Banking and Finance Law Commons^™

Peeking Into The House Of Cards: Money Laundering, Luxury Real Estate, And The Necessity Of Data Verification For The Corporate Transparency Act’S Beneficial Ownership Registry, S. Alexandra Bieler

Fordham Journal of Corporate & Financial Law

It is estimated that $800 billion to $2 trillion are laundered globally every year, funding the schemes of bad actors and terrorists alike. These astronomical sums are moved around the world without detection; this is in large part due to the ease with which anonymous shell companies, typically limited liability companies (LLCs), can be created, particularly in the United States. America is one of the most egregious enablers of this practice because most states require little to no information about the person ultimately controlling the entity, known as the “beneficial owner.” Working through an LLC, bad actors often turn to …

Does Cryptocurrency Staking Fall Under Sec Jurisdiction?, Nicholas E. Gonzalez

Fordham Journal of Corporate & Financial Law

Bitcoin, the first blockchain and cryptocurrency (crypto), launched in 2009 when the Bitcoin network opened to the public. A blockchain is a digital ledger technology where transactions are aggregated and permanently recorded into blocks of information. Maintenance of a blockchain is typically conducted by decentralized managers who own and operate network computers (“Nodes”) and serve the functions normally handled by central intermediaries to validate and confirm transactions. All Nodes follow a blockchain protocol. In Bitcoin’s and most cryptos’ cases, this protocol is known as a Proof- of-Work protocol which requires a large amount of energy consumption. Consequently, Proof-of-Stake protocols (“PoS”) …

The Tailors Of Wall Street, Graham S. Steele

University of Colorado Law Review

The narrative that emerged in the aftermath of the COVID-19 financial crisis has focused on nonbank financial intermediation as the primary vulnerability that plagued financial markets starting in March of 2020 and the exogenous nature of a public health crisis as a unique precipitating event. As a result, the crisis has largely been viewed as vindication for financial regulation as it applies to banks, with the Federal Reserve playing the role of heroic rescuer of the financial system.

This Article offers an alternative-and critical-analysis of the performance of banks during the COVID-19 financial crisis and the Fed's role as a …

The Role Of Rival Litigation In Wilmarth's New Glass-Steagall, Heidi Mandanis Schooner

University of Colorado Law Review

No abstract provided.

Rethinking Kirschner V. J.P. Morgan: How Securities And Banking Laws Should Apply To Syndicated Loans, Joel Crank

University of Colorado Law Review

No abstract provided.

Who's Looking Out For The Banks?, Jeremy C. Kress

University of Colorado Law Review

When the Gramm-Leach-Bliley Act authorized financial conglomeration in 1999, Professor Arthur Wilmarth, Jr. presciently predicted that diversified financial holding companies would try to exploit their bank subsidiaries by transferring government subsidies to their nonbank affiliates. To prevent financial conglomerates from taking advantage of their insured depository subsidiaries in this way, policymakers instructed a bank's board of directors to act in the best interests of the bank, rather than the bank's holding company. This symposium Article, written in honor of Professor Wilmarth's retirement, contends that this legal safeguard ignores a critical conflict of interest: the vast majority of large-bank directors also …

Foreword: Arthur E. Wilmarth, Jr., A Scholar Of Uncommon Conviction, Integrity, And Boldness, Patricia A. Mccoy

University of Colorado Law Review

No abstract provided.

Afterword: Why "Taming The Megabanks" Should Remain A Top Priority For Financial Regulators And Policymakers, Arthur E. Wilmarth Jr.

University of Colorado Law Review

No abstract provided.

A Process For Politics, Anna Gelpern

Georgetown Law Faculty Publications and Other Works

I argue that consistent and public process observance has a distinctly valuable function in sovereign debt restructuring, with no precise equivalent in national insolvency regimes. National regimes reflect the distribution bargains of their enactment, presumptively legitimate and binding. Debtors and creditors allocate insolvency losses in their shadow, with liquidation as a backstop and politics just outside the frame. All else equal, the restructuring process has a harder job with sovereign debt. There is no liquidation backstop and no default distribution scenario. Each crisis resolution episode must allocate losses from scratch among the country’s citizens, foreign and domestic creditors, and other …

Broken Infrastructure, Del C. Wright Jr.

