Banking and Finance Law Commons^™

Argentina: National Bank Holidays, 2001, Owen Heaphy

Journal of Financial Crises

Starting in 1991, Argentina operated a currency board regime under which the central bank guaranteed a one-to-one peg of the Argentine peso to the US dollar. But in 2001, markets became increasingly concerned that the central bank would be unable to maintain the peg and would allow the peso to devalue against the dollar. At that time, more than two-thirds of Argentine bank deposits were denominated in dollars. Throughout 2001, depositors withdrew funds from banks; by November, peso deposits had declined by more than one-third and dollar deposits had fallen by one-tenth. On November 28, 2001, the systemwide banking run …

Survey Of Bank Holidays And Fund Suspensions, Rosalind Z. Wiggins, Owen Heaphy, Anmol Makhija, Stella Schaefer-Brown, Greg Feldberg, Andrew Metrick

Journal of Financial Crises

In this paper, we analyze seven case studies involving bank holidays and two involving mutual fund suspensions produced by the Yale Program on Financial Stability. Our main purpose is to assist policymakers who are considering utilizing a bank holiday in designing the most effective program as efficiently as possible. We find that a bank holiday may be most useful when designing and implementing a comprehensive remedy to an underlying problem distressing banks, particularly when an exogenous shock rather than balance sheet weaknesses is the cause of general distress to the system. A holiday is also useful to “ring-fence” one or …

Argentina: Mutual Fund Suspensions, 2019, Owen Heaphy, Anmol Makhija

Journal of Financial Crises

With Argentina facing a liquidity crisis and collapse in demand for government debt, on Wednesday, August 28, 2019, the country's minister of economy, Hernán Lacunza, announced after markets closed that the government was extending the maturity of USD 7 billion of its short-term public debt securities, among other measures. Lacunza stated that domestic retail investors would not be subject to the terms of the maturity extension and would be paid principal and interest on the affected securities per the original maturity schedule. This announcement caused confusion about the treatment of individual investors who held the affected securities indirectly through mutual …

Han-Wei Liu & Weiping He Australian Banking And Finance Law And Regulation, Chin Seng Bryan Leow, Kwan Ho Lau

Research Collection Library

It is a near-Sisyphean feat to properly set out the myriad interlinking issues in banking and finance law within a jurisdiction, and this is before tackling the accompanying regulatory issues. Pushing that proverbial boulder up the hill requires a firm grounding in the applicable black-letter rules; a good sense of the regulatory theories adopted by the supervisory authorities; and, finally, a keen appreciation of potential problems presented by the constant stream of novel financial products (and technology). In their book Australian Banking and Finance Law and Regulation, Han-Wei Liu and Weiping He have examined the Australian position relating to the …

Beautiful Means For Nefarious Ends, Eric Wahoff

Notre Dame Journal of International & Comparative Law

This note will attempt to address the laws of art dealers and banks in a way that draws parallels with the past struggles of banks and today’s struggle in the art world to keep bad actors out. It will begin with surveying how art is currently used as a tool of criminals and the current regulatory regimes in the EU, New York, and California – the states with the most art brokers.Then the note will analyze relevant laws from the US banking industry. Finally, the note will discuss ways that banking laws that have been used to address money -laundering …

Volume 15, Issue 1 - Full Issue, Notre Dame Journal Of International & Comparative Law Volume 15

Notre Dame Journal of International & Comparative Law

No abstract provided.

Building Open Finance, Douglas W. Arner, Ross P. Buckley, Christine M. Wang, Dirk A. Zetzsche

Notre Dame Journal of International & Comparative Law

As one of the most digitalized sectors of the economy, finance is increasingly dependent on data. Over the past decade, the implementation of Open Banking and Open Finance in an increasing number of major jurisdictions around the world, including the European Union (EU), the United Kingdom (UK), Australia, Brazil, and the United Arab Emirates (UAE), seeks to break down data silos, empower consumers, and increase competition among financial service providers, aiming to maximize the value of financial data for innovation, growth, and competitiveness. In addition to mandatory requirements, other governance approaches to Open Finance, including collaborative arrangements and voluntary initiatives, …

From Promise To Performance: Reforming Blended Finance For Scale, Perrine Toledano, Ana M. Camelo Vega, Tucker Wilke

