. Mallonee. Finally, the question of the scope of judicial review of the Board's decision is examined. Whether the association is entitled to a review de novo is a question …

I.R.C. §(A)(3)(D): Reorganizing An Insolvent Savings And Loan Association, Brenda D. Crocker, Michael L. Unti

Akron Law Review

Whether or not the new reorganization provision, section 368(a)(3) (D), succeeds in inducing the acquisition of insolvent savings and loan associations, it is likely to be viewed as a creative attempt at a solution. To best illustrate the novelty of Congress's approach, the ensuing sections begin with an explanation of federal tax law as it has evolved in the context of insolvency reorganizations.

Savings And Loan Associations - Mutual To Stock Conversions Under The Revised Regulations, Peter B. Saba, Robert B. Robbins

Akron Law Review

The new rules provide for four types of conversions: (1) standard conversions; (2) sale-of-control conversions; (3) voluntary supervisory conversions; and (4) modified conversions. In a standard conversion, association members receive, without payment, nontransferable subscription rights to purchase shares on a preemptive basis according to the categories of eligibility and in amounts set in the regulations. Any shares of the converting institution not sold to persons with subscription rights must be sold in an underwritten public offering or in a direct community offering. A sale-of-control conversion allows association members to vote to sell a controlling stock interest in the institution to …

Dickman And Code Section 7872: The Death Knell To Interest-Free And Below-Market Loans, Beverly Mcdonel

Akron Law Review

This comment will discuss the history of interest-free and below-market rate loans, including recent changes in the law from Dickman and the Internal Revenue Code (Code) revision in 1984. In addition, some of the tax planning alternatives to interest-free loans will be briefly examined.

Nonbank Banks: A Bank Is Always A Bank Unless Of Course It Is A Nonbank Bank: Board Of Governors V. Dimension Financial Corporation, Joseph Reece

Akron Law Review

Board of Governors v. Dimension Financial Corporation is of major significance because it is the first Supreme Court case addressing the issue of whether "nonbank banks" should be regulated under the Bank Holding Company Act of 1956 (BHCA). In rendering the Dimension Financial decision, the Supreme Court may have taken a major step in diffusing the controversy between financial institutions, the Federal Reserve Board, and Congress by determining when a bank is a "bank" for purposes of regulation under the BHCA.

In analyzing the issue before it, the Dimension Court reviewed applicable statutes, relevant case law, and legislative history and …

Section 542(C) Of The Bankruptcy Reform Act Of 1978 And Section 4-303 Of The Ucc: A Less Than Perfect Fit?, John P. Finan

Akron Law Review

The Uniform Commercial Code (UCC) 4-303 addresses two areas where the UCC and the Bankruptcy Code intersect. The first relates to the vulnerability of drawee banks that honor checks after their customer has taken bankruptcy (has filed a voluntary petition or is the defendant in an involuntary case); the second relates to the timing of transfers made by check under 547 of the Bankruptcy Code (the preference section). In both areas there is a less than perfect fit between the Bankruptcy Code and UCC 4-303. The first area poses problems for practitioners whose clients have received notice of bankruptcy in …

Challenges Under Truth In Lending: Suing For Rescission, Giving Clear And Conspicuous Notice, And Electing Not To Rescind, Elwin Griffith

Akron Law Review

This Article reveals that the uniformity sought by Congress through TILA has challenged the courts to clarify the relationship between a notice of rescission and a suit for rescission, the relevance of the consumer’s ability to tender the loan principal, and the difficulty of recognizing a creditor’s attempt to accommodate a consumer’s premature election not to cancel a transaction.

Loan Workouts, Superfund, And Lender Liability: De Minimis Settlements - The "Magic Bullet"?, Timothy J. Szuhaj

Akron Law Review

This article will focus on whether there is a practical solution for reconciling this clash between creditors' rights and environmental liability. In an effort to provide a tangible basis for critical analysis, the following hypothetical situation will be employed throughout this article. This hypothetical is intended to demonstrate a generic two party loan situation. Although this model may be an oversimplification, its basic assumptions adequately provide the basis for analysis.

A.E. Staley Maunufacturing Co. V. Commissioner: Life After Indopco: Tax Treatment Of A Target Corporation's Unsuccessful Hostile Tender Offer Defense Fees, Corinne E. Anderson

Akron Law Review

One specific concern was whether the INDOPCO decision represented a per se rule that takeover-related expenses must always be capitalized. The recent Seventh Circuit decision of A.E. Staley Manufacturing Co. v. Commissioner appears to have answered this question in the negative. In Staley, the Court of Appeals held that the majority of investment banker fees paid in an unsuccessful attempt to defeat a hostile tender offer were deductible as "ordinary and necessary" business expenses. Alternatively, those expenses allocable to the company's unsuccessful efforts to engage in alternate transactions were deductible as "abandoned transactions. ' However, fees paid by Staley to …

