Banking and Finance Law Commons^™

Impediments To Financial Development In The Banking Sector: A Comparison Of The Impact Of Federalism In The United States And Germany, Khalil Nicholas Maalouf

Michigan Journal of International Law

This Note examines how differences in U.S. and German variants of federalism have contributed to the formation and development of the dual banking system in the United States and the three-pillar banking system in Germany. Specifically, this Note considers the manner in which federalism has informed the respective banking systems' reactions to dynamic changes in the global banking industry and analyzes the role federalism has played in contributing to or impeding reform efforts in the United States and Germany.

Predatory Structured Finance, Christopher L. Peterson

ExpressO

Predatory lending is a real, pervasive, and destructive problem as demonstrated by record settlements, jury awards, media exposes, and a large body of empirical scholarship. Currently the national debate over predatory mortgage lending is shifting to the controversial question of who should bear liability for predatory lending practices. In today’s subprime mortgage market, originators and brokers quickly assign home loans through a complex and opaque series of transactions involving as many as a dozen different strategically organized companies. Loans are typically transferred into large pools, and then income from those loans is “structured” to appeal to different types of investors. …

Consuming Debt: Structuring The Federal Response To Abuses In Consumer Credit, Heidi Mandanis Schooner

Scholarly Articles

Predatory lending is an avaricious fraud that demands attention. Several states have enacted new laws to combat predatory lending. Moreover, the battle against predatory lending and other abusive practices has focused attention on the overall structure of consumer credit laws. The current structure is dual; both state and federal governments play significant roles in combating credit fraud. The dual structure has been the source of controversy as federal regulators have claimed the power to preempt state law. This article furthers the structural debate and the effort to combat predatory lending by examining the architecture of consumer credit laws within the …

Self-Regulation For Safety And Security: Final Minutes Or Finest Hour?, Douglas C. Michael

Law Faculty Scholarly Articles

The terrorist attacks of September 11, 2001, and the accounting and auditing crisis later caused by the Enron and Worldcom scandals of that same year, created a great sense of insecurity in many Americans. In this Article, I analyze the federal government's response to crisis. I first define what a crisis is: a sudden, existential threat to which the entity has insufficient resources to respond. I then explain how regulation for safety and security is unique in two aspects: perceptions matter, and the assistance of the regulated entities is essential. I proceed by describing and analyzing the regulatory history and …

Privatization Slow-Down: Government Reluctance Or Economic Failure?, Sara Alam El-Din

Archived Theses and Dissertations

This research is trying to disclose the reasons behind the slow down of the privatization program in Egypt. It does so by assessing the government's policy with regard to privatization by reference to secondary material and two case studies: the banking and the maritime sectors. These two case studies were carefully chosen in order to highlight particular issues related to the slow down of the process of privatization and the government's policies. The banking sector, for example, is one of the sectors that the government seems reluctant to privatize and only last January did the government announce the willingness to …

Core Principles For Effective Banking Supervision: An Enforceable International Financial Standard?, Duncan E. Alford

Faculty Publications

The Basel Committee on Banking Supervision serves as an international forum to discuss international bank supervision issues. Because of the gravity and frequency of banking crises since the demise of the Bretton Woods System in the early 1970s, international financial standards have emerged as a method to minimize these crises. In 1998, the Basel Committee issued a comprehensive standard on bank super vision that built upon its work over the previous two and a half decades. In this Article, the author analyzes this comprehensive standard the Core Principles for Effective Banking Supervision-and assesses its implementation in the European Union, the …

The False Promise Of De-Regulation In Banking, Jonathan R. Macey

ExpressO

Jonathan R. Macey

The False Promise of De-Regulation in Banking

Abstract

This Article presents new approach to the concept of "deregulation" in financial services and particularly banking. Generally regulatory policy is thought to involve more or less straightforward choices between regulation and deregulation. Those most concerned with market failure and equality of outcomes favoring regulation and those with faith in markets and concerns about efficient outcomes favoring deregulation.

This Article shows that government regulation, sometimes in heavy doses, is necessary in order for private markets to function effectively. Consequently, government has in important role to play in fostering markets. The …

Islamic Financial Structures As Alternatives To International Loan Agreements: Challenges For American Financial Institutions, Babback Sabahi

ExpressO

In the past few decades, the Muslim countries have witnessed considerable economic growth. The markets of these countries spanning from North Africa to South East Asia, are expanding at a fast pace, and gradually are turning into important international economic centers. The expansion and sophistication of the Islamic markets, as well as increasing demand for Islamic financial products by borrowers, have spurred a movement toward Islamization of different aspects of economic activities in these markets. This movement has resulted in the creation of an Islamic financial market alongside the conventional financial markets. The data on the size of the Islamic …

Credit Where It Counts: The Community Reinvestment Act And Its Critics, Michael S. Barr

