Banking and Finance Law Commons^™

The Money Problem: A Rejoinder, Morgan Ricks

Vanderbilt Law School Faculty Publications

Let me begin by thanking Yuri Biondi and Accounting, Economics and Law: A Convivium for hosting this book review symposium. It is a privilege to have my book reviewed by this distinguished roster of experts. Since the book's publication I have had some time to reflect on its strengths and weaknesses. Unsurprisingly, the reviewers in this issue have identified a number of the book's more glaring shortcomings. But it relieves me to say that I don't think the book's key arguments have (yet) sustained any mortal wounds, even if solid blows have been landed.

The basic thesis of The Money …

The Evolution Of Entrepreneurial Finance: A New Typology, J. Brad Bernthal

Publications

There has been an explosion in new types of startup finance instruments. Whereas twenty years ago preferred stock dominated the field, startup companies and investors now use at least eight different instruments—six of which have only become widely used in the last decade. Legal scholars have yet to reflect upon the proliferation of instrument types in the aggregate. Notably missing is a way to organize instruments into a common framework that highlights their similarities and differences.

This Article makes four contributions. First, it catalogues the variety of startup investment forms. I describe novel instruments, such as revenue-based financing, which remain …

ปัญหาการตัดรายจ่ายทางธุรกิจกับรายจ่ายส่วนตัวที่มีลักษณะผสมของผู้เสียภาษีที่เป็นบุคคลธรรมดา, จักรพันธ์ ตันทะรา

Chulalongkorn University Theses and Dissertations (Chula ETD)

ในปัจจุบันมีผู้เสียภาษีที่เป็นบุคคลธรรมดาจำนวนมากที่มีเงินได้พึงประเมินตามประมวลรัษฎากรมาตรา 40 (6) (7) และ (8) โดยในการหักค่าใช้จ่ายที่เกี่ยวข้องนั้น ผู้เสียภาษีสามารถเลือกที่จะหักค่าใช้จ่ายแบบเหมา กล่าวคือ หักเป็นค่าใช้จ่ายได้ตามอัตราที่กฎหมายกำหนดไว้หรือเลือกที่จะหักค่าใช้จ่ายตามความจำเป็นและสมควรก็ได้ ซึ่งถ้าผู้เสียภาษีเลือกที่จะหักค่าใช้จ่ายตามความจำเป็นและสมควร พระราชกฤษฎีกาออกตามความในประมวลรัษฎากรว่าด้วยการกำหนดค่าใช้จ่ายที่ยอมให้หักจากเงินได้พึงประเมิน (ฉบับที่ 11) พ.ศ. 2502 ได้กำหนดให้ผู้เสียภาษีนำมาตรา 65 ทวิแห่งประมวลรัษฎากร ซึ่งแก้ไขเพิ่มเติมโดยพระราชกำหนดแก้ไขเพิ่มเติมประมวลรัษฎากร (ฉบับที่ 16) พ.ศ. 2534 และมาตรา 65 ตรี แห่งประมวลรัษฎากร ซึ่งแก้ไขเพิ่มเติมโดยพระราชกำหนดแก้ไขเพิ่มเติมประมวลรัษฎากร (ฉบับที่ 17) พ.ศ. 2540 มาใช้บังคับโดยอนุโลม แต่อย่างไรก็ดี ในกรณีที่บุคคลธรรมดาประกอบการค้าหรือธุรกิจมักจะก่อให้เกิดค่าใช้จ่ายที่มีลักษณะผสมระหว่างค่าใช้จ่ายที่มีลักษณะส่วนตัวกับค่าใช้จ่ายทางธุรกิจขึ้น เช่น ค่าใช้จ่ายที่เกิดจากการใช้บ้านทำเป็นสำนักงาน ค่าใช้จ่ายที่เกิดจากการเดินทางไปประกอบการค้าหรือธุรกิจ ค่าใช้จ่ายที่เกิดจากการนำรถยนต์ส่วนตัวเข้ามาใช้ประกอบการค้าหรือธุรกิจ ค่าความบันเทิงทางธุรกิจ และค่าใช้จ่ายของเสื้อผ้าเครื่องแต่งกาย เป็นต้น แต่บทบัญญัติตามประมวลรัษฎากรมาตรา 65 ทวิและมาตรา 65 ตรี เป็นบทบัญญัติที่กำหนดวิธีการคำนวณกำไรสุทธิของผู้เสียภาษีที่เป็นนิติบุคคลและรายจ่ายต้องห้ามที่ผู้เสียภาษีไม่สามารถที่จะนำมารวมคำนวณภาษีเงินได้นิติบุคคลเท่านั้น ไม่มีบทบัญญัติที่รองรับการปันส่วนค่าใช้จ่ายที่มีลักษณะผสมระหว่างค่าใช้จ่ายที่มีลักษณะส่วนตัวกับค่าใช้จ่ายทางธุรกิจไว้แต่อย่างใด จึงก่อให้เกิดปัญหาการปันส่วนค่าใช้จ่ายที่มีลักษณะผสมดังกล่าวขึ้น ด้วยเหตุดังกล่าวจึงต้องวิเคราะห์หาแนวทางการแก้ไขปัญหาโดยการพิจารณาหลักเกณฑ์การปันส่วนค่าใช้จ่ายตามกฎหมายไทยที่เกี่ยวข้อง และหลักเกณฑ์การปันส่วนรายจ่ายที่มีลักษณะผสมระหว่างรายจ่ายส่วนตัวกับราจ่ายทางธุรกิจของต่างประเทศ เพื่อให้ได้มีการกำหนดบทบัญญัติที่รองรับการปันส่วนรายจ่ายที่มีลักษณะผสมดังกล่าว