Buckley V. Valeo, Political Disclosure And The First Amendment, Trevor Potter

Akron Law Review

Put differently, the reality is that disclosure’s constitutional status is unclear. The Supreme Court’s jurisprudential framework is often unpredictable. Even when the Court has been consistent in choosing a formal framework with which to approach disclosure laws, it has been inconsistent and unpredictable in applying that framework. To be sure, this issue takes on particular urgency in light of the importance both sides in the campaign finance debate attach to disclosure of campaign spending (however differently defined), and the existence of the Internet as a vehicle for immediate mass dissemination of information required to be reported. Accordingly, providing an overview …

Challenging Buckley V. Valeo: A Legal Strategy, John C. Bonifaz, Gregory G. Luke, Brenda Wright

Akron Law Review

In its 1976 ruling in Buckley v. Valeo, the United States Supreme Court sanctioned a system of unlimited campaign spending in federal elections. Since that ruling, this nation has witnessed an explosion of political expenditures. The 1996 election cycle marked the most expensive election in U.S. history, with congressional and presidential candidates spending a total of more than $2 billion. Campaign spending has also dramatically risen in state and local elections across the country. Unlimited spending poses a serious threat to our democratic process. It undermines public confidence in our elections and in our democratic institutions. It presents an increased …

Summary Of C. Nicholas Pereos, Ltd. V. Bank Of America, N.A., 131 Nev. Adv. Op. 61553 (July 2, 2015), Stacy Newman

Nevada Supreme Court Summaries

The Court considers an appeal from a district court summary judgment in a tort case concerning losses sustained due to unauthorized activity in a customer’s bank account. The Court reversed the grant of summary judgment because genuine issues of material fact exist regarding whether respondent Bank of America acted reasonably in delivering bank statements, and also because the appellant’s suit was not time barred under a one year period of repose.

The Role Of Central Banks In Global Austerity, Timothy A. Canova

Indiana Journal of Global Legal Studies

The literature on austerity, by scholars and policymakers alike, has largely downplayed the important role of central banks in designing and implementing global austerity both before and since the 2008 financial crisis. This article considers how and why the world's leading central banks display an inherent bias toward austerity. As central banks have become increasingly influenced and even captured by large private banks and financial institutions, they have pursued policy agendas that favor those same private interests. The structure of the U.S. Federal Reserve suggests a central bank that has been captured by design and is rife with inherent conflicts …

Custodial Collies Of Transparency-The Competitive Advantage Of Protecting Investing Lamm[Bs] From Advising Wolves: Lamm V. State Street Bank & Trust, Steven L. Jones

Mercer Law Review

Unscrupulous investment advisers who defraud their unsuspecting clients are increasingly prevalent in our society. Consequently, investors must be increasingly vigilant to protect themselves from such individuals. A custodial bank is one way investors can prevent mismanagement and misuse of funds and securities they entrust to financial advisers. However, the United States Court of Appeals for the Eleventh Circuit opinion Lamm v. State Street Bank & Trust illustrates that the mere presence of a custodial bank does not adequately insulate investors from fraudulent adviser activity. Under current Securities and Exchange Commission (SEC) regulations, specifically 17 Code of Federal Regulations (C.F.R.) Section …

Recursive Collective Actions Problems: The Structure Of Procyclicality In Financial And Monetary Markets, Macroeconomies And Formally Similar Contexts, Robert C. Hockett

Cornell Law Faculty Publications

The hallmark of a collective action problem is its aggregating multiple individually rational decisions into a collectively irrational outcome. Arms races, “commons tragedies” and “prisoners’ dilemmas” are well-known, indeed well-worn examples. What seem to be less widely appreciated are two complementary propositions: first, that some collective action problems bear iterative, self-exacerbating structures that render them particularly destructive; and second, that some of the most formidable challenges faced by economies, societies, and polities are iteratively self-worsening problems of precisely this sort. Financial markets, monetary systems and macroeconomies in particular are rife with them – as are other complex systems subject to …

Finding A Financial Planner, Emily G. Brown Jd

Pension Action Center Publications

This fact sheet provides information on how to find the right financial planner to help you meet your retirement planning goals. This fact sheet suggests things to consider prior to picking a financial planner and answers questions like:

• What do financial planners do?
• How do you know if you need a financial planner?
• How do you find the right financial planner?
• What type of professional title does a financial planner have?

Franchisees In A Fringe Banking World: Striking The Balance Between Entrepreneurial Autonomy And Consumer Protection, Robert W. Emerson

Akron Law Review

This Article considers fringe banking issues—the gaps or problems in service for both individuals and businesses when the usual banking channels are impractical or even unavailable. Some people may only have recourse to the robust, but often very expensive and less protected, financial products sold for what is, or is supposed to be, a very shortterm basis. The Article first examines the fringe banking world, but ultimately considers whether and how consumer protections are needed for franchisees. Small businesses, including franchisees, are often the forgotten players in the fringe economy. If a franchise actually engages in selling fringe banking products, …