Banking and Finance Law Commons^™

Developments In The Laws Affecting Electronic Payments And Financial Services, Sarah Jane Hughes, Stephen T. Middlebrook, Tom Kierner

Articles by Maurer Faculty

The past year proved to be a busy period for the regulation of electronic payments and financial services. In this year’s survey, we discuss rulemakings, enforcement actions, and other litigation that has significantly impacted the law governing payments and financial services. Part II addresses the ongoing fight between federal and state authorities over which should properly regulate Fin- Tech entities and describes some new steps the Office of the Comptroller of the Currency (“OCC”) has taken to assert its authority in this area. Part III details an enforcement action that California regulators took against a FinTech company they determined had …

Peeking Into The House Of Cards: Money Laundering, Luxury Real Estate, And The Necessity Of Data Verification For The Corporate Transparency Act’S Beneficial Ownership Registry, S. Alexandra Bieler

Fordham Journal of Corporate & Financial Law

It is estimated that $800 billion to $2 trillion are laundered globally every year, funding the schemes of bad actors and terrorists alike. These astronomical sums are moved around the world without detection; this is in large part due to the ease with which anonymous shell companies, typically limited liability companies (LLCs), can be created, particularly in the United States. America is one of the most egregious enablers of this practice because most states require little to no information about the person ultimately controlling the entity, known as the “beneficial owner.” Working through an LLC, bad actors often turn to …

Does Cryptocurrency Staking Fall Under Sec Jurisdiction?, Nicholas E. Gonzalez

Fordham Journal of Corporate & Financial Law

Bitcoin, the first blockchain and cryptocurrency (crypto), launched in 2009 when the Bitcoin network opened to the public. A blockchain is a digital ledger technology where transactions are aggregated and permanently recorded into blocks of information. Maintenance of a blockchain is typically conducted by decentralized managers who own and operate network computers (“Nodes”) and serve the functions normally handled by central intermediaries to validate and confirm transactions. All Nodes follow a blockchain protocol. In Bitcoin’s and most cryptos’ cases, this protocol is known as a Proof- of-Work protocol which requires a large amount of energy consumption. Consequently, Proof-of-Stake protocols (“PoS”) …

A Process For Politics, Anna Gelpern

Georgetown Law Faculty Publications and Other Works

I argue that consistent and public process observance has a distinctly valuable function in sovereign debt restructuring, with no precise equivalent in national insolvency regimes. National regimes reflect the distribution bargains of their enactment, presumptively legitimate and binding. Debtors and creditors allocate insolvency losses in their shadow, with liquidation as a backstop and politics just outside the frame. All else equal, the restructuring process has a harder job with sovereign debt. There is no liquidation backstop and no default distribution scenario. Each crisis resolution episode must allocate losses from scratch among the country’s citizens, foreign and domestic creditors, and other …

What Is The Law's Role In A Recession?, Gabriel Rauterberg, Joshua Younger

Faculty Scholarship

In March 2020, the world faced not only a public health emergency but also one of the most profound shocks to the global economy in the modern era — a shock deeper and broader than any other in eighty years. Never before had virtually all of the world’s economies suffered a contraction at the same time (Tooze, p. 5). Global output decreased by nearly 3.4% in 2020, the largest contraction since the Second World War. The United States saw the largest recorded demand shock in its history (-32.9%), and the unemployment rate peaked around 15% during 2020, higher than at …

Broken Infrastructure, Del C. Wright Jr.

Faculty Works

This article examines the cryptocurrency-related provisions of the Infrastructure Investment and Jobs Act of 2021, focusing on amendments to the Internal Revenue Code that expand tax reporting and surveillance obligations for digital assets. Specifically, it analyzes the new “Broker” and “Tax” provisions, which extend reporting requirements beyond traditional financial intermediaries to actors in the blockchain ecosystem who may lack access to the necessary data. The article situates these provisions within the broader regulatory and political context, tracing their roots to prior Treasury rulemaking efforts and exploring their intended role in closing the “tax gap.” It highlights the significant compliance challenges, …

The Wireless Investors Movement, Sergio Alberto Gramitto Ricci, Christina M. Sautter

Faculty Works

The inaugural guest academic article for the University of Chicago Business Law Review Blog discusses how Millennial and GenZ investors can set in motion a social movement with disruptive effects on the current corporate governance paradigm. It refers to Millennial and GenZ investors as “wireless investors” and their social movement as the “Wireless Investors Movement.” The Wireless Investors Movement, fueled by wireless investors’ vision of the world and technology savviness, will bring corporations to pursue social and environmental causes. This short contribution analyzes the characteristics of the Wireless Investors Movement and the effects it will have on corporate governance.

