Banking and Finance Law Commons^™

Post-Crisis Financialization Through Product Innovation: Assessing Complexity, Growth & Design In Exchange Traded Funds, Ryan Clements

Duke Law SJD Dissertations

This dissertation examines emerging risks and regulatory concerns in exchange traded funds (ETFs). It makes four core arguments through four published or accepted (and forthcoming) law review articles, alongside two published blog posts, all of which were written and previously submitted to the SJD Committee during the author’s dissertation research period. These articles are organized herein as dissertation chapters together with a contextual introduction and a summary conclusion which frames the dissertation within the scholarly literature on economic “financialization,” and emerging challenges associated with the growth of large interconnected asset managers.

The four core arguments in this dissertation are as …

Disabling Fascism: A Struggle For The Last Laugh In Trump’S America, Madeleine M. Plasencia

Articles

Six years before the start of the Second World War and seven months after Hitler’s appointment as Chancellor of Germany, the German government instituted the “Law for the Prevention of Progeny with Hereditary Diseases.” The moral depravity that started as a sterilization program targeting “useless eaters” and lives “unworthy of life” degenerated into a “euthanasia” program that murdered at least 250,000 people with mental and physical dis/abilities as an “open secret” until 1941, when the Bishop of Munster, Clemens August Count von Galen, delivered a sermon protesting the killing of “unproductive people.”2 Although the Trump Administration has not yet driven …

The Regulation Of Cryptocurrencies: Between A Currency And A Financial Product, Hadar Y. Jabotinsky Dr.

Fordham Intellectual Property, Media and Entertainment Law Journal

Cryptocurrencies are electronically generated and stored currencies by which users can trade either real or virtual objects with one another. As these digital assets gain popularity, the issue of how to regulate them becomes more pressing. Cryptocurrencies are attractive due in part to their decentralized, peer-to-peer structure. This makes them an alternative to national currencies which are controlled by central banks. Given that these cryptocurrencies are already replacing some of the “regular” national currencies and financial products, the question then arises—should they be regulated? And if so, how? This paper draws the legal distinction between cryptocurrencies which are in fact …

Table Of Contents, Seattle University Law Review

Seattle University Law Review

Table of Contents

Banking The Unbanked Innovators, Xuan-Thao Nguyen

Articles

Innovators are necessary for the engine of economic growth. Why do banks still find innovators, from startups to high growth companies, unattractive as potential customers for banking and lending products? Banks typically make business loans to established companies with positive cash flow and physical assets. Banks are eager to make loans in real estate transactions. Throughout modern time, banks persistently avoid banking innovators. Nationwide, only five outlier banks are defying conventional banking practices, and the leader among them is Silicon Valley Bank. Against all the odds, Silicon Valley Bank began as a local, community bank for innovators in 1982, and …

Lending Innovations, Xuan-Thao Nguyen

Articles

This article is the first to identify the disruption in tech lending by outlier commercial banks and to theorize the ways in which IP Venture Banking is fueling innovation both nationwide and globally. This disruptive model is a new beginning for both banks and startups on the path of borrowing and lending for innovation.

Part I identifies the four outlier banks-from among the six thousand total banks-that dare to venture into the innovation-intensive sectors for lending purposes and dominate the business model of lending for innovation. Based on extensive efforts to extract data from bank lending activities, Part I reveals …

The New Mechanisms Of Market Inefficiency, Kathryn Judge

Faculty Scholarship

Mechanisms of market inefficiency are some of the most important and least understood institutions in financial markets today. A growing body of empirical work reveals a strong and persistent demand for “safe assets,” financial instruments that are sufficiently low risk and opaque that holders readily accept them at face value. The production of such assets, and the willingness of holders to treat them as information insensitive, depends on the existence of mechanisms that promote faith in the value of the underlying assets while simultaneously discouraging information production specific to the value of those assets. Such mechanisms include private arrangements, like …

Revising Boilerplate: A Comparison Of Private And Public Company Transactions, Stephen J. Choi, Robert E. Scott, G. Mitu Gulati

