Banking and Finance Law Commons^™

Costing A Pretty Penny: Online Penny Auctions Revive The Pestilence Of Unregulated Lotteries, David R. Konkel

Seattle University Law Review

Penny auctions, an online phenomenon imported from Europe, operate by the hundreds in the United States without meaningful oversight from consumer protection agencies. In a penny auction, consumers compete for items one penny at a time. To date, no significant inquiry, either academic or practical, into the legitimacy of the penny auction has occurred. Although marketed as auctions, online penny auctions may actually qualify as lotteries. Unlike the multifarious and confusing definitions of gambling, the long-accepted definition of a lottery consists of three elements: prize, consideration, and chance. If a penny auction satisfies this definition then, under well-established case law …

Is Financial Instability A Tax Problem With A Tax Solution?, Hilary Allen

Scholarly Articles in Law Reviews & Journals

Financial regulation and taxation are two fields of law that are notoriously complex and specialized. Given this circumstance, it is perhaps not surprising that financial regulators often pay little attention to tax, and focus instead on their own sphere of influence. Unfortunately, financial regulators ignore tax incentives at the peril of financial stability.

A Diamond Scheme Is Forever Lost: The Kimberley Process's Deteriorating Tripartite Structure And Its Consequences For The Scheme's Survival, Andrew H. Winetroub

Indiana Journal of Global Legal Studies

Oversight of the multi-billion dollar global diamond trade involves state actors, multinational corporations, and sophisticated civil society groups operating under the umbrella of the Kimberley Process. This unique tripartite governance structure created an opportunity for the parties to develop a system in which conflict diamonds could not enter the stream of commerce, transparency would be institutionalized, and governments and industry participants would be held to account. Yet, the successes of the Kimberley Process are increasingly jeopardized by an overly statist approach that has led to subjugation of the participating nongovernmental organizations. This note argues that for the Kimberley Process to …

Social Movements As Constituent Power: The Italian Struggle For The Commons, Saki Bailey, Ugo Mattei

Indiana Journal of Global Legal Studies

The Italian commons (beni comuni) movement is a powerful example of the way in which social movements are emerging as the new pouvoir constituant serving not only to enforce the protections and guarantees of national constitutions but also, in the context of the declining power of the nation-state, as a counter hegemonic force against the neoliberal economic constitutionalism of the international economic institutions. The common goods social movement in Italy was born out of the concerted action of a number of civil society groups combatting neoliberal privatizations. This commons movement, as will be argued in this paper, is an instance …

Transitive Counterparty Risk And Financial Contracts, Manuel A. Utset

Scholarly Publications

No abstract provided.

Corporate Culture And Erm, Michelle M. Harner

Faculty Scholarship

The attitudes and actions of those viewed as leaders within a company (commonly referred to as “tone at the top”) help to define corporate culture and are critical to implementing a successful enterprise risk management (ERM) program. This paper explores the challenges and benefits of creating a risk-aware corporate culture, including the potential legal implications for boards of directors.

Mers Remains Afloat In A Sea Of Foreclosures, Shelby D. Green

Elisabeth Haub School of Law Faculty Publications

Despite the simple premise of the MERS System, opponents--or those simply trying to invalidate or forestall enforcement of their mortgages--have leveled various challenges to MERS's practices and even its basic business model. Taking an aerial view of the challenges, it is possible to discern a certain pattern as one challenge seemed to morph into the next (often following rejection of the earlier one in the courts). Some borrowers have asserted that MERS lacked legal standing to foreclose because it was a mere nominee and not the owner of the note. Even if MERS's legal standing was upheld, borrowers pointed to …

The Uneasy Case For Deferring Banker Pay, Eric D. Chason

Faculty Publications

No abstract provided.

Reverse Regulatory Arbitrage: An Auction Approach To Regulatory Assignments, M Todd Henderson, Fred Tung

Faculty Scholarship

In the years before the Financial Crisis, banks got to pick their regulators, engaging in a form of regulatory arbitrage that we now know was a race to the bottom. We propose to turn the tables on the banks by allowing regulators, specifically, bank examiners, to choose the banks they regulate. We call this “reverse regulatory arbitrage,” and we think it can help improve regulatory outcomes. Building on our prior work that proposes to pay bank examiners for performance — by giving them financial incentives to avoid bank failures — we argue that bank supervisory assignments should be set through …

Vogtländische Straβen-,Tief- Und Rohrleitungsbau Gmbh Rodewisch (Vstr) V. Finanzamt Plauen – Vat Triangulation V. Drop Shipments, Richard Thompson Ainsworth

Faculty Scholarship

In ECJ Case 587/10 (Vogtländische Straβen-,Tief- und Rohrleitungsbau GmbH Rodewisch (VSTR) v. Finanzamt Plauen) an American firm, Atlantic International Trading Company (AIT) is a middleman in an otherwise all-European VAT triangulation. AIT appears to have approached its compliance obligations as if it was a middleman in an American drop shipment.

