Banking and Finance Law Commons^™

Purpose-Driven Compliance, Veronica Root Martinez

Faculty Scholarship

Whether it is a small brokerage firm in Ann Arbor, Michigan, a private university in Cambridge, Massachusetts, or a multinational conglomerate head-quartered in New York City, organizations understand that they are required to fulfill a range of compliance obligations. Compliance programs today tend to have two important characteristics in common. First, the notion that perfect compliance is an impossible goal is a key component of the understandings and expectations of many firms’ compliance programs. Second, organizations have almost uniformly adopted compliance programs in areas where enforcement activity has been significant—like in the areas of antibribery and anticorruption, anti-money laundering, antitrust, …

Crypto Litigation And Market Efficiency, Robert E. Bishop, Bradford Levy, Frank Partnoy, Daniel Taylor, Andrew Yeh

Faculty Scholarship

This paper investigates, for the first time in the literature, the factors that should matter to courts in determining whether a crypto  market is “efficient,” meaning that prices are sufficiently responsive to information. Based on new empirical evidence and a series of event studies, we recommend a new judicial framework for assessing market  efficiency in crypto litigation.

Market efficiency tests based on event studies have played an important role in other areas of litigation, particularly securities litigation, where courts frequently rely on what have become known as the “Cammer factors.” Academics have not yet assessed the extent to which market …

Sustainability Assurance, Andrew F. Tuch, Luca Enriques, Alessandro Romano

Scholarship@WashULaw

A robust literature examines sustainability disclosures by public corporations, but legal scholarship has largely overlooked the role of third-party assurance—or verification—of such disclosures. This is a notable omission given the extensive literature on the auditing of financial statements, a related form of assurance.

This article responds by examining the role of assurance in sustainability reporting. In keeping with the theme of this symposium volume, it draws on US and EU law. Our discussion begins in Part I with sustainability disclosures, focusing on the requirements and practices of public companies. In Part II, we introduce sustainability assurance as well as assurance …

Systemy Ochrony Instytucjonalnej W Sektorze Bankowym – W Świetle Rozporządzenia Crr, Rozdziału 10a Prawa Bankowego Oraz Regulacji Banków Spółdzielczych, Marta Stepniewska

internetowy Kwartalnik Antymonopolowy i Regulacyjny (internet Quarterly on Antitrust and Regulation)

This article is devoted to a discussion of the Institutional Protection Scheme (IPS) model, in the context of both EU and national legislation. The following sections discuss the legal and economic aspects of IPS. The largest such system in Europe – the German savings bank system – is used as the main example in the paper, while the comparative analysis also covered models from Italy, Austria and Spain.

With regard to Polish law, analyzed in detail were self-help mechanisms in the sector of cooperative banks, in operation since 2015, which represent modern solutions for the protection of solvency and liquidity …

Zmiany W Przepisach Dyrektywy Mcd – Postulaty De Lege Ferenda W Zakresie Ochrony Konsumenta-Kredytobiorcy Hipotecznego, Piotr Gałązka, Weronika Tołściuk

internetowy Kwartalnik Antymonopolowy i Regulacyjny (internet Quarterly on Antitrust and Regulation)

The object of this article is to assess the functioning thus far of Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on consumer credit agreements relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010 (Mortgage Credit Directive, MCD) in the mortgage market in the European Union, in light of calls for consumer protection of mortgage credit services made by representatives of consumer organisations, lenders, supervisors of financial market institutions, and EU institutions. The Directive has generally led to an increase in the level of consumer protection acting …

Prawo Konsumenta Do Obniżki Całkowitego Kosztu Kredytu W Przypadku Wcześniejszej Spłaty Zobowiązania, Michał Maciaczyk

internetowy Kwartalnik Antymonopolowy i Regulacyjny (internet Quarterly on Antitrust and Regulation)

The subject of this study is an analysis of the right of a consumer to a reduction in the total cost of credit in the event of its early repayment, with a particular focus on Article 49 of the Consumer Credit Act and the CJEU judgment of 11 September 2019 (C-383/18). The article addresses controversies surrounding the recalculation of credit costs, the division of costs into those that are dependent and those independent of the duration of the agreement, and the issue of consumer protection in the context of Directive 2008/48/EC. The conclusions of the article support a pro-consumer interpretation …