Faculty Scholarship

The textbook model of commercial contracts between sophisticated parties holds that terms are proposed, negotiated and ultimately priced by the parties. Parties reach agreement on contract provisions that best suit their transaction with the goal of maximizing the joint surplus from the contract. The reality, of course, is that the majority of the provisions in contemporary commercial contracts are boilerplate terms derived from prior transactions and even the most sophisticated contracting parties pay little attention to these standard terms, focusing instead on the price of the transaction. With standard-form or boilerplate contracts, this dynamic of replicating by rote the terms …

A Better Financing System? The Death And Possible Rebirth Of The Presidential Nomination Public Financing Program, Richard Briffault

Faculty Scholarship

In the spring of 1974, the 31-year-old junior Senator from Delaware, Joseph R. Biden, Jr., published a law review article in which he decried the traditional system of privately financed election campaigns. Private financing, Senator Biden contended, “affords certain wealthy individuals or special interest groups the potential for exerting a disproportionate influence over both the electoral mechanism and the policy-making processes of the government.” Moreover, Biden urged, private funding poses an obstacle to the candidacies of “individuals of moderate means” and so was at odds with the “concept of American democracy [that] presumes that all citizens, regardless of access to …

Why Financial Regulation Keeps Falling Short, Dan Awrey, Kathryn Judge

Faculty Scholarship

This article argues that there is a fundamental mismatch between the nature of finance and current approaches to financial regulation. Today’s financial system is a dynamic and complex ecosystem. For these and other reasons, policy makers and market actors regularly have only a fraction of the information that may be pertinent to decisions they are making. The processes governing financial regulation, however, implicitly assume a high degree of knowability, stability, and predictability. Through two case studies and other examples, this article examines how this mismatch undermines financial stability and other policy aims. This examination further reveals that the procedural rules …

How To Help Small Businesses Survive Covid-19, Todd Baker, Kathryn Judge

Faculty Scholarship

Small businesses are among the hardest hit by the COVID-19 crisis. Many are shuttered, and far more face cash flow constraints, raising questions about just how many will survive this recession. The government has responded with a critical forgivable loan program, but for many of these businesses, this program alone will not provide the cash they need to retain workers, pay rent, and help their business come back to life when Americans are no longer sheltering in place. This essay calls on regulators to find new and creative ways to work with existing intermediaries, including banks and online lenders, who …

The Covid-19 Pandemic And Business Law: A Series Of Posts From The Oxford Business Law Blog, Gert-Jan Boon, Markus K. Brunnermeier, Horst Eidenmueller, Luca Enriques, Aurelio Gurrea-Martínez, Kathryn Judge, Jean-Pierre Landau, Marco Pagano, Ricardo Reis, Kristin Van Zwieten

Faculty Scholarship

The COVID-19 Pandemic is the biggest challenge for the world since World War Two, warned UN Secretary General, António Guterres, on 1 April 2020. Millions of lives may be lost. The threat to our livelihoods is extreme as well. Job losses worldwide may exceed 25 million.

Legal systems are under extreme stress too. Contracts are disrupted, judicial services suspended, and insolvency procedures tested. Quarantine regulations threaten constitutional liberties. However, laws can also be a powerful tool to contain the effects of the pandemic on our lives and reduce its economic fallout. To achieve this goal, rules designed for normal times …

Long-Term Bias, Eric L. Talley, Michal Barzuza

Faculty Scholarship

An emerging consensus in certain legal, business, and scholarly communities maintains that corporate managers are pressured unduly into chasing short-term gains at the expense of superior long-term prospects. The forces inducing managerial myopia are easy to spot, typically embodied by activist hedge funds and Wall Street gadflies with outsized appetites for next quarter’s earnings. Warnings about the dangers of “short termism” have become so well established, in fact, that they are now driving changes to mainstream practice, as courts, regulators and practitioners fashion legal and transactional constraints designed to insulate firms and managers from the influence of investor short-termism. This …

Building A Law-And-Political-Economy Framework: Beyond The Twentieth-Century Synthesis, Jedediah S. Purdy, David Singh Grewal, Amy Kapczynski, K. Sabeel Rahman