Bringing Human Rights Into Bilateral Investment Treaties: South Africa And A Different Approach To International Investment Disputes, Erika George, Elizabeth Thomas

Faculty Scholarship

This Article therefore begins with a discussion of the Western imperialist history underlying the pasts of China and Africa, discussing the evolution of a Chinese-African economic alliance. Next, this Article discusses the broader roles of BITs in the ISDS system within the context of Chinese and South Africa BITs. It continues with a discussion on the Southern African Development Community's Model BIT, explaining why this particular model is a step in the right direction towards the protection of human rights in all IIAs. This Article highlights the relationship between international investment law, foreign direct investment ("FDI"), BITs, and human rights, …

Corporate Governance Reform In Post-Crisis Financial Firms: Two Fundamental Tensions, Christopher Bruner

Scholarly Works

The manner in which financial firms are governed directly impacts the stability and sustainability of both the financial sector and the "real" economy, as the financial crisis and associated regulatory reform efforts have tragically demonstrated. However, two fundamental tensions continue to complicate efforts to reform corporate governance in post-crisis financial firms. The first relates to reliance on increased equity capital as a buffer against shocks and a means of limiting leverage. The tension here arises from the fact that no corporate constituency desires risk more than equity does, and that risk preference only tends to be stronger in banks, and …

Regulating Complacency: Human Limitations And Legal Efficacy, Steven L. Schwarcz

Faculty Scholarship

This Article examines how insights into limited human rationality can improve financial regulation. The Article identifies four categories of limitations—herd behavior, cognitive biases, overreliance on heuristics, and a proclivity to panic—that undermine the perfect-market regulatory assumptions that parties have full information and will act in their rational self-interest. The Article then analyzes how insights into these limitations can be used to correct resulting market failures. Requiring more robust disclosure and due diligence, for example, can help to reduce reliance on misleading information cascades that motivate herd behavior. Debiasing through law, such as requiring more specific, poignant, and concrete disclosure of …

Lessons From Case Study Of Secured Transactions With Bitcoin, Xuan-Thao Nguyen

Articles

There has been some discussion about the flaws in using secured transactions law, Article 9 of the Uniform Commercial Code (U.C.C.), to govern commercial transactions involving Bitcoins as collateral. Flaws necessitate the urgency of immediately fixing of the existing law. In the case of Bitcoins there is still much to learn about the marketplace for secured transactions with Bitcoins as collateral. The rapid change in technology, the speed of new ideas proposed, the constant announcements of adoption and adaptation of smart contracts in transactions, the volatility in cryptocurrency value, the endless reports of scams, and the rise of dark pools …

