Banking and Finance Law Commons^™

The Magic Of Money And Banking, Eric J. Gouvin

Faculty Scholarship

This chapter analyzes the banking system in the wizarding world of Harry Potter and compares it to the salient features of the banking system in the Muggle world. The chapter begins with a brief history of money. Although the economies in both the wizarding world and the Muggle world use money, there are striking differences between those worlds on this point. We can only speculate on why these differences exist, but it appears that the wizard concept of money stopped evolving in the Middle Ages, when bankers were really just trusted keepers of valuables. The chapter concludes that although Muggle …

Ask The Professor: Portfolio Margining – How Will Dodd-Frank Impact Its Utilization?, Ronald Filler

Articles & Chapters

This article analyzes the background and current status of portfolio margining, how it has evolved over the past several years, and how the recent Dodd-Frank Act will impact its utilization and effectiveness. Portfolio margining allows a broker-dealer to analyze a client's total overall portfolio from a risk-based analytical model, establishing the proper minimum initial margin requirements for the entire portfolio applying certain parameters. To be a more effective tool, changes to the U.S. Bankrupcty Code were needed. The Dodd-Frank Act made those legislative changes. It's now up to the regulators to make portfolio margining an even more effective and utilized …

The Specter Of Sisyphus: Re-Making International Financial Regulation After The Global Financial Crisis, Yesha Yadav

Vanderbilt Law School Faculty Publications

The global financial crisis is forcing a thorough re-evaluation of the international regulatory architecture. The crisis has shown not only the cracks in regulatory oversight, but also a market operation that had long outgrown and outwitted its overseers. This Article has argued that the international financial market may be seen as having its own distinct personality, the recent expansion bringing with it a unique set of regulatory risks. Accordingly, just as with domestic regulatory systems, the regulation of the international financial marketplace ought to be rooted in the legal and economic rationales that have been advanced in support of financial …

Fannie Mae And Freddie Mac: Creatures Of Regulatory Privilege, David J. Reiss

Cornell Law Faculty Publications

This book chapter addresses the appropriate role of Fannie Mae and Freddie Mac, the government-chartered, privately owned mortgage finance companies, in the United States housing finance sector. The federal government recently placed Fannie and Freddie in conservatorship. These two massive companies are profit-driven, but as government-sponsored enterprises they also have a government-mandated mission to provide liquidity and stability to the United States mortgage market and to achieve certain affordable housing goals. How the two companies should exit their conservatorship has implications that reach throughout the global financial markets and are of key importance to the future of American housing finance …

Rethinking The Future Of Self-Regulation In The Financial Industry, Saule T. Omarova

Cornell Law Faculty Publications

In today's post-crisis world, arguing in favor of self-regulation in the financial services industry is sure to raise many eyebrows and invite significant disagreement. Much of the skepticism in this respect may be fully justified: the lack of truly effective incentives or political obstacles may ultimately foreclose the possibility of creating a new regime of embedded self-regulation aimed at detection and prevention of systemic financial risks. Nevertheless, as this Article sought to demonstrate, the realities of today's financial marketplace make it critically important that we give the idea of industry self-regulation a full consideration.

The main goal of this Article …

Just Say No (To American Capitalism): Why American Indians Should Reject The Model Tribal Secured Transactions Act And Other Attempts To Promote Economic Assimilation, Aaron Drue Johnson

American Indian Law Review

No abstract provided.

Ask The Professor: How Does The U.K. Client Money Rules Differ From The U.S. Customer Segregated Rules When The Custodian Firm Fails To Treat Customer Property Properly?, Ronald Filler

Articles & Chapters

No abstract provided.

Counterparty Regulation And Its Limits: The Evolution Of The Credit Default Swaps Market, Houman B. Shadab

Articles & Chapters

Over-the-counter (OTC) derivatives are widely regarded as “unregulated” financial instruments. While it is true that OTC derivatives are subject to relatively minimal federal regulation, OTC derivatives are in fact subject to a robust form of control and governance in the form of counterparty regulation. Counterparty regulation arises when two or more parties are continually exposed to counterparty credit risk for the duration of a long-term contract, and it consists of specific governance mechanisms such as the daily adjustment of collateral and the netting out of redundant trades. Counterparty regulation governs derivatives transactions but not securities transactions.

