Banking and Finance Law Commons^™

The Community Reinvestment Act: Guilty, But Not As Charged, Raymond H. Brescia

St. John's Law Review

(Excerpt)

With the goals of assessing the state of the research on the CRA and drawing some insights into what reforms this research suggests, this Article proceeds as follows. Part I provides an overview of the CRA's structure and reach. Part II provides an overview of the impact of the financial crisis on low- and moderate-income communities, particularly communities of color. Part III assesses the current state of the research, with particular emphasis on the NBER report described above. Part IV identifies the disconnect between the CRA's reach and its goals given the current state of banking and makes suggestions …

If The U.S. Government Treated Poor People As Well As It Treats Banks, Mehrsa Baradaran

Popular Media

One of the great ironies in modern America is that the less money you have, the more you pay to use it. The country’s “unbanked” must pay high fees to fringe banks to turn their paychecks into cash, pay their monthly bills, or send money to a spouse or a child. The unbanked pay much of their income—up to 10 percent—just to use their money. For these families, the total price of simple financial services each month is more than they spend on food. Indeed, it is very expensive to be poor. This article makes a proposal, transform underused post …

Unfair Practices And Practicing Attorneys: Should The Fair Debt Collection Practices Act Apply To Communications Between Debt Collectors And Debtors' Attorneys?, Yosefa A. Englard

St. John's Law Review

(Excerpt)

This Note proceeds in three parts. Part I discusses the history of the Act and Congress's intent behind its enactment. Part I also analyzes some of the Act's provisions relating to debt collectors. Part II examines in detail the three current approaches taken by the circuit courts for determining the applicability of the Act to communications between debt collectors and debtors' attorneys. Part III argues that none of the current approaches appropriately resolves the issue. Additionally, Part III proposes a simple two-step inquiry for courts to employ when attempting to resolve whether communications toward a debtor's attorney are actionable …

Business Law Bulletin, Fall 2015

Business Law Bulletin

No abstract provided.

The Vanishing Supervisor, James A. Fanto

Faculty Scholarship

No abstract provided.

Application Of The Federal Mail And Wire Fraud Statutes To Criminal Liability For Stock Market Insider Trading And Tipping, William K.S. Wang

University of Miami Law Review

SEC Rule 10b-5 covers a great deal of stock market insider trading and tipping, but certainly not all. For insider trading defendants, some elements of criminal liability may be different and possibly easier to satisfy under mail/wire fraud than under SEC Rule 10b-5 (e.g., materiality, and the requirements for tipper and tippee liability recently tightened for Rule 10b-5 by the Second Circuit). Generally, courts have not addressed these possible differences.

With insider trading and tipping, the victim of mail/wire fraud could be either the information-owner or the party on the other side of the transaction. The courts have not examined …

Mandatory Arbitration In Consumer Finance And Investor Contracts, Michael S. Barr

Articles

Mandatory pre-dispute arbitration clauses are pervasive in consumer financial and investor contracts—for credit cards, bank accounts, auto loans, broker-dealer services, and many others. These clauses often ill serve households. Consumers are typically presented with contracts on a “take it or leave it” basis, with no ability to negotiate over terms. Arbitration provisions are often not clearly disclosed, and in any event are not salient for consumers, who do not focus on the importance of the provision in the event that a dispute over the contract later arises, and who may misforecast the likelihood of being in such a dispute. The …

David Versus Goliath And Multilateral Diplomatic Negotitations In The 21st Century: How The Greek Debt Crisis Negotiations Marked The Revenge Of Goliath, Avnita Lakhani

Cardozo Journal of International and Comparative Law

The purpose of this article is to analyze the manner in which negotiations pertaining to the Greek debt crisis were conducted and whether there are lessons to be learned in terms of effective negotiation techniques, a mutually sound negotiated agreement, and whether the recently-announced 'unanimous agreement' between the European Union Council members to support a three-year European Stability Mechanism (ESM) programme for Greece has any prospects for success.

The central questions that this article aims to analyze are whether, from the perspective of well-established negotiation theory and practice, there a win-win solution for Greece, its creditors, and the European Union, …

Coordination And Conflict: The Persistent Relevance Of Networks In International Financial Regulation, Robert B. Ahdieh

Faculty Scholarship

Over the last two decades, scholarly enthusiasm about transnational regulatory networks has seen something of a boom-and-bust cycle. Such networks – informal groupings of mid-level national officials, convened to develop nonbinding “soft law” norms of behavior in specialized fields of regulation – were identified as an important new phenomenon, were studied widely, and came to be seen as central pillars of the international legal order, especially in financial regulation. Yet today, regulatory networks go largely unmentioned in polite academic conversation: a kind of “he-who-must-not-be-named” of international law.

Among the many critiques of transnational networks that have contributed to this decline …

From Fedspeak To Forward Guidance: Regulatory Dimensions Of Central Bank Communications, Robert B. Ahdieh

Faculty Scholarship

In the face of the financial crisis that engulfed the globe beginning in 2007, the U.S. Federal Reserve quickly found itself without the key lever of monetary policy on which it had traditionally relied: short-term interest rate adjustments designed to move long-term rates, and thereby expected levels of lending, investment, and capital retention. By late 2008, short-term rates were already close to zero, yet unemployment remained strikingly high – with no sign of any likely renewal of bank lending or commercial investment.