However, drop shipments are treated very differently from VAT triangulations.

Commercially these transactions are very similar. They are composed of two back-to-back sales, A/B followed by B/C, with a single delivery from A directly to C. This article compares the tax treatment of drop shipments under the RST with triangulation …

Leveling The International Playing Field With The Marketplace Fairness Act, Richard Thompson Ainsworth, Boryana Madzharova

Faculty Scholarship

Quill v. North Dakota unbalanced the American retail market with its preference for out-of-state over in-state sellers. The preference under Quill is that sellers without physical presence in a state cannot be compelled to collect the sales tax. If the buyer does not voluntarily remit the complementary use tax, the purchase is effectively tax-free. As a result, Quill is seen as facilitating tax avoidance and driving business to sellers who have no in-state nexus, notably e-businesses. Revenue losses are estimated in excess of $10 billion per year.

The reach of the Quill decision is international. Preferred sellers can reside just …

Show Me The Note!, Bradley T. Borden, David J. Reiss, W. Keaupuni Akina

Cornell Law Faculty Publications

News outlets and foreclosure defense blogs have focused attention on the defense commonly referred to as "show me the note." This defense seeks to forestall or prevent foreclosure by requiring the foreclosing party to produce the mortgage and the associated promissory note as proof of its right to initiate foreclosure.

The defense arose in two recent state supreme-court cases and is also being raised in lower courts throughout the country. It is not only important to individuals facing foreclosure but also for the mortgage industry and investors in mortgage-backed securities. In the aggregate, the body of law that develops as …

Show Me The Note!, William K. Akina, Bradley T. Borden, David J. Reiss

Faculty Scholarship

No abstract provided.

Cloudy Weather, With Occasional Sunshine: Consumer Loans, The Legislature, And The Supreme Court Of Japan, Shigenori Matsui

Washington International Law Journal

The Supreme Court of Japan, despite its well-known passive and conservative stance towards constitutional adjudication, occasionally shows quite a creative and liberal attitude. Recently, the Supreme Court of Japan has shown this attitude in its development of pro-consumer jurisprudence involving consumer loan cases. This development is still more noteworthy because the Supreme Court of Japan ignored the legislature’s intent to overturn its previous judgments and practically wiped out a statutory provision enacted by the legislature. As a result of this development, millions of consumers could demand refunds from consumer loan companies, and consumer loan companies went into serious financial troubles, …

Full Disclosure Of Consumer Savings Information , Vance Hartke

Pepperdine Law Review

No abstract provided.

Half-Way Mark Reached In The Demise Of The Inequitable Application Of The “Due-On-Sale” Clause, Bernard J. Koerselman

Pepperdine Law Review

No abstract provided.

The Impact Of The Equal Rights Amendment On Married Women's Financial Individual Rights , Anne K. Bingaman

Pepperdine Law Review

No abstract provided.

New Challenges To Investor's Counsel: Legal Risk Analysis And The Work-Out Perspective In Ldc Investment, Allen P.K. Keesee

Pepperdine Law Review

No abstract provided.

In Search Of A Less Tentative Totten, R. Wayne Estes

Pepperdine Law Review

No abstract provided.

Stopping Mtic — With A 3rd Invoicing Directive, Richard Thompson Ainsworth

Faculty Scholarship

A Third Invoicing Directive for the EU VAT seems to be a foregone conclusion. Corrections are needed in the Second Invoicing Directive. The hallmark of the next Directive will be its application of digital invoice technology. The Commission’s proposals will include adoption of tax-technology advances in invoice-control that are currently in use outside the EU. The next Invoicing Directive will require comprehensive e-invoicing, invoices that are digitally signed, and invoices that are fed into a system of relational databases that match transaction data across the Single Market. There will be real-time EU sales/purchases lists, and remote/real-time audit functionality.

This will …