This essay reviews recent …

Wasting The Corporate Waste Doctrine: How The Doctrine Can Provide A Viable Solution In Controlling Excessive Executive Compensation, Steven Clayton Caywood

Michigan Law Review

In the midst of the global recession of the late 2000s, there was an outcry against corporate executives and what the public deemed to be their excessive compensation. Although this anger is still featured in today's headlines, it is nothing new. In fact, excessive executive compensation complaints arose when the very concept of a corporation was still new. Most of the complaints that the public has leveled have had little effect on boards of directors' decisions. Occasionally, however the outcry is so great that the public compels a company's leadership to take action. This happened early in 2009 when American …

Saving Up For Bankruptcy, Ronald J. Mann, Katherine Porter

Faculty Scholarship

Bankruptcy is a numbers game. Policymaking, public perception, and the scholarly literature are captivated with the number of annual bankruptcy filings, which hit one million in 2008. The number of annual bankruptcy filings has become a barometer of economic health, reflecting an implicit assumption that bankruptcy is a useful proxy for financial distress.

But at the level of the individual family, the causative relation between financial distress and bankruptcy filings is unclear. On the one hand, only a fraction of those in serious financial distress will ever file for bankruptcy. For example, a study by Michelle White examined a group …

Insurance Perspectives On Federal Financial Regulatory Reform: Addressing Misunderstandings And Providing A View From A Different Paradigm, Jeffrey E. Thomas

Villanova Law Review (1956 - )

The article discusses the insurance regulation in the U.S. and its role in the financial crisis. It states that the collapse of American International Group (AIG) was not an insurance regulatory failure. It describes the scope and approach to state insurance regulation and the development and functioning of the National Association of Insurance Commissioners (NAIC). The role played by the courts in insurance regulation is also addressed.

"Cover My Pills": Contraceptive Equity And Religious Liberty In Catholic Charities V. Dinallo, Ayelet S. Lebovicz

Cardozo Journal of Equal Rights & Social Justice

The note  examines the tension between the New York Womens Health and Wellness Act's (WHWA) goal of promoting women's health through contraceptive access and its burden on the First Amendment rights of religious employers. It argues that while the WHWA advances significant public health interests, its contraceptive mandate imposes substantial burdens on religious freedom and free speech, necessitating strict scrutiny. The analysis critiques the New York Court of Appeals' decision for failing to fully consider the plaintiffs' hybrid-rights claims under Supreme Court precedent, highlighting the need for lawmakers to balance competing interests while adhering to constitutional protections.

Barriers To Financing: Is European Union Indirect Discrimination Law The Answer For Female Entrepreneurs?, Adam G. Panopoulos

Cardozo Journal of Equal Rights & Social Justice

The note explores whether European Union indirect discrimination law, particularly Directive 2004/113/EC, can address the barriers female entrepreneurs face in accessing financing. It examines the application of indirect discrimination principles to financial services, analyzing ECJ case law and advocating for the integration of gender mainstreaming to enhance gender equality in entrepreneurship.

Lawyers Keep Out: Why Attorneys Should Not Participate In Negotiating Critical Financial Numbers Reported By Public Company Clients, William O. Fisher

Law Faculty Publications

In response to the financial scandals at the turn of the century, Sarbanes-Oxley and related reforms radically changed the relationship between accountants and the companies they audit. As a result, auditors exert greater power in the negotiations with management that produce critical numbers in company financial statements. That power provides auditors with newfound ability to resist pressure to certify financial statements that are overly favorable to company stock prices. With the best of intentions, some now urge that company attorneys should expand their efforts to police clients’ financial statements. But the introduction of lawyers into the bargaining between management and …

Leverhulme Lecture: The Future Of Securitization, Steven L. Schwarcz

Faculty Scholarship

Lecture given November 11, 2010, the third of three delivered by Prof. Schwarcz as Leverhulme Visiting Professor of Law, Oxford University.