Columbia Center on Sustainable Investment

Blended finance has the potential to help close the sustainable development financing gap. Strategically combining public and philanthropic capital to unlock private investment, it has proven to be an effective tool to de-risk impact investments. But without bold, structural reform, it risks remaining a niche tool – promising in theory, underperforming in practice. Drawing on over 65 expert interviews and in-depth analysis, this report from the Columbia Center on Sustainable Investment (CCSI) maps the systemic barriers preventing blended finance from operating at scale, and outlines a practical path forward. With bold leadership and coordinated reform, blended finance can become a …

The Changing Architecture Of Trust, Kathryn Judge

Faculty Scholarship

Trust has always been vital to the healthy functioning of financial markets and the stability of the financial institutions. The mix of public and private institutions that undergird this trust, however, can vary. Often these forces are ignored or taken for granted until something goes wrong. With a marked turn toward deregulation taking hold on both sides of the Atlantic, against a backdrop of central banks having played a very active role intervening to allay distress, it is a good time to revisit these fundamentals. This essay examines the importance of trust, how it is created, how it can be …

Competition In The Global Law Market: Offshore Development Of The Statutory "Rule In Hastings-Bass", Andrew P. Morriss

Faculty Scholarship

This Article examines the competitive dynamics in the global law market through the lens of the statutory evolution of the Rule in Hastings-Bass across various International Financial Centers (IFCs). Following the UK Supreme Court's 2013 decision in Pitt v Holt and Futter v Futter, which significantly restricted the judiciary's ability to void trustee decisions under the Rule, seven IFCs (Jersey, Bermuda, The Bahamas, the Dubai International Financial Center, the Cayman Islands, and the British Virgin Islands) enacted statutes to preserve and clarify the Rule within their jurisdictions. These legislative actions highlight the strategic adaptations by IFCs to enhance their legal …

The Financial Sector And Global Dollar System, Gary Gensler, Lev Menand, Joshua Younger

Faculty Scholarship

The second Trump administration’s approach to financial markets and institutions mixes familiar deregulatory policies with a range of other policies (financial and non-financial) that are largely without precedent and may lead to significant structural change in the long term. Combined, these policies have the potential to affect the financial sector in at least four ways. First, they could threaten the foundations of the global dollar system – mutual cooperation, trust, and interdependency, both between the producers and consumers of financial instruments and among the nations that constitute the dollar bloc. Second, they may undermine financial stability by loosening prudential standards, …

Understanding Disputes Over Digitalization: A Perspective Of Cross-Border Central Bank Digital Currencies, Heng Wang

Research Collection Yong Pung How School Of Law

In a rapidly digitalizing world, complex disputes would arise due to the technological, regulatory and other complexities. Public and private actors—including central banks, financial institutions, tech firms, and law firms—need to understand the complexity of these disputes before determining whether and how to engage with ongoing digitalization. Given the fundamental role of currency in the world economy, this article examines central bank digital currency (CBDC) as a pivotal case study. CBDCs, representing the digitalization of central bank money, are a novel digital form of national currency issued by central banks. Various central banks, including those of the Eurozone, Switzerland, the …

Blueprints For The Gilded Age Of Borrowing: Theorizing Mutually Beneficial Policies For The Golden Age Of Private Credit, Sam Friedman

Brooklyn Law Review

Through financial ingenuity, lending practices often generate an indirect yet significant impact on the average person’s finances. Relatedly, the 2007–2008 Financial Crisis revealed the profound and far-reaching consequences attributable to risky lending. Congress sought to curb lenders’ risk appetite by passing the Dodd-Frank Act, legislation which commissioned new, industry-specific oversight bodies. However, this legislative antidote had a side effect: it engendered a new class of borrowers—those precluded, based on a variety of risk diagnostics, from obtaining capital from the most popular lenders. But when the conventional borrowing doors closed, private lending markets opened in earnest. Since the Covid-19 pandemic, growth …

A Warranted Bill? The Bank Merger Review Modernization Act And Its Potential Effects On The Banking Industry, Arianna Carroll

St. John's Law Review

(Excerpt)

