Banking and Finance Law Commons^™

Challenges Under Truth In Lending: Suing For Rescission, Giving Clear And Conspicuous Notice, And Electing Not To Rescind, Elwin Griffith

Akron Law Review

This Article reveals that the uniformity sought by Congress through TILA has challenged the courts to clarify the relationship between a notice of rescission and a suit for rescission, the relevance of the consumer’s ability to tender the loan principal, and the difficulty of recognizing a creditor’s attempt to accommodate a consumer’s premature election not to cancel a transaction.

Loan Workouts, Superfund, And Lender Liability: De Minimis Settlements - The "Magic Bullet"?, Timothy J. Szuhaj

Akron Law Review

This article will focus on whether there is a practical solution for reconciling this clash between creditors' rights and environmental liability. In an effort to provide a tangible basis for critical analysis, the following hypothetical situation will be employed throughout this article. This hypothetical is intended to demonstrate a generic two party loan situation. Although this model may be an oversimplification, its basic assumptions adequately provide the basis for analysis.

A.E. Staley Maunufacturing Co. V. Commissioner: Life After Indopco: Tax Treatment Of A Target Corporation's Unsuccessful Hostile Tender Offer Defense Fees, Corinne E. Anderson

Akron Law Review

One specific concern was whether the INDOPCO decision represented a per se rule that takeover-related expenses must always be capitalized. The recent Seventh Circuit decision of A.E. Staley Manufacturing Co. v. Commissioner appears to have answered this question in the negative. In Staley, the Court of Appeals held that the majority of investment banker fees paid in an unsuccessful attempt to defeat a hostile tender offer were deductible as "ordinary and necessary" business expenses. Alternatively, those expenses allocable to the company's unsuccessful efforts to engage in alternate transactions were deductible as "abandoned transactions. ' However, fees paid by Staley to …

Buckley V. Valeo, Political Disclosure And The First Amendment, Trevor Potter

Akron Law Review

Put differently, the reality is that disclosure’s constitutional status is unclear. The Supreme Court’s jurisprudential framework is often unpredictable. Even when the Court has been consistent in choosing a formal framework with which to approach disclosure laws, it has been inconsistent and unpredictable in applying that framework. To be sure, this issue takes on particular urgency in light of the importance both sides in the campaign finance debate attach to disclosure of campaign spending (however differently defined), and the existence of the Internet as a vehicle for immediate mass dissemination of information required to be reported. Accordingly, providing an overview …

Challenging Buckley V. Valeo: A Legal Strategy, John C. Bonifaz, Gregory G. Luke, Brenda Wright

Akron Law Review

In its 1976 ruling in Buckley v. Valeo, the United States Supreme Court sanctioned a system of unlimited campaign spending in federal elections. Since that ruling, this nation has witnessed an explosion of political expenditures. The 1996 election cycle marked the most expensive election in U.S. history, with congressional and presidential candidates spending a total of more than $2 billion. Campaign spending has also dramatically risen in state and local elections across the country. Unlimited spending poses a serious threat to our democratic process. It undermines public confidence in our elections and in our democratic institutions. It presents an increased …

Summary Of C. Nicholas Pereos, Ltd. V. Bank Of America, N.A., 131 Nev. Adv. Op. 61553 (July 2, 2015), Stacy Newman

Nevada Supreme Court Summaries

The Court considers an appeal from a district court summary judgment in a tort case concerning losses sustained due to unauthorized activity in a customer’s bank account. The Court reversed the grant of summary judgment because genuine issues of material fact exist regarding whether respondent Bank of America acted reasonably in delivering bank statements, and also because the appellant’s suit was not time barred under a one year period of repose.