Patent Aversion: An Empirical Study Of Patents Collateral In Bank Lending, Xuan-Thao Nguyen, Erik Hille

Articles

The most valuable assets of many companies today are patents. If patents are valuable, why do banks operating across the United States refuse to lend against patents in commercial lending to reduce their risks? Lending is the primary function of banks. Yet banks have a strong aversion to accept patents as collateral, rendering the vast number of patents as idle assets. This empirical study is the first to identify the patent aversion problem as contrary to the frequent headlines of how valuable patents are to the economy. By carefully extracting relevant patent and security interest filings data and examining the …

The Weakening Of Fiduciary Law, Andrew F. Tuch

Scholarship@WashULaw

In the 1970s and 80s, as major financial institutions grew and diversified their operations, courts and scholars recognized that fiduciary law posed profound challenges for the organizational practices of these firms. The challenges were considered existential by some: firms, ultimately, would need to slim down their operations, and perhaps even need to disaggregate some units, to avoid fiduciary liability. However, since these challenges were recognized, financial conglomerates have grown massively and focused more on taking direct stakes as principals, a practice that accentuates the risk of conflicts of interest.

How were financial conglomerates able to continue growing and diversifying despite …

Your Bank May Be An International Terrorist: The Inconsistent Application Of Tort Law Principles To Financial Services Under The Anti-Terrorism Act, Elizabeth Walsh Pittman

The International Lawyer

No abstract provided.

Regulation And Deregulation: The Baseline Challenge, Kathryn Judge

Faculty Scholarship

What does it mean to deregulate? Is deregulation just about the repeal of existing rules? In a closed and static system, this definition seems apt. But what if the bounds are porous? Or the internal workings of the system are dynamic? Once a system is structured to allow the option set to change, do the proscriptions embedded in law at Time A remain the appropriate baseline? Or should the baseline evolve, recreating the balance struck at Time A given the option set that exists at Time B? What if the reasons for the balance struck at Time A are myriad, …

Naked Open Market Manipulation And Its Effects, Merritt B. Fox, Lawrence R. Glosten, Gabriel Rauterberg

Faculty Scholarship

More than 80 years after US federal law first addressed stock market manipulation, there is still dispute about manipulation law’s foundational principles; this chapter aims to provide clarity by offering an analytical framework for understanding a specific manipulation. There has been a sharp split among the federal circuits concerning manipulation law’s central question: Can trading activity alone ever be considered illegal manipulation? Economists and legal scholars do not agree on whether manipulation is possible in principle, let alone on how to address it properly in practice. The framework offered by this chapter aims to help clarify federal law and may …

Too Big To Supervise: The Rise Of Financial Conglomerates And The Decline Of Discretionary Oversight In Banking, Lev Menand

Faculty Scholarship

The authority of government officials to define and elimi­nate “unsafe and unsound” banking practices is one of the oldest and broadest powers in U.S. banking law. But this authority has been neglected in the recent literature, in part because of a movement in the 1990s to convert many supervi­sory judgments about “safety and soundness” into bright-line rules. This movement did not entirely do away with discre­tionary oversight, but it refocused supervisors on compliance, risk management, and governance – in other words, on inter­nal bank processes.