Famously, the Fed embraced so-called quantitative easing – the purchase of massive volumes of public and private debt …

Shut The State Court's Doors: Diversity Jurisdiction Over National Banks In The Ninth Circuit's Rouse V. Wachovia Mortgage, Fsb, Melissa Siravo Hensinger

Villanova Law Review (1956 - )

No abstract provided.

Postal Banking: A Lifesaver For America's Poor, Mehrsa Baradaran

Popular Media

If banks are not providing credit to the poor, the state should provide it directly.The existing post office framework represents the most promising path toward effectuating such a public option. American banks long ago deserted their most impoverished communities, but post offices, even two centuries later, have remained — still rooted in an egalitarian mission. There have never been barriers to entry at post offices, and their services have been available to all, regardless of income.

Local Government Finance As Integrated System: The Uneasy Case For Using Special Districts In Real Estate Finance (A Response To Odinet’S Super-Liens To The Rescue? A Case Against Special Districts In Real Estate Finance), Darien Shanske

Washington and Lee Law Review Online

Local governments have long used special financing districts to build infrastructure. If a local project, say building a pocket park, is likely to increase the values of properties very close to the park, then why should those properties not pay for the park in the first place? Though efficient and fair in many cases, the use of these districts can also be problematic. For instance, it seems likely that wealthier residents, with higher property values to leverage, are especially likely to use these districts effectively. It has also been the case that developers have used these districts speculatively, which had …

Response To Christopher Odinet, Super- Liens To The Rescue? A Case Against Special Districts In Real Estate Finance, Peter W. Salsich Jr.

Washington and Lee Law Review Online

No abstract provided.

Confounded Collectors, Confused Consumers: Time To Close The Circuit Split On Whether The Fair Debt Collection Practices Act Requires A Consumer To Dispute A Debt In Writing, Daniel O'Connell

Catholic University Law Review

The Fair Debt Collection Practices Act (FDCPA) provides that a debt collector must notify a consumer that it will assume a debt to be valid unless the consumer challenges the debt within thirty days. The FDCPA does not explicitly require the consumer to challenge the debt in writing. The Third Circuit requires written disputes, while the Second, Fourth, and Ninth Circuits permit oral disputes. This Comment discusses the reasoning and conclusions at play in this circuit split. The Comment argues that while both sides of the debate present meritorious arguments, permitting oral disputes for purposes of rebutting the debt collector’s …

The Surety's Exposure For Wages And Related Liabilities, Lisa D. Sparks, Marc A. Campsen

All Faculty Scholarship

A surety faces potential exposure to a multitude of liabilities under payment and performance bonds issued for state and federally funded bonded projects as well as from the express obligations imposed by private common law performance and payment bonds. This paper, however, focuses only on a surety’s potential exposure for wage and related liabilities.

Under federal law, a surety faces possible liability under a Miller Act Payment Bond to laborers for the bonded principal’s failure to pay wages. Union trusts may also recover against a surety under a Miller Act Payment Bond for the bonded principal’s failure to remit union …

Drafting And Securitizing Participation Mortgages: A Re-Introduction, Spencer J. Coopchik, Yildiray Yildirim

The Journal of Business, Entrepreneurship & the Law

This Paper will reintroduce, explore, and expand on the financing arrangement known as a Participation Mortgage. First, this Paper will cover the features, history, and policy purposes behind the mortgage. Second, the Paper will focus on legal mechanics and drafting considerations of Participation Mortgages, so they may later be securitized. Finally, the Paper will explore the possibility and legality of creating Participation Mortgaged Backed Securities to be sold in the secondary market.

Transferring Nonnegotiable Mortgage Notes, Dale A. Whitman

Florida A & M University Law Review

This article reviews what we know about transferring ownership and the right of enforcement of nonnegotiable notes. The focus will be on notes secured by mortgages, since this is likely the context in which most modern nonnegotiable notes are created. There has been a vast amount of litigation about the transfer of negotiable mortgage notes in the past half decade, greatly expanding our understanding, but there has been little development involving nonnegotiable notes. Hence, it is helpful to compare negotiable and nonnegotiable notes, with particular emphasis on how each is transferred. Perhaps ironically, this means that the bulk of this …

The Systematic Risk Of Private Funds After The Dodd-Frank Act, Wulf A. Kaal

Michigan Business & Entrepreneurial Law Review

The Financial Stability Oversight Council (FSOC) was created under the Dodd-Frank Act with the primary mandate of guarding against systemic risk and correcting perceived regulatory weaknesses that may have contributed to the financial crisis of 2008-2009. The Securities and Exchange Commission (SEC) collects data pertaining to private fund advisers in order to facilitate FSOC’s assessment of non-bank financial institutions’ potential systemic risks. Evidence that the SEC’s data collection encounters accuracy and consistency problems might hamper FSOC’s ability to evaluate the systemic risk of private fund advisers. The author shows that while the SEC’s data plays a crucial role in all …

Trust And Control: The Value Effect Of Venture Capital Term Sheet Provisions As Risk Allocation Tools, Jason M. Gordon, David Orozco

Michigan Business & Entrepreneurial Law Review

The parties to a venture funding agreement are in a state of coopetition. The parties account for perceived risk in the entrepreneur-investor relationship through varying levels of control demanded from and trust afforded to the other party. The level of risk perceived by each party may differ along individual aspects of the prospective equity deal. The provisions of the term sheet delineate the subjective risk perceptions of each party to the transaction by allocating control or trusting a party with decision-making rights. When negotiating term sheet provisions, a party should seek to understand and recognize the risk perceived by the …