ExpressO

Despite the depth and breadth of U.S. credit markets, low- and moderate-income communities and minority borrowers have not historically enjoyed full access to credit. The Community Reinvestment Act (CRA) was enacted to help overcome barriers to credit for low- and moderate-income communities, and minority borrowers. Scholars have long leveled numerous critiques against CRA as unnecessary, ineffectual, costly, and lawless. But I argue, using recent empirical evidence, that CRA has enhanced access to credit for low-income, moderate-income, and minority borrowers at relatively low cost. I contend that market failures and discrimination exacerbate credit problems in low-income and minority communities and justify …

Book Review: Benjamin Geva, Bank Collections And Payment Transactions, Arnold S. Rosenberg

ExpressO

The author reviews Geva, Bank Collections and Payment Transactions (Oxford University Press, 2001). The book is the first comprehensive work on the comparative law of checks and electronic funds transfers, and attempts to identify a universal "law merchant" governing checks and electronic funds transfers in these bodies of law.

Domestic And External Debt: The Doomed Quest For Equal Treatment, Anna Gelpern, Brad Setser

Georgetown Law Faculty Publications and Other Works

Until recently, governments borrowed from domestic residents and foreign investors using very different instruments. Residents bought "domestic debt" - paper denominated in local currency and governed by domestic law. Foreign investors preferred "external debt", which offered foreign currency and foreign law. Because there was virtually no overlap between resident and nonresident holdings, it mattered little that lawyers and economists defined domestic and external debt differently: lawyers focused on features such as governing law and jurisdiction, economists on the holder's residence and currency of denomination. The legal and economic definitions of domestic and external debt were effectively bundled: "domestic debt" meant …

Using The World Bank Inspection Panel To Defend The Interests Of Project-Affected People, David Hunter

Scholarly Articles in Law Reviews & Journals

No abstract provided.

Microcredit: Fulfilling Or Belying The Universalist Morality Of Globalizing Markets, Kenneth Anderson

Scholarly Articles in Law Reviews & Journals

No abstract provided.

Cooperation Within Anarchy: A Case Study Of The Success Of Commercial Banking During The Lebanese Civil War, Mona Kalash

University Avenue Undergraduate Journal of Economics

This paper analyses the success of the Lebanese banking system during the Lebanese civil war, which lasted from 1975 until 1989. As the rest of the economy plunged into recession due to intense warfare and governmental collapse, the bankers and their clients continued to cooperate across battle lines in the loaning business. The argument of the paper is that the linkage of social and economic games and the importance of reputation in business created incentives for bankers and businessmen to cooperate in the Prisoner’s Dilemma game of lending and borrowing. I challenge the theoretical perspective that cooperation is not possible …

Strategic Planning For Financial Institutions In A New Legal And Economic Environment, Carl Felsenfeld, William T. Lifland, Ernest T. Patrikis, Frank Scifo, William J. Sweet Jr.

Fordham Journal of Corporate & Financial Law

No abstract provided.

20th Annual Conference On Legal Issues For Financial Institutions, Office Of Continuing Legal Education At The University Of Kentucky College Of Law

Continuing Legal Education Materials

Program and materials from the 20th Annual Legal Issues for Financial Institutions Conference held by UK/CLE in April of 2000.

Banking Regulation: Its History And Future, Jerry W. Markham

Faculty Publications

This article traces the history of the growth and regulation of banking services in the United States. That history will show how the existing regulatory structure was developed in response to demands of the Civil War and a populist crusade against the “money trust.” That effort reached its zenith with the New Deal legislation of the 1930s, but began to fall apart as financial services consolidated. The article will then show how the financial services industries (banking, insurance, securities and derivatives) began to merge in their product base while at the same time separating on a fault line between institutional …

18th Annual Conference On Legal Issues For Financial Institutions, Office Of Continuing Legal Education At The University Of Kentucky College Of Law, Debra K. Stamper, Arthur L. Freeman, Phillip H. Schwartz, Martha Andes Ziskind, Jessica R. Schumacher, Grace M. Giesel, John T. Mcgarvey, Holli Hart Targan, Lea Pauley Goff, Julie Mix Mcpeak, David L. Beckman, M. Thurman Senn, Thomas J. Luber, Walter R. Byrne, Caryn F. Price, R. James Straus

Continuing Legal Education Materials

Materials from the 18th Annual Conference on Legal Issues for Financial Institutions held by UK/CLE in 1998.

Logos, Links, And Lending: Towards Standardized Privacy And Use Policies For Banking Web Sites, Walter Effross

Scholarly Articles in Law Reviews & Journals

No abstract provided.

