Banking and Finance Law Commons^™

China’S Currency Practices And “Currency Manipulation”: The Power Of Action In Inaction, Anthony Yu

Global Business & Development Law Journal

No abstract provided.

Behavioral Finance Before Kahneman, Richard A. Posner

Loyola University Chicago Law Journal

No abstract provided.

The D.C. Circuit Court’S Opinion In Hunter V. Ferc: A Panacea For Resolving A Jurisdictional Dispute Or Mere Panache?, 2 J. Marshall Global Mkt. L.J. 69 (2013), Matthew Kluchenek, Regina Speed-Bost, Laura Chipkin, Rachel Remke

John Marshall Global Markets Law Journal

The Commodity Futures Trading Commission (“CFTC”) and the Federal Energy Regulatory Commission (“FERC”) were in a jurisdictional tug-of-war until March 2013, when the D.C. Circuit Court of Appeals issued a much anticipated decision in Hunter v. FERC. This Article discusses the Hunter case, which offered some clarity as to the jurisdictional boundaries of the CFTC and FERC with regard to certain types of futures contracts. Historically, the CFTC has been authorized by the Commodity Exchange Act (“CEA”) to prevent and regulate fraud and manipulation in the futures market. On the other hand, FERC is an independent agency charged with the …

Transatlantic Mutual Recognition In The Field Of Global Financial Regulation, 2 J. Marshall Global Mkt. L.J. 43 (2013), Nico Klein

John Marshall Global Markets Law Journal

International cooperation and coordination among countries is a highly sought after goal for many. In that regard, in order to achieve international cooperation and coordination, this Article focuses on the concept of mutual recognition and the key areas of global financial regulatory reform to which the concept could be applied. The benefits of mutual recognition are increased market liberalization, facilitation of private cross-border movement, and increased regulatory standards. To discuss the concept of mutual recognition, this Article examines the European Union/European Economic Area approach provided by the Markets in Financial Instruments Directive (“MiFID”). This Article reviews the EU’s idea of …

Professor: Bank Rules Still Not Tough Enough, Aldemaro Romero Jr.

Publications and Research

No abstract provided.

Daniel Kahneman's Influence On Legal Theory, Russell Korobkin

Loyola University Chicago Law Journal

No abstract provided.

Buyer Beware: Electronic Letters Of Credit And The Need For Default Rules, William Patrick Cronican

McGeorge Law Review

No abstract provided.

A Complete View Of The Cathedral: Claims Of Tortious Interference And The Specific Performance Remedy In Mergers And Acquisitions Litigation, Luke Nikas, Paul B. Maslo

Michigan Business & Entrepreneurial Law Review

A bank promises to lend several billion dollars to fund a buyer’s purchase of a target company. The buyer enters into a merger agreement with the target. Thereafter, the economy plummets, and the bank decides that breaching its contract with the buyer will cost less than performing. The buyer seeks specific performance. The target also sues the bank, alleging tortious interference with the merger agreement. Billions of dollars are on the line. This is the reality lived by many investment banks that committed to fund leveraged buyouts during the recent economic downturn. Most of these matters were resolved in private …

Pitfalls In Brazilian Bankruptcy Law For International Bond Investors, Jeffrey M. Anapolsky, Jessica F. Woods

Journal of Business & Technology Law

No abstract provided.

Behavioral Economics And Investor Protection: Reasonable Investors, Efficient Markets, Barbara Black

Faculty Articles and Other Publications

The judicial view of a “reasonable investor” plays an important role in federal securities regulation, and courts express great confidence in the reasonable investor’s cognitive abilities. Behavioral economists, by contrast, do not observe real people investing in today’s markets behaving as the reasonable investors that federal securities law expects them to be. Similarly, the efficient market hypothesis (EMH) has exerted a powerful influence in securities regulation, although empirical evidence calls into question some of the basic assumptions underlying EMH. Unfortunately, to date, courts have only acknowledged the discrepancy between legal theory and behavioral economics in one situation, class certification of …

Dirty Remics, Revisited, David J. Reiss, Bradley T. Borden

Faculty Scholarship

No abstract provided.