Zasada Minimalizacji A Zakres Wymiany Danych Ubezpieczeniowych Klienta W Projekcie Rozporządzenia W Sprawie Ram Dostępu Do Danych Finansowych (Fida), Bartosz Bigaj

internetowy Kwartalnik Antymonopolowy i Regulacyjny (internet Quarterly on Antitrust and Regulation)

The purpose of the article is to critically assess the provisions on the scope of customer financial data exchange contained in the draft Financial Data Access Framework Regulation (FIDA) published by the EC on June 28, 2023, in the context of the principle of minimalism regulated by the GDPR Regulation. The author focuses on the potential benefits and risks of sharing customer information in the insurance market, including consumers in particular. The article provides a general analysis of the concepts of “open finance,” “open banking” and “open insurance,” as well as the principle of data minimalism from the RODO. Due …

Technological Disruption And Regulatory Response: The Case Of Decentralised Finance, Jakub Wisła, Jolanta Bartoszewska

Journal of Banking and Financial Economics

This article examines responses to the regulatory challenges posed by decentralised finance (DeFi), a fast-evolving domain of blockchain-based financial innovation. It investigates the factors shaping divergent regulatory strategies, with a focus on the European Union’s comprehensive cryptoasset framework and selected comparative insights. Adopting a qualitative legal methodology – combining doctrinal-functional analysis, multivocal literature review, and two case studies – the authors explore how regulatory responses are influenced by three key variables: legal tradition, the financial function performed by blockchain-based solutions, and the level of technological and institutional autonomy. The case studies – Bitcoin as a payment instrument and cryptoassets as …

Reading Between The Lines: The Influence Of Financial News On Investor Decision-Making, Kalia Noble

Honors College Theses

This thesis investigates how financial media narratives shape investor sentiment and short-term market behavior. Drawing on behavioral finance and narrative economics, it examines whether the framing and tone of market news correlate with intraday volatility in the S&P 500 and Dow Jones Industrial Average. By pairing quantitative price data with contemporaneous headlines from major outlets such as Bloomberg, Yahoo! Finance, and CNBC, the study shows that emotionally charged or speculative narratives are closely associated with sharp market swings, even when fundamentals remain unchanged. These findings highlight the influence of media framing on investor decision-making and underscore the importance of financial …

Greenhat’S Greenlight To The Cftc: The Case For A Jurisdictional Shift Of Financial Transmission Rights From The Federal Energy Regulatory Commission To The Commodity Futures Trading Commission, Timothy K. Shaw Ii

DePaul Business & Commercial Law Journal

Regional Transmission Organizations and Independent System Operators are a relatively new platform to buy and sell wholesale electricity and transmission service of that electricity. These groundbreaking organizations have been around since 1996 after the Federal Energy Regulatory Commission (“FERC”) issued Order 888. FERC regulates the physical electricity wholesale sale and transmission service market managed by a Regional Transmission Organization (“RTO”) or Independent System Operator (“ISO”),through its Federal Power Act mandate. Many RTOs and ISOs offer a product called a Financial Transmission Right (“FTR”). Traditionally, FTRs assist the holder by providing price certainty, or a hedge, in the capacity market. This …

Choosing The Best Entity For Investments Trading After Understanding The Tax Limitations And Restrictions, Ray A. Knight, Joseph Lakatos

DePaul Business & Commercial Law Journal

The trading of various securities is subject to market rules. However, when securities trading is completed within a business entity, the entity is subject to tax limitations and restrictions. The tax benefits cannot be the dominant purpose for the entity structure; economic substance including profit motive and business purpose for each transaction must be able to be shown.

The trading of investment securities must be housed in the right entity to gain the best economic results as well as to minimize the tax burden. The entity selection process must first consider the characteristics and nature of the securities (e.g., currencies, …

Volume 23 - Front Matter

DePaul Business & Commercial Law Journal

No abstract provided.

Book Review - Beyond Banks: Technology, Regulation And The Future Of Money, Dan Awrey, (Princeton And Oxford: Princeton University Press, 2024), 292 + Viii Pp., $48 Cad, Benjamin Geva

Articles & Book Chapters

No abstract provided.

