Banking and Finance Law Commons^™

The Federal Reserve And The 2020 Economic And Financial Crisis, Lev Menand

Faculty Scholarship

This Article provides a comprehensive legal analysis of the Federal Reserve's response to the 2020 economic and financial crisis. First, it examines the sixteen ad hoc lending facilities that the Fed established to fight the crisis and sorts them into two categories. Six advance the Fed's monetary mission and were designed to halt a run on financial institutions. Ten go beyond the Fed's traditional role and are designed to directly support financial markets and the real economy. Second, it maps these programs onto the statutory framework for money and banking. It shows that Congress's signature crisis legislation, the CARES Act, …

The Healthcare System And Pandemics: Where Is The Market Failure?, Sophia S. Helland, Edward R. Morrison

Faculty Scholarship

Barak D. Richman and Steven L. Schwarcz argue that healthcare providers played a central – and failing – role in stemming the fallout from the COVID-19 pandemic. Analogizing to the financial crisis of 2008, they view our healthcare system as a collection of providers, each maximizing returns to its own stakeholders in a laissez-faire regulatory environment that ignored the essential interconnectedness of providers. Because neither hospitals nor regulators were attuned to this interconnectedness, our healthcare system was unprepared for the pandemic, resulting in a reduced standard of care. Just as Dodd-Frank and related legislation view financial institutions as part of …

Cleaning Corporate Governance, Jens Frankenreiter, Cathy Hwang, Yaron Nili, Eric L. Talley

Faculty Scholarship

Although empirical scholarship dominates the field of law and finance, much of it shares a common vulnerability: an abiding faith in the accuracy and integrity of a small, specialized collection of corporate governance data. In this paper, we unveil a novel collection of three decades’ worth of corporate charters for thousands of public companies, which shows that this faith is misplaced.

We make three principal contributions to the literature. First, we label our corpus for a variety of firm- and state-level governance features. Doing so reveals significant infirmities within the most well-known corporate governance datasets, including an error rate exceeding …

An Efficiency Analysis Of Defensive Tactics, Ronald J. Gilson, Alan Schwartz

Faculty Scholarship

For thirty five years, courts and scholars have divided over the effects of defensive tactics in the market for corporate control. Strong defensive tactics locate authority to accept a hostile bid in the target’s board. The board can bargain for a higher takeover price than uncoordinated shareholders could realize but high takeover prices may reduce shareholder returns by reducing the likelihood of receiving a bid. The Delaware Courts themselves disagree. The Delaware Chancery Court would locate ultimate decision authority in the target’s shareholders, while the Supreme Court, by permitting strong defensive tactics, allocates extensive power to the target’s board. Though …

Rethinking "Political" Considerations In Investment, David H. Webber

Faculty Scholarship

Five years ago, Professor David H. Webber was invited to deliver an address both to our Delaware Law School community and to the Delaware Bench and Bar as Visiting Scholar in Residence of Corporate and Business Law. Webber's Speech, "Rethinking 'Political' Considerations in Investment," made several predictions about the rise of politicized investment which were quite prescient. As relevant today as when it was delivered, this piece explores the consideration of investment factors outside the traditional realm of shareholder profit maximization, both in its current state and in the future. Webber's analysis of how investors balance the role of capital …

Third Party Funding Of Investment Arbitration, Maya Steinitz

Faculty Scholarship

This Essay discusses Third-Party Funding in Investment Arbitration. It describes the rise of third-party funding of investment arbitration; the debate over the definition of litigation/arbitration finance; the forms arbitration finance takes; the normative debate in favor and against third-party funding of investment arbitration; the effects of arbitration funding on the arbitral process; developments in national, international, and soft law governing investment arbitration funding; and the likely effects of third-party funding on the international bar.

How Supreme Court Precedent Sheds Light On Corporate Bill Of Attainder Claims, Alina Veneziano

Seattle Journal for Social Justice

No abstract provided.

Lending Innovations, Xuan-Thao Nguyen

Brooklyn Law Review

This article is about innovations. Startups and their founders in the innovation intensive sectors cannot reach their dreams without financing. They cannot turn to banks for loans. Banks, from community to commercial banks, shun startups due to antiquated banking law, business model and high risks associated with tech lending. But there are outlier banks who disrupt the banking business model with lending innovation, fueling startups with loans that allow tech innovations to occur from Silicon Valley to Route 128 of the northeast corridor, and from Shanghai, China to Herzliya, Israel. With qualitative and quantitative patent data, this article demonstrates how …

Two Decades Of Laws And Practice Around Screen Scraping In The Common Law World And Its Open Banking Watershed Moment, Han-Wei Liu

Washington International Law Journal

Screen scraping—a technique using an agent to collect, parse, and organize data from the web in an automated manner—has found countless applications over the past two decades. It is now employed everywhere, from targeted advertising, price aggregation, budgeting apps, website preservation, academic research, and journalism, to name a few. However, this tool has raised enormous controversy in the age of big data. This article takes a comparative law approach to explore two sets of analytical issues in three common law jurisdictions, the United States, the United Kingdom, and Australia. As the first step, this article maps out the trajectory of …

Securing Crypto: Exempting Certain Cryptoassets From The Arkansas Securities Act, Jesse Kloss

Arkansas Law Review

Out of fifty states in 2019, Arkansas was ranked forty-fourth for technology and innovation with a grade of “F,” thirty-sixth for economy with a grade of “D+,” and thirty-seventh for business friendliness with a grade of “D+.” It is time to make Arkansas an innovation and business friendly state. Exempting certain fully functional cryptoassets, those that have some purpose other than a speculative or investment purpose, from the Arkansas Securities Act is one step towards doing so.