Faculty Works

This article examines the cryptocurrency-related provisions of the Infrastructure Investment and Jobs Act of 2021, focusing on amendments to the Internal Revenue Code that expand tax reporting and surveillance obligations for digital assets. Specifically, it analyzes the new “Broker” and “Tax” provisions, which extend reporting requirements beyond traditional financial intermediaries to actors in the blockchain ecosystem who may lack access to the necessary data. The article situates these provisions within the broader regulatory and political context, tracing their roots to prior Treasury rulemaking efforts and exploring their intended role in closing the “tax gap.” It highlights the significant compliance challenges, …

The Wireless Investors Movement, Sergio Alberto Gramitto Ricci, Christina M. Sautter

Faculty Works

The inaugural guest academic article for the University of Chicago Business Law Review Blog discusses how Millennial and GenZ investors can set in motion a social movement with disruptive effects on the current corporate governance paradigm. It refers to Millennial and GenZ investors as “wireless investors” and their social movement as the “Wireless Investors Movement.” The Wireless Investors Movement, fueled by wireless investors’ vision of the world and technology savviness, will bring corporations to pursue social and environmental causes. This short contribution analyzes the characteristics of the Wireless Investors Movement and the effects it will have on corporate governance.

ปัญหาการตีความคำว่า “รายจ่ายซึ่งมิใช่รายจ่ายเพื่อหากำไรหรือเพื่อกิจการโดยเฉพาะ" ตามมาตรา 65 ตรี (13) ประมวลรัษฎากร, พัชราเพ็ญ ธรรมญาณรังสี

Chulalongkorn University Theses and Dissertations (Chula ETD)

เอกัตศึกษาฉบับนี้มุ่งศึกษาถึงปัญหาการตีความคำว่า “รายจ่ายซึ่งมิใช่รายจ่ายเพื่อหากำไรหรือเพื่อกิจการโดยเฉพาะ" ตามมาตรา 65 ตรี (13) แห่งประมวลรัษฎากรในปัจจุบัน ที่ยังคงขาดหลักเกณฑ์การตีความที่ชัดเจนและแน่นอน ทำให้ผู้บังคับใช้กฎหมายและผู้ปฏิบัติตามกฎหมายตีความมาตราดังกล่าวในความหมายที่แตกต่างกัน ผลที่ได้จากการศึกษาค้นคว้าคือ สาเหตุของปัญหาการตีความเกิดจากความซับซ้อนของโครงสร้างประมวลรัษฎากรในส่วนของการหักรายจ่าย ความไม่ชัดเจนของกฎหมาย รวมถึงการขาดเครื่องมือที่คุ้มครองสิทธิของผู้เสียภาษีที่มีประสิทธิภาพเพียงพอ โดยแม้ผู้บังคับใช้กฎหมายจะวางหลักเกณฑ์การตีความไว้ในข้อหารือกรมสรรพากรและคำพิพากษาศาลซึ่งสอดคล้องกับแนวคิดรายจ่ายทางภาษี แต่ข้อหารือดังกล่าวก็ไม่มีสถานะทางกฎหมายหรือผลผูกพันให้ฝ่ายใดต้องยึดถือปฏิบัติตาม ทำให้บางกรณีหลักเกณฑ์การตีความของฝ่ายจัดเก็บภาษีอากรเกิดความไม่แน่นอนในข้อเท็จจริงที่คล้ายคลึงกัน ทั้งยังเกิดความขัดแย้งในการตีความระหว่างหน่วยงานผู้บังคับใช้กฎหมาย 2 องค์กร สิ่งเหล่านี้จึงแสดงให้เห็นถึงปัญหาการตีความคำว่า “รายจ่ายซึ่งมิใช่รายจ่ายเพื่อหากำไรหรือเพื่อกิจการโดยเฉพาะ" อันเป็นปัญหาความไม่แน่นอนของกฎหมาย ซึ่งส่งกระทบต่อสิทธิขั้นพื้นฐานของผู้เสียภาษีในอันจะเพิ่มความเสี่ยงต่อการถูกประเมินภาษีย้อนหลัง เบี้ยปรับ และเงินเพิ่มดังนั้นผู้เขียนจึงได้ศึกษาโครงสร้างกฎหมาย หลักเกณฑ์และวิธีการปฏิบัติเบื้องต้นเกี่ยวกับการตีความคำว่า “รายจ่ายซึ่งมิใช่รายจ่ายเพื่อหากำไรหรือเพื่อกิจการโดยเฉพาะ" ของประเทศสหรัฐอเมริกา ประเทศสาธารณรัฐสิงคโปร์ และประเทศออสเตรเลีย เพื่อนำหลักการและแนวคิดในการลดปัญหาที่เกิดขึ้นจากการตีความและบังคับใช้กฎหมายของประเทศดังกล่าวมาเป็นแนวทางเบื้องต้นในการปรับใช้กับโครงสร้างระบบภาษีของประเทศไทยให้มีประสิทธิภาพมากยิ่งขึ้น

Learning To Manipulate A Financial Benchmark, Megan Shearer, Gabriel V. Rauterberg, Michael P. Wellman

Law & Economics Working Papers

Financial benchmarks estimate market values or reference rates used in a wide variety of contexts, but are often calculated from data generated by parties who have incentives to manipulate these benchmarks. Since the London Interbank Offered Rate (LIBOR) scandal in 2011, market participants, scholars, and regulators have scrutinized financial benchmarks and the ability of traders to manipulate them.