ปัญหาการตีความคำว่า “รายจ่ายซึ่งมิใช่รายจ่ายเพื่อหากำไรหรือเพื่อกิจการโดยเฉพาะ" ตามมาตรา 65 ตรี (13) ประมวลรัษฎากร, พัชราเพ็ญ ธรรมญาณรังสี

Chulalongkorn University Theses and Dissertations (Chula ETD)

เอกัตศึกษาฉบับนี้มุ่งศึกษาถึงปัญหาการตีความคำว่า “รายจ่ายซึ่งมิใช่รายจ่ายเพื่อหากำไรหรือเพื่อกิจการโดยเฉพาะ" ตามมาตรา 65 ตรี (13) แห่งประมวลรัษฎากรในปัจจุบัน ที่ยังคงขาดหลักเกณฑ์การตีความที่ชัดเจนและแน่นอน ทำให้ผู้บังคับใช้กฎหมายและผู้ปฏิบัติตามกฎหมายตีความมาตราดังกล่าวในความหมายที่แตกต่างกัน ผลที่ได้จากการศึกษาค้นคว้าคือ สาเหตุของปัญหาการตีความเกิดจากความซับซ้อนของโครงสร้างประมวลรัษฎากรในส่วนของการหักรายจ่าย ความไม่ชัดเจนของกฎหมาย รวมถึงการขาดเครื่องมือที่คุ้มครองสิทธิของผู้เสียภาษีที่มีประสิทธิภาพเพียงพอ โดยแม้ผู้บังคับใช้กฎหมายจะวางหลักเกณฑ์การตีความไว้ในข้อหารือกรมสรรพากรและคำพิพากษาศาลซึ่งสอดคล้องกับแนวคิดรายจ่ายทางภาษี แต่ข้อหารือดังกล่าวก็ไม่มีสถานะทางกฎหมายหรือผลผูกพันให้ฝ่ายใดต้องยึดถือปฏิบัติตาม ทำให้บางกรณีหลักเกณฑ์การตีความของฝ่ายจัดเก็บภาษีอากรเกิดความไม่แน่นอนในข้อเท็จจริงที่คล้ายคลึงกัน ทั้งยังเกิดความขัดแย้งในการตีความระหว่างหน่วยงานผู้บังคับใช้กฎหมาย 2 องค์กร สิ่งเหล่านี้จึงแสดงให้เห็นถึงปัญหาการตีความคำว่า “รายจ่ายซึ่งมิใช่รายจ่ายเพื่อหากำไรหรือเพื่อกิจการโดยเฉพาะ" อันเป็นปัญหาความไม่แน่นอนของกฎหมาย ซึ่งส่งกระทบต่อสิทธิขั้นพื้นฐานของผู้เสียภาษีในอันจะเพิ่มความเสี่ยงต่อการถูกประเมินภาษีย้อนหลัง เบี้ยปรับ และเงินเพิ่มดังนั้นผู้เขียนจึงได้ศึกษาโครงสร้างกฎหมาย หลักเกณฑ์และวิธีการปฏิบัติเบื้องต้นเกี่ยวกับการตีความคำว่า “รายจ่ายซึ่งมิใช่รายจ่ายเพื่อหากำไรหรือเพื่อกิจการโดยเฉพาะ" ของประเทศสหรัฐอเมริกา ประเทศสาธารณรัฐสิงคโปร์ และประเทศออสเตรเลีย เพื่อนำหลักการและแนวคิดในการลดปัญหาที่เกิดขึ้นจากการตีความและบังคับใช้กฎหมายของประเทศดังกล่าวมาเป็นแนวทางเบื้องต้นในการปรับใช้กับโครงสร้างระบบภาษีของประเทศไทยให้มีประสิทธิภาพมากยิ่งขึ้น

Learning To Manipulate A Financial Benchmark, Megan Shearer, Gabriel V. Rauterberg, Michael P. Wellman

Law & Economics Working Papers

Financial benchmarks estimate market values or reference rates used in a wide variety of contexts, but are often calculated from data generated by parties who have incentives to manipulate these benchmarks. Since the London Interbank Offered Rate (LIBOR) scandal in 2011, market participants, scholars, and regulators have scrutinized financial benchmarks and the ability of traders to manipulate them.