The Role Of Central Banks In Global Austerity, Timothy A. Canova

Indiana Journal of Global Legal Studies

The literature on austerity, by scholars and policymakers alike, has largely downplayed the important role of central banks in designing and implementing global austerity both before and since the 2008 financial crisis. This article considers how and why the world's leading central banks display an inherent bias toward austerity. As central banks have become increasingly influenced and even captured by large private banks and financial institutions, they have pursued policy agendas that favor those same private interests. The structure of the U.S. Federal Reserve suggests a central bank that has been captured by design and is rife with inherent conflicts …

Custodial Collies Of Transparency-The Competitive Advantage Of Protecting Investing Lamm[Bs] From Advising Wolves: Lamm V. State Street Bank & Trust, Steven L. Jones

Mercer Law Review

Unscrupulous investment advisers who defraud their unsuspecting clients are increasingly prevalent in our society. Consequently, investors must be increasingly vigilant to protect themselves from such individuals. A custodial bank is one way investors can prevent mismanagement and misuse of funds and securities they entrust to financial advisers. However, the United States Court of Appeals for the Eleventh Circuit opinion Lamm v. State Street Bank & Trust illustrates that the mere presence of a custodial bank does not adequately insulate investors from fraudulent adviser activity. Under current Securities and Exchange Commission (SEC) regulations, specifically 17 Code of Federal Regulations (C.F.R.) Section …

Recursive Collective Actions Problems: The Structure Of Procyclicality In Financial And Monetary Markets, Macroeconomies And Formally Similar Contexts, Robert C. Hockett

Cornell Law Faculty Publications

The hallmark of a collective action problem is its aggregating multiple individually rational decisions into a collectively irrational outcome. Arms races, “commons tragedies” and “prisoners’ dilemmas” are well-known, indeed well-worn examples. What seem to be less widely appreciated are two complementary propositions: first, that some collective action problems bear iterative, self-exacerbating structures that render them particularly destructive; and second, that some of the most formidable challenges faced by economies, societies, and polities are iteratively self-worsening problems of precisely this sort. Financial markets, monetary systems and macroeconomies in particular are rife with them – as are other complex systems subject to …

Finding A Financial Planner, Emily G. Brown Jd

Pension Action Center Publications

This fact sheet provides information on how to find the right financial planner to help you meet your retirement planning goals. This fact sheet suggests things to consider prior to picking a financial planner and answers questions like:

• What do financial planners do?
• How do you know if you need a financial planner?
• How do you find the right financial planner?
• What type of professional title does a financial planner have?

Franchisees In A Fringe Banking World: Striking The Balance Between Entrepreneurial Autonomy And Consumer Protection, Robert W. Emerson

Akron Law Review

This Article considers fringe banking issues—the gaps or problems in service for both individuals and businesses when the usual banking channels are impractical or even unavailable. Some people may only have recourse to the robust, but often very expensive and less protected, financial products sold for what is, or is supposed to be, a very shortterm basis. The Article first examines the fringe banking world, but ultimately considers whether and how consumer protections are needed for franchisees. Small businesses, including franchisees, are often the forgotten players in the fringe economy. If a franchise actually engages in selling fringe banking products, …

Not So Secure: Should Social Security Benefits Be Considered In The Good Faith Analysis Under 11 U.S.C. § 1325(A)(3)?, Casey J. Davis

Akron Law Review

Part II of this Comment provides background information about Chapter 13 bankruptcy. This section is important because it provides a foundation for the remainder of this Comment. Part III of this Comment explores the source of this split and how the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA”) has affected this issue. Within Part III, this Comment will discuss why Congress enacted BAPCPA, the largest overhaul of bankruptcy law since its origin, and why BAPCPA did not affect the good faith requirement under § 1325(a)(3) even though BAPCPA drastically altered bankruptcy law. In addition, this section also …

A Good Rule, Poorly Written: How The Financial Crisis Highlighted The Inadequacy Of Iolta Rate Rules, Andrew Arthur

Catholic University Law Review

Interest on lawyer trust accounts (IOLTA) provide a substantial component of funding that is used to provide legal aid to needy individuals throughout the United States. However, IOLTA program revenues fluctuate with the deposit interest rates, which have remained near zero after the onset of the 2008 global financial crisis. The Comment examines IOLTA rate rules across the country, and the impact of reduces IOLTA revenues on legal aid programs. The Comment further asserts that IOLTA rate rules are not adequately designed to account for fluctuation in central bank interest rates, causing unanticipated problems for legal aid funding. Finally, the …