We study the impact on market welfare of manipulating transaction-based benchmarks in a simulated market environment. Our market consists of a single benchmark manipulator with external holdings dependent on the benchmark, and numerous background traders unaffected by the benchmark. We explore two …

Twenty Yards From The End Zone: Adr, And The Potential For Greater Levels Of Gender Equality In Professional Sports Employment, Elan Kirshenbaum

Cardozo Journal of Conflict Resolution

This Note will highlight the specific instances of gender-based employment discrimination in professional sports and then consider how alternative dispute resolution (“ADR”) provides the best avenue to address and correct these imbalances. In particular, this Note will analyze the benefits and drawbacks of ADR and litigation, while simultaneously applying this analysis to the discussion of the gender gap in professional sports employment. Part II will outline several examples of this discrimination, while also briefly detailing the general hiring and wage gaps that exist between men and women. In doing so, this section will examine the hiring practices of three of …

From Conflict To Co-Creation Three Powerful Stories Of Transformational Change, Payton Silket, Cheryl L. Epps

Cardozo Journal of Conflict Resolution

In our communities today, too often, the end goal of dialogue is to develop methods that allow people to coexist, but this is not enough. If left at that, our society will increasingly become more segmented and stratified, where groups of people are able to reside in the same vicinity but only interact when absolutely necessary or safe. This is no way to live, and, in fact, it is a recipe for polarization and the eventual death of dialogue.

Table Of Contents, Seattle University Law Review

Seattle University Law Review

Table of Contents

The Rules Of Professional Responsibility And Legal Finance: A Status Update, Anthony J. Sebok

Articles

Legal finance occurs when strangers fund litigation for profit. Traditionally looked upon with suspicion in the common law, and limited by the doctrines of champerty and maintenance, legal finance is now a thriving part of the American legal landscape. Legal finance has been promoted as a solution to the access-to-justice problems facing working and middle class Americans, as well as a new asset class for Wall Street. At the center of legal finance, however, are lawyers – not the lawyers who write the contracts for the financing – but the lawyers for the cases being financed.
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Steering Loan Modifications Post-Pandemic, Pamela Foohey, Dalie Jimenez, Christopher K. Odinet

Articles

As part of federal and state relief programs created during the COVID-19 pandemic, many American households received pauses on their largest debts, particularly on mortgages and student loans. Others may have come to agreements with their lenders, likewise pausing or altering payment on other debts, such as auto loans and credit cards. This relief allowed households to allocate their savings and income to necessary expenses, like groceries, utilities, and medicine. But forbearance does not equal forgiveness. At the end of the various relief periods and moratoria, people will have to resume paying all their debts, the amounts of which may …

Lawmaking Without Law: How Overreliance On Economics Fails Financial Regulation (And What To Do About It), Steven L. Schwarcz, Theodore L. Leonhardt

Faculty Scholarship

This Article examines a fundamental failure of process in lawmaking: the overreliance of lawmakers on economists and economic scholarship when designing and implementing financial regulation, to the virtual exclusion of lawyers and legal scholarship. This overreliance leads to regulation that often is based on theoretical models and assumptions that are poorly informed by experience and may not withstand real-world testing. The Article examines how to improve financial regulation by better integrating legal scholarship and lawyerly insights into the lawmaking process. Among other things, that will require law professors to gain the attention, and earn the respect, of lawmakers by writing …

Comments On Proposed Rules For Special Purpose Acquisition Companies, Shell Companies, And Projections, Andrew F. Tuch

Scholarship@WashULaw

In March 2022, the Securities and Exchange Commission released proposed rules for special purpose acquisition companies (SPACs), shell companies, and projections. In this comment letter, filed with the SEC, I provide a critical assessment of this proposal.