Drawing on the rules versus standards debate, this Arti­cle develops a taxonomy for parsing the …

Expectations As Property: Histories, Contexualizations, Critiques, Freya Irani, Katharina Pistor

Faculty Scholarship

The last four decades have seen an enormous expansion in the number of international investment treaties (particularly bilateral investment treaties) and in investment treaty-based arbitrations and awards. Traditionally made between capital-exporters and capital-importing states (that is, along a North-South axis), such treaties generally assure investors of one signatory state (the "home state") protection on the basis of pre-determined standards in the other signatory state or states (the "host state"). Such treaties also provide for compensation in case of breaches of these standards, and give investors recourse to arbitration in case of disputes. Given these provisions alongside arbitral treaties themselves, in …

A Bridge Over Troubled Waters - Resolving Bank Financial Distress In Canada, Janis P. Sarra

All Faculty Publications

Effective June 2017, Canada formalized its new resolution regime for “domestic systemically important banks”. This article examines the new resolution regime in the context of the early intervention program by the financial services regulator. The system offers a complex but integrated set of mechanisms to monitor the financial health of financial institutions, to intervene at an early stage of financial distress, and to resolve the financially distressed bank in a timely manner. Resolution is the restructuring of a financially distressed or insolvent bank by a designated authority. To “resolve” a bank is to use a series of tools under banking …

Dorothy Moser Medlin Papers - Accession 1049, Dorothy Moser Medlin

Manuscript Collection

(The Dorothy Moser Medlin Papers are currently in processing.)

This collection contains most of the records of Dorothy Medlin’s work and correspondence and also includes reference materials, notes, microfilm, photographic negatives related both to her professional and personal life. Additions include a FLES Handbook, co-authored by Dorothy Medlin and a decorative mirror belonging to Dorothy Medlin.

Major series in this collection include: some original 18th century writings and ephemera and primary source material of André Morellet, extensive collection of secondary material on André Morellet's writings and translations, Winthrop related files, literary manuscripts and notes by Dorothy Medlin (1966-2011), copies …

"The Essential Characteristic": Enumerated Powers And The Bank Of The United States, Richard Primus

Michigan Law Review

The idea that Congress can legislate only on the basis of its enumerated powers is an orthodox proposition of constitutional law, one that is generally supposed to have been recognized as essential ever since the Founding. Conventional understandings of several episodes in constitutional history reinforce this proposition. But the reality of many of those events is more complicated. Consider the 1791 debate over creating the Bank of the United States, in which Madison famously argued against the Bank on enumerated-powers grounds. The conventional memory of the Bank episode reinforces the sense that the orthodox view of enumerated powers has been …

"Development" Versus" Sustainable Development"?: (Re-) Constructing The International Bank For Sustainable Development, Johanna A.P. Lorenzo

Vanderbilt Journal of Transnational Law

This Article scrutinizes the potential contribution of the World Bank, as an international economic organization, to the sustainable development agenda. Analyzing the reforms in policies, procedures, and organizational structure that accompanied the Bank's involvement in ostensibly political,non-economic matters such as human rights, environmental protection, and good governance--all of which are critical components of sustainable development--this Article contends that, contrary to the so-called mission creep argument, the evolution of the Bank's mandate is legally defensible and normatively desirable. Instead of amending its constituent instrument, the Bank has optimized the teleological-evolutionary approach to treaty interpretation to expand and reconstruct its mandate in …

Sustaining The Growth Of Mobile Money Services In Developing Nations: Lessons From Overregulation In The United States, Amanda B. Kernan

Vanderbilt Journal of Transnational Law

Billions of people around the world are excluded from the formal financial system and forced to store, transfer, and borrow money by using inefficient and unsafe methods. The recent introduction of mobile money programs in developing countries is revolutionizing financial inclusion by allowing users to store and transfer money on their mobile phones, thereby eliminating the need to access a bank or an internet connection. Unfortunately, fears that these programs will be used to launder money and finance terrorism have led the international community to develop and implement restrictive anti-money laundering policies that will likely impede the growth and accessibility …

Court Capture, Jonas Anderson

Scholarly Articles in Law Reviews & Journals

Capture — the notion that a federal agency can become controlled by the industry the agency is supposed to be regulating — is a fundamental concern for administrative law scholars. Surprisingly, however, no thorough treatment of how capture theory applies to the federal judiciary has been done. The few scholars who have attempted to apply the insights of capture theory to federal courts have generally concluded that the federal courts are insulated from capture concerns.

This Article challenges the notion that the federal courts cannot be captured. It makes two primary arguments. As an initial matter, this Article makes the …