Banking and Finance Law Commons^™

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 …

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 …

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.

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.

Finding The Pearl In The Oyster: Supercharging Ipos Through Tax Receivable Agreements, Christopher B. Grady

Northwestern University Law Review

A new, “supercharged” form of IPO has slowly developed over the last twenty years. This new form of IPO takes advantage of several seemingly unrelated provisions of the tax code to multiply pre-IPO owners’ proceeds from a public offering without reducing the amount public investors are willing to pay for the stock. Supercharged IPOs use a tax receivable agreement to transfer tax assets created by the IPO back to the pre-IPO ownership, “monetizing” the tax assets. As these structures have become more efficient, commentators have expressed concerns that these agreements deceive shareholders who either ignore or do not understand the …

Blockchain, Bitcoin, And Vat In The Gcc: The Missing Trader Example, Richard Thompson Ainsworth, Musaad Alwohaibi

Faculty Scholarship

Blockchain is coming to tax administration and will cause fundamental change. This article considers the potential for blockchain technology as it applies to the introduction of a value added tax in the Gulf Cooperation Council.

Blockchain technology disrupts centralized ledgers. Blockchain improves efficiency, security and transparency. Perhaps no centralized ledger system presents more challenges than that of the modern tax administration. The central data storage system of a modern tax authority contains all return, payment, and audit activity for all taxpayers arranged tax-by-tax for three years or longer periods of time.

It is likely that blockchain will come first to …

Irs's Cp-2000 E-Mail Scams - Never In Dubai - Common In Canada & The Uk, Richard Thompson Ainsworth

Faculty Scholarship

On September 22, 2016 the Internal Revenue Service (IRS) and its Security Summit partners issued an alert to taxpayers and tax professionals to be on guard against fake e-mails purporting to contain a tax bill related to the Affordable Care Act. Surprisingly, this e-mail scam works. It really should not.

Modern technology is facilitating many contemporary tax scams. In recent years the US has seen false (refund) return scams, phone scammers impersonation IRS agents, and now e-mail scams with fraudulent CP-2000 notices attached to a demand for payment. The same phone and e-mail frauds have appeared in both Canada and …

Bitcoin Versus Regulated Payment Systems: What Gives?, Lawrence J. Trautman, Alvin C. Harrell

Cardozo Law Review

The article explores the evolution and challenges of virtual currencies like Bitcoin, highlighting their potential to transform traditional payment systems while posing significant regulatory and jurisdictional difficulties. It argues that while virtual currencies offer benefits such as reduced transaction costs and financial inclusion, their decentralized nature and association with illicit activities necessitate a balanced approach to regulation. The article emphasizes the importance of adapting legal frameworks to accommodate innovation while addressing risks, ensuring a stable environment for virtual currencies to coexist with traditional monetary systems.

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. …