The SEC proposed far-reaching changes intended to enhance investor protections and align disclosure and liability rules in de-SPACs more closely with those in traditional IPOs. An under-appreciated feature of the proposed reforms is that they would subject de-SPACs to provisions closely modeled on Rule 13e-3 of the Exchange Act, which applies to going-private transactions, including management buyouts. Intended to tackle potential conflicts of …

The Further Erosion Of Investor Protection: Expanded Exemptions, Spac Mergers, And Direct Listings, Andrew F. Tuch, Joel Seligman

Scholarship@WashULaw

This Article examines the decades-long decline of investor protections enshrined in the Securities Act of 1933, most notably Section 11, which imposes near strict liability on corporate insiders and certain secondary actors, primarily underwriters. The provision, the most potent in the federal securities regulatory arsenal, popularized the concept of outside gatekeepers and transformed practices in securities offerings, making due diligence a byword for careful investigation of facts whether required by legal process or otherwise. The measures required by Section 11 restored confidence in US capital markets in the wake of the Great Depression and have been instrumental in these markets’ …

#Fintok And Financial Regulation, Nikita Aggarwal, D. Bondy Valdovinos Kaye, Christopher K. Odinet

Faculty Scholarship

Social media platforms are becoming an increasingly important site for consumer finance. This phenomenon is referred to as “FinTok,” a reference to the “#fintok” hashtag that identifies financial content on TikTok, a popular social media platform. This Essay examines the new methodological possibilities for consumer financial regulation due to FinTok. It argues that FinTok content offers a novel and valuable source of data for identifying emerging fintech trends and associated consumer risks. As such, financial regulators should use FinTok content analysis—and social media content analysis more broadly—as an additional method for the supervision and regulation of consumer financial markets. The …

How Public Pension Plans Have Shaped Private Equity, William W. Clayton

Maryland Law Review

No abstract provided.

Block Rewards, Carried Interests, And Other Valuation Quandaries In Taxing Compensation, Henry M. Ordower

All Faculty Scholarship

In this article, Ordower contextualizes block rewards litigation with historical failures to tax compensation income paid in kind. Tax fairness principles demand current taxation of the noneconomically diluting block rewards’ market value.

Table Of Contents

Seattle University Law Review

Table of Contents

Madison 2.0—Applying The Constitution’S Taxing And Spending Clause To Revitalize American Federalism, Mohamed Akram Faizer

Seattle University Law Review

This article introduces the proposal entitled Madison 2.0 which calls for an enlightened federal government to enact legislation—using its broad ability to tax and spend for the general welfare—to revitalize, as opposed to undermine, American federalism. Part I discusses American Federalism today and the need for an updated approach. Part II explores the government's dysfunctional response to the Covid-19 pandemic. Part III proposes how to revitalize American federalism through the Spending Clause. Part IV discusses how to claw back funds in situations of state recalcitrance and replacing funds with a basic income. Lastly, this article concludes by explaining why the …

The Future Of Cryptocurrency And Real Estate Transactions, Rachel Silverstein

Touro Law Review

Bitcoin and other cryptocurrencies are all the rage right now and are beginning to make their ways into everyday transactions— including real estate transactions. This article discusses whether using cryptocurrencies to complete real estate transactions will become the norm in the near future. Cryptocurrency laws in general are few and far between, but laws surrounding cryptocurrency and real property are even more sparse. Recent case law involving cryptocurrency is a major focus of this article, along with background knowledge about cryptocurrency and the meaning of “money” as we know it today. The article concludes with a discussion about the unlikelihood …

Stress Testing During Times Of War, Kathryn Judge

Faculty Scholarship

In the spring of 2009, the United States was mired in the greatest recession it had faced since the Great Depression. In March, the Dow Jones Industrial Average had fallen to 6,594.44, a total decline of 53.4 percent from its peak in the fall of 2007. The official unemployment rate was over 9 percent and still trending upward, eventually exceeding 10 percent. With the support of Congress, the Federal Reserve (the Fed) and other financial regulators had launched an array of initiatives to contain the fallout of what had become a global financial crisis. These interventions, including a massive recapitalization …

Steering Loan Modifications Post-Pandemic, Pamela Foohey, Dalie Jimenez, Christopher K. Odinet

Scholarly Works

As part of federal and state relief programs created during the COVID-19 pandemic, many American households received pauses on their largest debts, particularly on mortgages and student loans. Others may have come to agreements with their lenders, likewise pausing or altering payment on other debts, such as auto loans and credit cards. This relief allowed households to allocate their savings and income to necessary expenses, like groceries, utilities, and medicine. But forbearance does not equal forgiveness. At the end of the various relief periods and moratoria, people will have to resume paying all their debts, the amounts of which may …

Credit Scoring Duality, Pamela Foohey, Sara Sternberg Greene

Scholarly Works

Credit scoring is central to people’s financial growth and prosperity or financial decline and stagnation. People with a good credit score and accompanying credit report can buy opportunities to advance economically. The benefits they reap from their attractiveness to lenders and employers helps feed their future success. In contrast, people with a fair or poor credit score become stuck in cycle of high interest rates and costly loan terms, large required down payments, and denied applications for rentals, cell phone plans, and employment. Employers, service providers, lenders, and alternative financial service providers have begun to use alternative credit scoring models, …