Can The New Literature About Debt Make A Real Difference In The Real World?, Norman I. Silber

Brooklyn Journal of Corporate, Financial & Commercial Law

Thank you for inviting me to participate in this symposium organized around a group of new books about “Debt in the Real World.” My discussion in Part I considers from a historical perspective the place these books occupy as part of a long tradition of consumer reform which has combined popular literature with scholarship to promote change. Part II then explores themes common to this new wave. Part III closes by arguing that as in earlier periods the new wave can make headway notwithstanding attacks on governmental interventions; that there may be space in our political geography for some of …

Presumption Of Creditworthiness, Nakita Q. Cuttino

Michigan Law Review

Creditworthiness, or the likelihood that one will repay one’s debts, is typically signaled through a three-digit number known as a credit score. Yet, over thirty-two million adult-aged consumers lack adequate consumer credit reports and therefore do not have a traditional credit score. As a result of being unscored, these consumers are generally presumed uncreditworthy and foreclosed from mainstream credit markets. Unscored consumers are often relegated to extractive, fringe credit markets that neither require nor build credit scores. More insidiously, however, a growing number of non-credit contexts, including rental housing, utility services, and employment markets, look to creditworthiness to determine eligibility …

Emergency Lending By The Federal Reserve, Kathryn Judge, Richard Clarida

Faculty Scholarship

The Federal Reserve established an array of innovative emergency lending facilities during the Great Financial Crisis and expanded the scope of its emergency lending yet further in response to the Covid-19 pandemic. This Article provides a retrospective of how the Federal Reserve used its emergency lending authority across these two episodes, identifying patterns and revealing some differences. It sheds light on the conditions that enabled the Federal Reserve to establish the facilities that it did, including the roles played by Congress and Treasury in providing the equity funding that made certain facilities possible. It shows how in each episode, the …

Welcome To The Bflr’S 7th Annual Fintech Issue, Nydia Remolina Leon, Alessio Azzuri, Virginia Torrie, Francisco Jose Ciancerta

Research Collection Yong Pung How School Of Law

This issue of the Banking and Finance Law Review is published at a moment of profound transformation in the FinTech regulatory landscape. Around the world, legislators, regulators, financial institutions, and scholars face the complex task of fostering technological innovation while addressing concerns over consumer and investor protection, data privacy and cybersecurity, market integrity, the prevention of financial crime, and overall stability of the financial system. At the same time, geopolitics is increasingly influencing the direction of FinTech policy and regulation, as states leverage financial infrastructure not only to modernize domestic markets but also to assert strategic influence globally. This convergence …

Limits Of Contingent Convertible Bonds: Evidence From The Credit Suisse Collapse, Albert H. Choi, Jacob Gerszten, Jeffery Y. Zhang

Law & Economics Working Papers

In the aftermath of the Global Financial Crisis, regulators encouraged banks to issue contingent convertible bonds ("CoCos") to improve the issuing bank's stability. Banks around the world have issued more than $1 trillion worth of CoCos to date. Yet it is unclear whether CoCos have achieved their intended goal of improving stability. Leveraging the unexpected banking panic in March 2023, we show that issuing banks fared worse-as measured by abnormal equity returns and probabilities of default. We also examine market dynamics after 2023 and find that the largest banks have continued to issue CoCos with similar contractual terms, though issuer …

Face Card Declined: The Deepfake Threat To Biometric Security In Financial Systems, Hazel Fernandez

Washington and Lee Law Review Online

Once limited to entertainment and disinformation, deepfakes are now extending into the financial sector, where voice and facial impersonations exploit biometric authentication systems to facilitate fraudulent transactions. This evolution exposes gaps in existing legal and regulatory frameworks, raising critical questions about consumer protection and institutional safeguards. This Note argues for a reconceptualization of deepfake harms as both a privacy and a financial security issue. It examines the illusion of consent generated by synthetic impersonation and insufficient statutory protections. The analysis examines the patchwork of federal, state, and international laws governing data privacy and artificial media, highlighting the gaps that allow …

Torts And Pesticide Drift: Amending Right-To-Farm Acts In The Wake Of Widespread Dicamba Drift By Nicholas Brown** And Matt Roessing*

Journal of Legal Studies in Business

When crops die in a field prior to harvest, a farmer loses a portion of his salary for that year. When the cause of the crop loss is natural, farmers can usually seek compensation through crop insurance and government commodity support programs. When the crops were lost as a result of pesticide drift, these forms of compensation are not usually available to farmers.1 In order to make up for their losses, farmers can seek damages through judicial redress. For many decades, various state and federal laws have combined to complicate and at times prevent farmers adversely affected by pesticide drift …