Banking and Finance Law Commons^™

Complex Financial Institutions And Systemic Risk, Utset A. Utset

Georgia Law Review

Modern financial institutions are large, complex, and
highly interconnected. In the wake of the financial crisis
of 2007-2009, commentators and policymakers have given
considerable attention to large institutions, particularly
those that can become "too-big-to-fail." This Article takes

a novel approach to this general problem. It begins by
asking a foundational question: given the extraordinary
volume of transactions between large, complex
institutions, what mechanisms do they use to protect
themselves from the risks created by their complexity, and
how do those mechanisms affect the stability of the
financial system? To keep the problem manageable, the
Article focuses on one type of …

Credit Derivatives, Leverage, And Financial Regulation's Missing Macroeconomic Dimension, Erik F. Gerding

Publications

Of all OTC derivatives, credit derivatives pose particular concerns because of their ability to generate leverage that can increase liquidity - or the effective money supply - throughout the financial system. Credit derivatives and the leverage they create thus do much more than increase the fragility of financial institutions and increase counterparty risk. By increasing leverage and liquidity, credit derivatives can fuel rises in asset prices and even asset price bubbles. Rising asset prices can then mask mistakes in the pricing of credit derivatives and in assessments of overall leverage in the financial system. Furthermore, the use of credit derivatives …

Those Who Ignore The Successes Of The Past Suffer Recurrent, Intensifying Crises, William K. Black

Faculty Works

No abstract provided.

Greene V. Fisher: Will The Aedpa Trump Uniformity And Equity In Constitutional Decision Making, Sean O'Brien

Faculty Works

No abstract provided.

Meaningful Good Faith: Managerial Motives And The Duty To Obey The Law, Peter C. Kostant

NYLS Law Review

No abstract provided.

Director Liability For Corporate Crimes: Lawyers As Safe Haven?, John A. Humbach

NYLS Law Review

No abstract provided.

Duty Of Obedience: The Forgotten Duty, Alan R. Palmiter

NYLS Law Review

No abstract provided.

The Role Of Good Faith In Delaware: How Open-Ended Standards Help Delaware Preserve Its Edge, Renee M. Jones

NYLS Law Review

No abstract provided.

What Directors Do (And Fail To Do): Some Comparative Notes On Board Structure And Corporate Governance, Simon Deakin

NYLS Law Review

No abstract provided.

The Short, But Interesting Life Of Good Faith As An Independent Liability Rule, Robert B. Thompson

NYLS Law Review

No abstract provided.

Good Faith In Revlon-Land, Christopher M. Bruner

NYLS Law Review

No abstract provided.

Producing Corporate Text: Courtrooms, Conference Rooms, And Classrooms, Mae Kuykendall

NYLS Law Review

No abstract provided.

Deconstructing Lyondell: Reconstructing Revlon, Lawrence Lederman

NYLS Law Review

No abstract provided.

Good Faith After Disney: Justice Berger’S Closing Discussion, Carolyn Berger

NYLS Law Review

No abstract provided.

Extending The Fraud-On-The-Market Presumption Beyond Basic: A Case Of Poor Analogies And Over-Eager Courts, Dana Lai

NYLS Law Review

No abstract provided.

When Responsive Legislation Ignores The Forest For The Trees, Matthew G. Curtis

Richmond Journal of Global Law & Business

No abstract provided.

Arab Spring Brings Winds Of Change To The Maghreb And Mena Region: Does That Spell Opportunity For Infrastructure Development And Project Finance?, Silvano Domenico Orsi

Richmond Journal of Global Law & Business

No abstract provided.

Chasing The Greased Pig Down Wall Street: A Gatekeeper’S Guide To The Psychology, Culture And Ethics Of Financial Risk-Taking, Donald C. Langevoort

Georgetown Law Faculty Publications and Other Works

The current financial crisis has once again focused attention on lawyers, corporate directors and auditors as gatekeepers, who are expected to introduce some degree of cognitive independence to the task of risk assessment and risk management in public companies, including financial services firms. This essay examines the psychological and cultural forces that may distort risk perception and risk motivation in hyper-competitive firms, beyond the standard economic incentives associated with agency costs and moral hazards, warning gatekeepers against too easily assuming that all is well when insiders display high levels of intensity, focus and devotion to hard-to-achieve goals. In fact, these …

Wall Street As Community Of Fate: Toward Financial Industry Self-Regulation, Saule T. Omarova

Cornell Law Faculty Publications

This Article proposes an approach to regulatory design that aims to create structural incentives for the emergence of a new model of embedded self-regulation in the financial industry. Without a doubt, the ideas laid out in this Article are more of a thought experiment than a polished set of fully developed regulatory proposals. These ideas and suggestions need a great deal of additional thought and a deeper, more granular and rigorous analysis of their potential consequences, benefits, and costs. Moreover, this Article explores only how to create conditions conducive to the emergence of comprehensive industry self-regulation that is embedded in …

Destructive Coordination, Charles K. Whitehead

Cornell Law Faculty Publications

An important goal of financial risk regulation is promoting coordination. Law's coordinating function minimizes costly conflict and encourages greater uniformity among market participants. Likewise, privately developed market standards, such as standard-form contracts and rules incorporated into widely-used vendor technology systems, help to lower transaction costs partly by increasing coordination.

By contrast, much of financial economics is premised on a world without coordination. Basic tools used to manage financial risk presume that changes in asset prices follow a random walk and individuals buy and sell assets independently. Thus, a bedrock premise of traditional risk management is that a portfolio manager’s actions …