In early 2023, three small to mid-sized banks failed, accounting for three of the largest banking failures in modern United States history. The three banks were Silicon Valley Bank, First Republic Bank, and Signature Bank, and their failures were found to be due to their lack of risk management. At the time of their respective failures, Silicon Valley Bank, First Republic Bank, and Signature Bank were large, regional banks in the United States with combined holdings of over $530 billion in assets. Their clientele were all mainly in the technology sector, including venture capitalists, cryptocurrency, and high net worth …

Applying Federal Antitrust Law To Banking Services—Noninterest-Bearing Mortgage Escrow Accounts, Maine Law Review

Maine Law Review

It is reasonable that lenders should require mortgage escrow accounts on high loan-to-value mortgages, for lenders are extending a significant amount of credit. Since a house is often the single most valuable purchase ever made by a family, that house is often the only asset of sufficient value to secure the loan. Therefore, the lender will want assurances that the value of the house will be maintained. Mortgage escrow accounts help provide that assurance by protecting against tax liens and accidental damage. But noninterest-bearing mortgage escrow accounts have recently come under fire from consumer advocates. The complaint is that the …

The Private Offering: Rule 146 And Offeree Sophistication, Maine Law Review

Maine Law Review

The fundamental premise of the Securities Act of 1933 is that protection of the investor is achieved by requiring the dissemination of information essential to an informed investment decision. Carved from this general requirement are exemptions from registration dealing with certain types of securities and transactions. This lack of clarity has created a situation in which the SEC continues to list the characteristics of a private offering while the judiciary seizes upon particular factors as determinative tests. In response to the need for "greater certainty in the application of the Section 4(2) exemption, the SEC has recently proposed Rule 146 …

Applying Federal Antitrust Law To Banking Services—Noninterest-Bearing Mortgage Escrow Accounts, Maine Law Review

Maine Law Review

It is reasonable that lenders should require mortgage escrow accounts on high loan-to-value mortgages, for lenders are extending a significant amount of credit. Since a house is often the single most valuable purchase ever made by a family, that house is often the only asset of sufficient value to secure the loan. Therefore, the lender will want assurances that the value of the house will be maintained. Mortgage escrow accounts help provide that assurance by protecting against tax liens and accidental damage. But noninterest-bearing mortgage escrow accounts have recently come under fire from consumer advocates. The complaint is that the …

The Private Offering: Rule 146 And Offeree Sophistication, Maine Law Review

Maine Law Review

The fundamental premise of the Securities Act of 1933 is that protection of the investor is achieved by requiring the dissemination of information essential to an informed investment decision. Carved from this general requirement are exemptions from registration dealing with certain types of securities and transactions. This lack of clarity has created a situation in which the SEC continues to list the characteristics of a private offering while the judiciary seizes upon particular factors as determinative tests. In response to the need for "greater certainty in the application of the Section 4(2) exemption, the SEC has recently proposed Rule 146 …

No Lawyer, No Jail: A Critical Case Study Of Pragmatism And The Flaws Of “Purposeful” Decision Making In Argersinger V. Hamlin, Alisa Smith, Sarah K. Stice

Seattle University Law Review

By releasing conference notes and internal communications, Supreme Court Justices provide insight into the otherwise private decisionmaking process, shedding light on how case outcomes and legal reasoning are framed and negotiated. The watershed case of Argersinger v. Hamlin (1972) extended the constitutional right to counsel to some, but not all, misdemeanor defendants. The case was argued twice, and the Court relied on empirical and authoritative sources to answer complex and practical questions about requiring counsel. This case study employs critical discourse analysis to uncover what influenced the Justices’ decisions and how they framed, shaped, and constructed social realities to foreground …

The Race To Erase: Destruction Of Government Documents Undermines Freedom-Of-Information Laws, Frank D. Lomonte

Seattle University Law Review

In August 2019, reporters with Chattanooga’s daily newspaper, the Times Free Press, filed what seemed to be a routine request for access to emails and other public records held by their local county government. The seemingly unremarkable request set the newspaper’s staff on a months-long journey of unpleasant surprises. The first was a demand to pay the county $717 in advance before being allowed to inspect the documents. The second was that—during prolonged haggling over the fee assessment— the county attorney’s office simply destroyed almost all of the disputed records. Third, and most glaringly, the journalists discovered that Tennessee law …