The Singapore Global Restructuring Initiative, Aurelio Gurrea-Martinez, Smu Office Of Research

Research@SMU Infographics

The SMU School of Law has recently launched the Singapore Global Restructuring Initiative (SGRI) with the support of Ministry of Law. Led by Assistant Professor Aurelio Gurrea-Martinez, the SGRI is working on a variety of projects that seek to promote a better understanding of corporate insolvency laws.

The Future Of Reorganization Procedures In The Era Of Pre-Insolvency Law, Aurelio Gurrea-Martinez

Research Collection Yong Pung How School Of Law

Several countries and regions around the world, including Singapore, the United Kingdom, and the European Union, are amending their restructuring framework to implement a pre-insolvency mechanism that includes most of the features that exist in the US Chapter 11 reorganization procedure. However, unlike what happens in the United States, where unsuccessful reorganizations lead to Chapter 7 liquidations, companies using this ‘de facto Chapter 11’ (DFCH11) are still allowed to use formal reorganization procedures. This article argues that, while the rise of the DFCH11 is not necessarily undesirable provided that various protections are put in place, jurisdictions implementing this restructuring tool …

Got Bounded Rationality And Political Gridlock? There's A Loan Disclosure Hack For That, Debra Pogrund Stark, Jessica M. Choplin, Andrew Pizor

Cleveland State Law Review

For decades, Congress has primarily relied upon the use of mandatory disclosure forms to protect consumers from entering into ill-advised loans by disclosing the terms of an offered loan before the borrower enters into it. This policy is not likely to change any time soon due to congressional gridlock. Frustratingly, despite improvements, consumers still have difficulties using these forms to obtain the key information and data they need to make wise decisions. These disclosures contain a great deal of information, and assume that consumers are capable of reading, understanding, and using all of it. Contrary to this assumption, research on …

The Progressive Turn: Politics And Policy In The Movement, Zephyr Teachout, Heather Gautney, Todd Melnick

Posters

Maloney Library lecture series, Behind the Book

Too Many To Fail: Against Community Bank Deregulation, Jeremy C. Kress, Matthew C. Turk

Northwestern University Law Review

Since the 2008 financial crisis, policymakers and scholars have fixated on the problem of “too-big-to-fail” banks. This fixation, however, overlooks the historically dominant pattern in banking crises: the contemporaneous failure of many small institutions. We call this blind spot the “too-many-to-fail” problem and document how its neglect has skewed the past decade of financial regulation. In particular, we argue that, for so- called community banks, there has been a pronounced and unjustifiable shift toward deregulation, culminating in sweeping regulatory rollbacks in the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018.

As this Article demonstrates, this deregulatory trend rests …

Is The Federal Reserve Constitutional? An Originalist Argument For Independent Agencies, Christine Kexel Chabot

Notre Dame Law Review

Originalists have written off the Federal Reserve’s independent monetary policy decisions as an unconstitutional novelty. This Article demonstrates that the independent structure of the Federal Reserve dates back to a Founding-era agency known as the Sinking Fund Commission. Like the Federal Reserve, the Commission conducted open market purchases of U.S. securities with substantial independence from the President. The Commission’s independent structure was proposed by Alexander Hamilton, passed by the First Congress, and signed into law by President George Washington. Their decisions to create an independent Commission with multiple members to check the President and one another—and to include the Vice …

Reimagining State Banking Regulators: How The Principles Underlying The Consumer Financial Protection Bureau Can Serve As A Blueprint For A New Regulatory Federalism, Seth Frotman

Maine Law Review

With hundreds of millions of Americans owing more than $14 trillion in combined household debt, a robust consumer financial protection framework is necessary to protect consumers when accessing critical credit markets. America relies on a complimentary system of regulatory federalism to uphold these protections, premised on robust state oversight and enforcement. However, the current implementation of this system is failing to meet the needs of this moment. Since the Great Recession, federal policymakers and regulators have devoted significant energy and resources to strengthen the oversight and accountability mechanisms of the consumer finance market—but these efforts have largely overlooked the need …

Foreword: Consumer Financial Protection Budget Proposal In California, Richard Cordray

Maine Law Review

No abstract provided.

Perceived Benefits And Barriers To Participation In Exercise Among Jordanian University Students, Khaldoun Hamdan

Al-Balqa Journal for Research and Studies البلقاء للبحوث والدراسات

Insufficient physical activity is a risk factor for many non-communicable diseases, therefore; the purpose of this study is to examine university students’ perceived exercise benefits and barriers. This cross-sectional descriptive study used Exercise Benefits/Barriers Scale to examine perceived benefits and barriers to exercise among a convenience sample of 517 university students in Jordan. Participants reported significantly higher perceived barriers to exercise than perceived benefits from exercise. The most important perceived barrier to exercise was “I am too embarrassed to exercise”. Moreover, “I will live longer if I exercise” and “exercising increases being accepted by others” were the most important perceived …

Project Management: A Help Or Hindrance A Collaborative Research, Ayman Abu-Rumman

Al-Balqa Journal for Research and Studies البلقاء للبحوث والدراسات

This small-scale mixed method study explored perceptions of how different project management approaches and tools are used by those working in industry and within academia, and how this may impact on collaborative research projects given their distinct and unique nature. The study also aimed to generate suggestions for how collaboration between industry and academia could be strengthened in the future. Underpinned by a phenomenological perspective, a survey and interviews were conducted with a sample of Jordanian professionals from different industry and academic organisations who had previous experience of working on collaborative research projects. The study identified, consistent with other studies, …