The Art Of A Loan: “When The Loan Sharks Meet Damien Hirst’S ‘$12-Million Stuffed Shark’”, Valerie Medelyan

Pace Law Review

Part I of this Article introduces the reader to the typical types of loans that banks make, includes an in-depth description of a secured loan, and finishes with a discussion of the due diligence requirements of banks. Part II identifies the unique complexities posed by art when it is used as collateral, comparing and contrasting the banks’ process when approving a loan secured by commonly-used assets versus a loan secured by art. Part III discusses the banks’ growing willingness to approve art-backed loans, and identifies the safeguards built into such deals. Part IV introduces the sub-prime lenders of the art …

The Enforcers & The Great Recession, Mark Totten

Cardozo Law Review

No one played a more vital role responding to the worst economic crisis since the Great Depression than a small band of state attorneys general (AGs). Yet this story has never been told nor its implications considered. For more than a decade these AGs brought enforcement actions across the residential mortgage lending industry, reaching the origination, servicing, and securitization processes. From roughly 2000 to 2008, they targeted several of the largest subprime lenders for predatory and discriminatory lending. And they moved in the face of federal inaction - at times, even opposition. With the economic crisis everywhere visible by early …

Payday Lenders, Vehicle Title Loans, And Small-Value Financing: The Cfpb's Proposal To Regulate The Fringe Economy, Christopher K. Odinet

Faculty Scholarship

The market for payday lenders, businesses that provide vehicle title loans, and other small-value financing players is rife with controversy. Some see them as predatory lenders that weave a web of never-ending debt designed to capture the weakest and most economically vulnerable of society. However, advocates of these financial institutions argue that for many Americans who are otherwise shut out of the conventional lending market, these players provide the only viable source of credit in times of economic hardship. Whatever the view, these businesses, their borrowers, and the credit markets that they together comprise are often referred to in legal …

The Development Of Foreign Investment Law In Egypt And Its Effect On Private Foreign Investment, George E. Bushnell Iii

Georgia Journal of International & Comparative Law

No abstract provided.

The Federal Reserve And A Cascade Of Failures: Inequality, Cognitive Narrowness And Financial Network Theory, Emma Coleman Jordan

Georgetown Law Faculty Publications and Other Works

The recent financial crisis hollowed out the core of American middle-class financial stability. In the wake of the financial crisis, household net worth in the U.S. fell by 24%, for a loss of $16 trillion. Moreover, retirement accounts, the largest class of financial assets, took a steep drop in value, as did house prices, and these two classes of assets alone represent approximately 43% of all household wealth. The losses during the principal crisis years, 2007–2009, were devastating, “erasing almost two decades of accumulated prosperity,” in the words of a 2013 report. By the Federal Reserve. Beyond these direct household …

Credit Rating Agency Review Board: The Challenges And Implications Of Implementing The Franken-Wicker Amendment To Dodd-Frank, Christopher R. Dyess

The Journal of Business, Entrepreneurship & the Law

The purpose of this paper is to analyze, critically review, and determine whether a hypothetical credit rating agency board, as suggested in the Franken-Wicker Amendment to the Dodd-Frank Act, is a viable option for combating the conflict of interest problem between credit rating agencies and issuers. Research methodology includes a careful review of various ways to structure the board and the potential unintended consequences of doing so. The Author uses original research hand-collected from video of the Credit Ratings Roundtable conducted in Washington D.C. on May 14, 2013. The Credit Ratings Roundtable brought together experts from the credit rating industry …

Investing And Pretending, Anita Krug

All Faculty Scholarship

One of the more prominent components of Dodd–Frank’s regulatory changes was Title VII, providing for the regulation of the over-the-counter derivatives known as “swaps.” A swap is a financial instrument whose value is based on an asset—the “reference asset”—that is wholly unrelated to the swap itself. Although there was much ado about swap regulation immediately after Dodd–Frank’s enactment, the same cannot be said of the many rules that the Commodity Futures Trading Commission (“CFTC”) has subsequently adopted pursuant to its authority under Title VII. This Article critically evaluates the CFTC’s “swap rules” and identifies the regulatory vision that they reflect. …