Abandoning Foreign Depositors In A Bank Failure? The Efta Court Judgment In Efta Surveillance Authority V. Iceland, 2 J. Marshall Global Mkt. L.J. 1 (2013), Valia Babis

John Marshall Global Markets Law Journal

Deposit insurance is a key issue in bank regulation. A mismatch exists, especially in the European Economic Area, between the freedom of banks to operate across borders and the fact that deposit insurance operates on a national basis. EFTA Surveillance Authority v. Iceland examines the protection of overseas depositors in the event of a cross-border bank failure. In EFTA Surveillance Authority, the court examined a state’s responsibility to ensure compensation to depositors and possible discrimination against foreign depositors. This Article reviews the paradoxical holding by the court in light of the facts and circumstances of the case. Further, the Article …

The Future Of The Commodity Futures Market: How Customer Segregated Accounts Can Be Better Protected From Insolvent Futures Commission Merchants, 2 J. Marshall Global Mkt. L.J. 13 (2013), Zachary Brumfield

John Marshall Global Markets Law Journal

Two of the largest futures commission merchants (“FMCs”)—MF Global and Peregrine Financial Group—filed for bankruptcy in 2011 and 2012, respectively. The bankruptcies of two of the largest players in the futures commodity market shook up the industry. Many customers became weary and distrustful of FCMs. This Article proposes solutions in order to boost customer confidence in the futures market without deterring the largest futures traders. Further, this Article discusses the pitfalls of the current regulatory model with respect to customer segregated funds and the necessary changes to the current regime by the CFTC and other self-regulatory organizations. After the MF …

Financial Hospitals: Defending The Fed’S Role As Market Maker Of Last Resort, Jose M. Gabilondo

Faculty Publications

No abstract provided.

Conceptions Of Corporate Purpose In Post-Crisis Financial Firms, Christopher M. Bruner

Scholarly Articles

American "populism" has had a major impact on the development of U.S. corporate governance throughout its history. Specifically, appeals to the perceived interests of average working people have exerted enormous social and political influence over prevailing conceptions of corporate purpose - the aims toward which society expects corporate decision-making to be directed. This article assesses the impact of American populism upon prevailing conceptions of corporate purpose - contrasting its unique expression in the context of financial firms with that arising in other contexts - and then examines its impact upon corporate governance reforms enacted in the wake of the financial …

Checking Out Of The Exception To 3-104: Why Parties Should Be Able To Negotiate Whether Checks Should Be Payable On Demand, 3 Colum. J. Race & L. 73 (2013), Linda R. Crane

UIC Law Open Access Faculty Scholarship

Many aspects of American society, including its legal system, operate to the disadvantage of minorities. Obvious examples include inequities in our criminal/justice system and in school funding. Much has been written on those and other topics. This article focuses on another example, specifically on how a sweeping change to an obscure banking rule regulating the check collection process has negatively affected consumers in general, and minority groups in particular.

U.S. check collections require a complex system comprised of a variety of institutions including commercial banks, savings and loans, savings banks, and credit unions, as well as the customers who rely …

Mobile Money, Financial Inclusion And Financial Integrity: The South African Case, Vivienne A. Lawack

Washington Journal of Law, Technology & Arts

The usage of mobile banking and in particular, payments by means of mobile phones, has increased in recent years in South Africa, with consequent impacts from a legal and regulatory point of view. South Africa is a developing economy with a large “unbanked” sector. That is, a large segment of the population does not have bank accounts and “banking” happens through informal means. This Article deals with the legal and regulatory framework pertaining to mobile money and examines issues relating to financial integrity and financial inclusion as they present themselves in South Africa. The author states that the regulatory framework …

The Problem Of Holdout Creditors In Eurozone Sovereign Debt Restructuring, Mitu Gulati, Lee C. Buchheit, Ignacio Tirado

Faculty Scholarship

The Eurozone official sector has declared that the belated restructuring of Greek bonds held by private sector creditors in 2012 was a “unique and exceptional” event, never, ever to be repeated in any other Eurozone country. Maybe so. But if this assurance proves in time to be as fragile as the official sector’s prior pronouncements on the subject of “private sector involvement” in Eurozone sovereign debt problems, any future Eurozone debt restructuring will be surely plagued by the problem of non-participating creditors --- holdouts. Indeed, it is the undisguised fear of holdouts and the prospect of a messy, Argentine-style debt …

Revisiting The Leveraged Buyout: Is Constructive Fraud Going Too Far?, 46 J. Marshall L. Rev. 429 (2013), Angelo Guisado

UIC Law Review

No abstract provided.

A Balanced Budget Amendment Fit For The Constitution: The Elimination Of Partisanship And Substantive Provisions, 46 J. Marshall L. Rev. 583 (2013), Shane Nichols

UIC Law Review

No abstract provided.