Arbitration In Banking And Finance, William W. Park

Faculty Scholarship

The world's bifurcation into debtors and creditors has created yet another class of people: those involved in resolving disputes between lenders and borrowers. To promote reliability in financial dispute resolution, credit agreements have generally provided that potential controversies will be submitted either to courts in the bank's home jurisdiction, or to courts of a major money center such as London or New York.

Putting The Cards Before The Purse: Distinctions, Differences, And Dilemmas In The Regulation Of Stored Value Card Systems, Walter Effross

Scholarly Articles in Law Reviews & Journals

No abstract provided.

Synergy And Friction – Cra, Bhcs, Sba And Community Development Lending, Cassandra Jones Havard

All Faculty Scholarship

The era of federal funding retrenchment makes acute the need for community businesses to have access to capital. The Small Business Administration (SBA) provides small businesses with access to low-cost loans funds. The existing SBA regulatory scheme fosters an approach which allows a private mechanism, lenders, to make public policy decisions about the socio-economic character of communities. Implicit in the Community Reinvestment Act (CRA) and its recent reforms are a recognition of the complex interdependence among policy objectives. The reform statute specifically recognizes that geographical disinvestment has an equally deleterious effect on small business lending as it does on residential …

Effect Of Regulation On Banking: California 1879-1929, Lynne Doti, Richard Runyon

Economics Faculty Articles and Research

California had a virtually unregulated banking environment until the first comprehensive banking regulations were passed in 1905. These regulations, and subsequent changes in 1909, required reserves and paid-up capital. Several tests of commonly accepted measures of safety, such as bank reserves, paid-up capital, bank failures, and real estate loans that resulted in foreclosure, are compared for selected years before and after the regulations. Results do not clearly demonstrate that regulation enhanced the safety of individual banks, but do support the conclusion that regulation enhanced the safety of the banking system as a whole.

Amazon Burning And The World Bank: Lessons From The Second World Bank Inspection Panel Claim, David Hunter

Scholarly Articles in Law Reviews & Journals

No abstract provided.

The Legal Environment Of International Finance: Thinking About Fundamentals, Merritt B. Fox

Michigan Journal of International Law

Review of International Finance: Transactions, Policy, and Regulations by Hals S. Scott and Philip A. Wellons

15th Annual Legal Issues For Financial Institutions Conference, Office Of Continuing Legal Education At The University Of Kentucky College Of Law, Walter R. Byrne Jr, Mark F. Sommer, Lisa Koch Bryant, Leonard A. Watkins, Thomas W. Grundy, Joann B. Heppermann, James C. Seiffert, William H. Haden Jr., T. Richard Riney, Marcus P. Mcgraw, W. Bradford Boone, John T. Mcgarvey, James F. Rose, J. Rick Jones, M. Thurman Senn, M. Brooks Senn

Continuing Legal Education Materials

Program and materials from the 15th Annual Legal Issues for Financial Institutions Conference held by UK/CLE on March 10-11, 1995.

Cross-Border Lending: What's Different This Time, Lee C. Buchheit

Northwestern Journal of International Law & Business

This article is based upon the author's lecture entitled "The Next Wave of Cross-Border Lending" delivered in connection with the Meredith Lectures at McGill University in April 1994.* The subject of that lecture, and of this article, is how cross-border lending to less developed countries (LDCs) in the 1990s differs from the last major period of such lending in the late 1970s. It is surely a testament to the accelerated obsolescence of modem financial commentary that the author's April 1994 lecture - delivered in the middle of a boom in cross-border lending - has already been followed by a bust …

Brief Incursion Into Bankruptcy And The Enforcement Of Creditor's Rights In Brazil, Antonio Mendes

Northwestern Journal of International Law & Business

This article is an overview of bankruptcy law and concerns in Brazil, as well as a exploration of what rights creditors have in bankruptcy.

The Integration Of Banking And Telecommunications: The Need For Regulatory Reform, Kalpak S. Gude

Federal Communications Law Journal

The recent proliferation of computer and telecommunications technologies have dramatically changed the banking industry's business sector. While this modernization has allowed banks to increase their efficiency and service, banking regulations have not kept pace. Telecommunications companies, armed with new FCC regulations encouraging increased competition, have eagerly taken this opportunity to expand their business offerings into the financial services sector. In this Note, the Author examines the telecommunications services presently provided by banks and the present regulatory structure that prevents further bank entry into the telecommunications sector. The Author concludes that banking regulations should be changed to allow banks to enter …

Laws Separating Commercial Banking And Securities Activities As An Impediment To Free Trade In Financial Services: A Comparative Study Of Competitiveness In The International Market For Financial Services, Sarah A. Wagman

Michigan Journal of International Law

By comparing U.S., Japanese, and European institutions' competitiveness in the international market for financial services, this Note focuses on the possible implications of the Glass-Steagall Act in the international trade context as a means of exploring some of the additional arguments which have emerged in favor of reforming U.S. bank regulation.