Banking and Finance Law Commons^™

Foreclosure Diversion And Mediation In The States, Alan M. White

Georgia State University Law Review

The recent mortgage foreclosure crisis, whose economic effects are well known, transformed state legal structures governing the mortgage foreclosure process. What had been a relatively routine system of default judgments and auction sales has evolved into a negotiation and workout practice in which homeowners contest foreclosures, demand loan modifications and short sales, and propose other alternatives to foreclosures.

A profusion of state laws and court orders were adopted between 2008 and 2014 with the aim of promoting negotiated foreclosure alternatives. These laws have produced a variety of experiments in the “laboratories of democracy.” The defaults—whether home loans are renegotiated, defaults …

The Cfpb At Five Years: Beyond The Numbers, Kelly Thompson Cochran

North Carolina Banking Institute

As the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) has passed its five-year anniversary, the Bureau has amassed an impressive set of numbers measuring some of its impacts on consumers and the financial services marketplace. Other accomplishments may get less attention, but have nonetheless created important infrastructure and partnerships to help leverage and magnify the agency’s effectiveness. This article briefly summarizes some of the ways in which the Bureau has evolved in its early years to better fulfill its mission and improve the functioning of consumer financial markets.

Deference Debate And The Role Of Cost-Benefit Analysis In Financial Regulation: Metlife V. Financial Stability Oversight Council, Frederick Matthew Norchi

North Carolina Banking Institute

No abstract provided.

"Fishing" For Trouble?: On The Appropriate Limits Of A Civil Investigative Demand Issues By The Cfpb, E. Sylvester Kisluk

North Carolina Banking Institute

No abstract provided.

Living Wills: How Legal Entity Rationalization Addresses The "Too Big To Fail" Problem, Monica M. Burks

North Carolina Banking Institute

No abstract provided.

A Review And Assessment Of The National Mortgage Settlement By Its Monitor, Joseph A. Smith Jr.

North Carolina Banking Institute

Since April 2012, the author has served as Monitor of the consent judgments commonly known as the National Mortgage Settlement (the “Settlement”). The obligations of the mortgage servicer parties to the first five of such judgments were satisfied in March 2016. Three consent judgments under the Settlement’s structure remain in effect. Although the mortgage servicing settlement process is ongoing, completion of the first five consent judgments is an appropriate vantage point from which to review the Settlement and assess its impact and significance. This article provides such a review and assessment based on the author's work as the Settlement’s Monitor.

Foreword, Brenna A. Sheffield, Lissa L. Broome

North Carolina Banking Institute

No abstract provided.

Is Your Cyber Liability Insurance Any Good? A Guide For Banks To Evaluate Their Cyber Liability Insurance Coverage, Thomas H. Bentz Jr.

North Carolina Banking Institute

Knowing what issues to consider when purchasing a cyber insurance policy is one of the most difficult challenges for banks. This article discuss the top five issues a bank should consider when looking for a strong cyber liability insurance policy.

Smart Contracts: Legal Agreements For The Blockchain, Reggie O'Shields

North Carolina Banking Institute

No abstract provided.

Defining And Verifying Accredited Investors: Effect Of Potential Sec Changes On North Carolina's Crowdfunding Statute, The Nc Paces Act, Harris M. Watkins

North Carolina Banking Institute

No abstract provided.

Front Matter, North Carolina Banking Institute

North Carolina Banking Institute

No abstract provided.

The Consumer Financial Protection Bureau At Five: A Survey Of The Bureau's Activities, Donald C. Lampe, Ryan J. Richardson

North Carolina Banking Institute

This article surveys the Consumer Financial Protection Bureau's ("CFPB" or the "Bureau") activities over its first five years, with an emphasis on publicly available empirical data. Part II provides an overview of the CFPB’s creation and operations, including discussion of its structure and powers. Part III provides data and analysis on the CFPB’s activities across its three primary functional areas—rulemaking, supervision, and enforcement— for the five-year period from July 21, 2011, to July 21, 2016. Part IV summarizes major developments in the CFPB’s sixth year and the agency’s stated policy priorities through 2017. Finally, Part V concludes with a discussion …

The New York Department Of Financial Service's New Anti-Money Laundering Regulation: A Model For Improvement, Roy G. Dixon Iii

North Carolina Banking Institute

No abstract provided.

The Wells Fargo Scandal And Efforts To Reform Incentive-Based Compensation In Financial Institutions, Justin H. Mims

North Carolina Banking Institute

No abstract provided.

Table Of Contents, North Carolina Banking Institute

North Carolina Banking Institute

No abstract provided.

The Curious Case Of Madden V. Midland Funding And The Survival Of The Valid-When-Made Doctrine, Charles M. Horn, Melissa R.H. Hall

North Carolina Banking Institute

This article explores the facts and holdings of Madden and its short-term and longer-term legal and commercial implications. The authors conclude that Madden was wrongly decided due to a misplaced primary focus by the defendants on federal bank preemption principles, causing the Second Circuit to all but ignore the valid-when-made doctrine. Although Madden is having an adverse short-term impact, the authors believe that ultimately it will be properly limited in its scope and impact, will not be embraced across the board by other state or federal courts, and will not result in significant changes to the law and principles of …

The Consequences From Issuing Invalid Municipal Debt: Examining The Voidable Debt Issues In The Detroit Bankruptcy And Puerto Rican Debt Crisis, Joshua C. Showalter

North Carolina Banking Institute

No abstract provided.