The securitization of subprime mortgage loans is widely viewed as a root cause of the financial crisis. This lecture balances the costs and benefits of securitization, focusing on what went wrong and on what needs to be fixed to curtail securitization’s abuses and make it viable again as an important financing tool. Finally, the lecture examines alternatives to securitization, focusing on covered bonds and comparing and contrasting covered bonds and securitization.

Penipuan Kad Kredit Dan Implikasi Terhadap Sistem Perundangan Dan Ekonomi Malaysia., Chandran Ramasamy

Student Works (2010-2019)

Fakta bahawa kemajuan teknologi memudahkan penjenayah untuk melakukan penipuan kad kredit ternyata benar. Sudah bertahun-tahun, jumlah penipuan kad kredit meningkat dengan kadar yang cepat. lni menyebabkan jatuhnya ekonomi sesebuah negara secara keseluruhan yang membawa persepsi negatif terhadap keseluruhan pentadbiran Jabatan Polis dan Agensi agensi perbankan. Tanpa mekanisme kawalan yang betul, kemunkinan agak sukar untuk melawan dan menangani masalah so~ial ini. Undangundang Negara yang berkaitan dengan penipuan kad kredit perlu dikaji sekali lagi dan penguatkuasaan undang-undang untuk pihak bank yang memberikan dan menawarkan kad kredit perlu diberi amaran tentang isu perlindungan data yang kian penting. Selain itu, dengan adanya Undang-Undang baru …

Bonding Bankers: Notes Toward A Governance Approach To Risk Regulation, Frederick Tung

Faculty Scholarship

Important regulatory failures have been identified in the wake of the recent financial crisis, and comprehensive regulatory reform has been much on the minds of policymakers. Reform proposals call for a number of significant changes to the scope and structure of financial regulation to address systemic risk. With banking regulation, however, the twin tools of capital requirements and external supervision seem to remain the dominant regulatory levers. In this short discussion, I introduce the contours of an important supplement to the existing approach, a governance approach that uses bank executives' compensation arrangements as a policy lever. I propose that bank …

A Short History Of Tontines, Kent Mckeever

Faculty Scholarship

A tontine is an investment scheme through which shareholders derive some form of profit or benefit while they are living, but the value of each share devolves to the other participants and not the shareholder's heirs on the death of each shareholder. The tontine is usually brought to an end through a dissolution and distribution of assets to the living shareholders when the number of shareholders reaches an agreed small number.

If people know about tontines at all, they tend to visualize the most extreme form – a joint investment whose heritable ownership ends up with the last living shareholder. …

Kajian Aplikasi Akad Mudarabah Di Pt. Asuransi Takaful Umum Jakarta, Indonesia., Marhadi .

Student Works (2010-2019)

This disertation discourses the contract of mudarabah and its application in the general takaful at PT. Asuransi Takaful Umum Jakarta,Indonesia. The study focuses on the application, profit calculation and some relevant issues in general takaful product. The takaful company itself in form of annual report and also from interviews with the respective officers. It was found from the study that Asuransi Takaful Umum has appliced the mud}a>rabah contract in accordance with the shariah requirement which is to uphold justice, ensure mutual benefits and to avoid riba>, gharar ,maysir and dishonesty.

Populist Retribution And International Competition In Financial Services Regulation, Adam C. Pritchard

Articles

The pattern of regulatory reform in financial services regulation follows a predictable pattern in democratic states. A hyperactive market generates a bubble, the bubble deflates, and much financial pain ensues for those individuals who bought at the top of the market. The financial mess brings the scrutiny of politicians, who vow "Never again!" A political battle ensues, with representatives of the financial services industry fighting a rearguard action to preserve its prerogatives amidst cries for the bankers' scalps. Regulations, carefully crafted to win the last war, are promulgated. Memories fade of the foolish enthusiasm that fed the last bubble. Slowly, …