We study the impact on market welfare of manipulating transaction-based benchmarks in a simulated market environment. Our market consists of a single benchmark manipulator with external holdings dependent on the benchmark, and numerous background traders unaffected by the benchmark. We explore two …

Twenty Yards From The End Zone: Adr, And The Potential For Greater Levels Of Gender Equality In Professional Sports Employment, Elan Kirshenbaum

Cardozo Journal of Conflict Resolution

This Note will highlight the specific instances of gender-based employment discrimination in professional sports and then consider how alternative dispute resolution (“ADR”) provides the best avenue to address and correct these imbalances. In particular, this Note will analyze the benefits and drawbacks of ADR and litigation, while simultaneously applying this analysis to the discussion of the gender gap in professional sports employment. Part II will outline several examples of this discrimination, while also briefly detailing the general hiring and wage gaps that exist between men and women. In doing so, this section will examine the hiring practices of three of …

From Conflict To Co-Creation Three Powerful Stories Of Transformational Change, Payton Silket, Cheryl L. Epps

Cardozo Journal of Conflict Resolution

In our communities today, too often, the end goal of dialogue is to develop methods that allow people to coexist, but this is not enough. If left at that, our society will increasingly become more segmented and stratified, where groups of people are able to reside in the same vicinity but only interact when absolutely necessary or safe. This is no way to live, and, in fact, it is a recipe for polarization and the eventual death of dialogue.

Table Of Contents, Seattle University Law Review

Seattle University Law Review

Table of Contents

Rethinking Kirschner V. J.P. Morgan: How Securities And Banking Laws Should Apply To Syndicated Loans, Joel Crank

University of Colorado Law Review

No abstract provided.

Foreword: Arthur E. Wilmarth, Jr., A Scholar Of Uncommon Conviction, Integrity, And Boldness, Patricia A. Mccoy

University of Colorado Law Review

No abstract provided.

Block Rewards, Carried Interests, And Other Valuation Quandaries In Taxing Compensation, Henry M. Ordower

All Faculty Scholarship

In this article, Ordower contextualizes block rewards litigation with historical failures to tax compensation income paid in kind. Tax fairness principles demand current taxation of the noneconomically diluting block rewards’ market value.

Steering Loan Modifications Post-Pandemic, Pamela Foohey, Dalie Jimenez, Christopher K. Odinet

Scholarly Works

As part of federal and state relief programs created during the COVID-19 pandemic, many American households received pauses on their largest debts, particularly on mortgages and student loans. Others may have come to agreements with their lenders, likewise pausing or altering payment on other debts, such as auto loans and credit cards. This relief allowed households to allocate their savings and income to necessary expenses, like groceries, utilities, and medicine. But forbearance does not equal forgiveness. At the end of the various relief periods and moratoria, people will have to resume paying all their debts, the amounts of which may …

Credit Scoring Duality, Pamela Foohey, Sara Sternberg Greene

Scholarly Works

Credit scoring is central to people’s financial growth and prosperity or financial decline and stagnation. People with a good credit score and accompanying credit report can buy opportunities to advance economically. The benefits they reap from their attractiveness to lenders and employers helps feed their future success. In contrast, people with a fair or poor credit score become stuck in cycle of high interest rates and costly loan terms, large required down payments, and denied applications for rentals, cell phone plans, and employment. Employers, service providers, lenders, and alternative financial service providers have begun to use alternative credit scoring models, …

The Banker Removal Power, Da Lin, Lev Menand

Faculty Scholarship

The Federal Reserve (“the Fed”) can remove bankers from office if they violate the law, engage in unsafe or unsound practices, or breach their fiduciary duties. The Fed, however, has used this power so rarely that few even realize it exists. Although major U.S. banks have admitted to repeated and flagrant lawbreaking in recent years, the Fed has never removed a senior executive from one of these institutions.

This Article offers the first comprehensive account of the banker removal power. It makes four contributions. First, drawing on a range of primary sources, it recovers the power’s statutory foundations, showing that …

Restructuring Support Agreements: An Empirical Analysis, Anthony J. Casey, Frederick Tung, Katherine Waldock

Faculty Scholarship

Restructuring support agreements (RSAs), or contracts that commit bankruptcy parties to supporting a plan of reorganization that will conform to certain requirements, are now a common feature of Chapter 11. Parties utilize these agreements in nearly half of all large cases. While prior literature has debated the normative value of RSAs, we take an empirical approach to look at what provisions the parties include in these agreements and how those provisions have changed over time.

Our analysis looks at all RSAs associated with large bankruptcies through the end of 2020. We characterize the types of firms with RSAs, the parties …

The Orkney Slew And Central Bank Digital Currencies, Jeffery Y. Zhang, Gary B. Gordon

Articles

This Article on central bank digital currencies is motivated by a parable, The Orkney Slew, which is set in an archipelago. Based on the parable, we point out a significant economic market failure that exists in the cross-border payments realm. The analysis then focuses on real-world examples and the national security concerns, including for Anti-Money Laundering/Combatting the Financing of Terrorism (AML/CFT) and the continued efficacy of U.S. sanctions, associated with the rapidly evolving digital payments landscape.

Many central banks around the world are now cooperatively experimenting with cross-border interoperability of digital currencies. These efforts are driven by the idea of …