Using A Shotgun To Kill A Fly: Issues With The Cfpb's Payday Lending Proposal And The Need To Incentivize Banks To Enter The Marketplace, Ethan D. Trotz

North Carolina Banking Institute

No abstract provided.

Nested Payment Intermediaries In The Ach Network: Risks And Responsibilties Of Odfis, Edward Mccartney

North Carolina Banking Institute

No abstract provided.

In Memoriam: H. Gary Pannell 1937-2016, North Carolina Banking Institute

North Carolina Banking Institute

No abstract provided.

Virtual Currencies: Growing Regulatory Framework And Challenges In The Emerging Fintech Ecosystem, V. Gerard Comizio

North Carolina Banking Institute

This article discusses the background of virtual currency—primarily Bitcoin’s development and legal and regulatory complications, including the Silk Road and Mt. Gox prosecutions that have arisen in connection with virtual currency in business activities. Next, the article discusses major legal, enforcement, and regulatory initiatives that address challenges related to virtual currencies, both in the United States and in countries with major financial services industries. The article then discusses international legal and regulatory developments, surveying select jurisdictions with significant impacts on the global financial services industry. Finally, the article briefly concludes with some closing thoughts.

First Time For Everything: The Cfpb Enforces Data Security, Graham T. Dean

North Carolina Banking Institute

No abstract provided.

Standing, Statutory Violations, And Concrete Injury In Federal Consumer Financial Protection Statutes After Spokeo, Inc. V. Robins, John H. Hykes Iii

North Carolina Banking Institute

No abstract provided.

The North Carolina State Tax Treatment Of Virtual Currency: An Unanswered Question, Kelly J. Winstead

North Carolina Banking Institute

No abstract provided.

Book Review - How The Other Half Banks: Exclusion, Exploitation And The Threat To Democracy, By Mehrsa Baradaran (Cambridge, Massachusetts, Harvard University Press, 2015), 336 Pp., $29.95, Stephanie Ben-Ishai

Articles & Book Chapters

In her bold and timely new book, Professor Baradaran brings an American perspective, supported by detailed empirical data and historical analysis, to bear on how to solve the problem of financial exclusion. She begins by situating her analysis in the context of the important relationship between banks and governments. A social contract has existed between banks and government since the earliest days of the Republic. The government supports banks through trust-inducing insurance, bailouts, liquidity protection, and a framework that allows for the allocation of credit to the entire economy. Banks support government by operating the central machinery of the economy …

Rethinking Corporate Governance For A Bondholder Financed, Systemically Risky World, Steven L. Schwarcz

William & Mary Law Review

This Article makes two arguments that, combined, demonstrate an important synergy: first, including bondholders in corporate governance could help to reduce systemic risk because bondholders are more risk averse than shareholders; second, corporate governance should include bondholders because bonds now dwarf equity as a source of corporate financing and bond prices are increasingly tied to firm performance.

Regulating Debt Collection, Christopher K. Odinet, Roederick C. White

Faculty Scholarship

Debt collection. It often starts as a late night call carrying threats of being thrown in prison, ruin at the workplace, and trouble for the family unless you pay up. While the law actually prohibits some of these tactics, most consumers do not know their legal rights, which leave much to be desired, or fail to exercise them when faced with the harassing practices of some debt collectors. Moreover, the debt collection industry as a whole — both massive and sophisticated — lacks the incentives to self-police or internally punish bad actors. In July 2016 the Consumer Financial Protection Bureau …

You Can’T Stop What You Can’T See: Complementary Risk Mitigation Through Compensation Disclosure, Matt Reeder

William & Mary Business Law Review

Section 956 of the Dodd-Frank Act requires regulators to help prevent the next financial crisis by monitoring executive compensation arrangements to prevent them from becoming excessive or leading to “material financial loss.” A now-pending rule seeks to do just this. This Article argues that the rule is well-conceived inasmuch as it limits the total portion of compensation that can be based on risk-inducing incentives, ties incentive-based compensation to longer-term performance, places a ceiling on potential incentivebased earnings, provides for downward adjustment and clawbacks, prohibits many hedging behaviors, and institutionalizes governance mechanisms and oversight policies. But, by placing a number of …

Dodd-Frank Repeal Unappealing For Homeowners, David J. Reiss

Cornell Law Faculty Working Papers

No abstract provided.

Reshaping Third-Party Funding, Victoria Sahani

Faculty Scholarship

Third-party funding is a controversial business arrangement whereby an outside entity—called a third-party funder—finances the legal representation of a party involved in litigation or arbitration or finances a law firm’s portfolio of cases in return for a profit. Attorney ethics regulations and other laws permit nonlawyers to become partial owners of law firms in the District of Columbia, England and Wales, Scotland, Australia, two provinces in Canada, Germany, the Netherlands, New Zealand, and other jurisdictions around the world. Recently, a U.S.-based third-party funder that is publicly traded in England started its own law firm in England. In addition, some U.S. …