Faculty Scholarship

We live in a time of interrelated crises. Economic inequality and precarity, and crises of democracy, climate change, and more raise significant challenges for legal scholarship and thought. “Neoliberal” premises undergird many fields of law and have helped authorize policies and practices that reaffirm the inequities of the current era. In particular, market efficiency, neutrality, and formal equality have rendered key kinds of power invisible, and generated a skepticism of democratic politics. The result of these presumptions is what we call the “Twentieth-Century Synthesis”: a pervasive view of law that encases “the market” from claims of justice and conceals it …

Innovation Versus Encrustation: Agency Costs In Contract Reproduction, Stephen J. Choi, Mitu Gulati, Robert E. Scott

Faculty Scholarship

This article studies the impact of exogenous legal change on whether and how lawyers across four different deal types revise their contracts’ governing law clauses in order to solve the problem that the legal change created. The governing law clause is present in practically every contract across a wide range of industries and, in particular, it appears in deals as disparate as private equity M&A transactions and sovereign bond issuances. Properly drafted, the clause increases the ex ante economic value of the contract to both parties by reducing uncertainty and litigation risk. We posit that different levels of agency costs …

Driver For Contactless Payments, Ronald J. Mann

Faculty Scholarship

As a consumer, my primary experience with cash before the virus was standing in checkout lines observing the sluggish pace of cash transactions in front of me. Like so many things in our lives, the advent of the virus has changed the situation markedly. From the earliest days of infection, it has been far more unsettling to observe cash transactions knowing that the virus persists on paper and metal surfaces for days.

The dynamic that has driven the choices merchants offer in face-to-face retail transactions will change as well. Driven by the private exigencies of the retail environment, the last …

Why The Fed Should Issue A Policy Framework For Credit Policy, Kathryn Judge

Faculty Scholarship

The Federal Reserve has long used policy frameworks to both explain and inform its policymaking. These policy frameworks typically explain what the Fed is seeking to achieve in a given domain and how it plans to achieve its desired aims. Two prominent examples are the Fed’s use of Bagehot’s dictum when acting as a lender of last resort and its monetary policy framework issued in 2012 and revised in 2020. In both instances, the framework provides a foundation for informed debate among Fed policymakers, Congress, and the public, enhancing both efficacy and accountability. Since the onset of the Covid crisis, …

Executive Underreach, In Pandemics And Otherwise, David E. Pozen, Kim Lane Scheppele

Faculty Scholarship

Legal scholars are familiar with the problem of executive overreach, especially in emergencies. But sometimes, instead of being too audacious or extreme, a national executive's attempts to address a true threat prove far too limited and insubstantial. In this Essay, we seek to define and clarify the phenomenon of executive underreach, with special reference to the COVID-19 crisis; to outline ways in which such underreach may compromise constitutional governance and the international legal order; and to suggest a partial remedy.

Arbitrating With The Mafia: Why Civil Rico Statutes Are Improperly Used And How Class Action Arbitration May Provide Just Compensation For Forgotten Victims, Max Steinberg

Cardozo Journal of Conflict Resolution

From the nineteenth century onward, the United States has been overwhelmed by the rise of organized crime. For generations, criminal organizations have "infiltrated the social and economic fabric" of society and committed heinous crimes in almost every way imaginable. For decades, pop culture and Hollywood have been infatuated with criminal organizations. Movies, television shows, books, and podcasts have portrayed these organizations as interesting and complex entities. In most cinematic programs, the leaders of these mob organizations are the protagonists. Hollywood may portray fictional mob bosses as such, but in reality, their organizations often contain ruthless murderers. What seems to get …

ปัญหาการเสนอคดีต่อศาลภาษีอากร ในกรณีเจ้าพนักงานหรือคณะกรรมการ ตามกฎหมายภาษีอากรยังไม่มีคำวินิจฉัยอุทธรณ์ภายในระยะเวลาที่กฎหมายกำหนด, ชุติณัชชา อินทรานุกูล

Chulalongkorn University Theses and Dissertations (Chula ETD)

รายงานเอกัตศึกษาเล่นนี้ มีวัตถุประสงค์ เพื่อศึกษาหาแนวทางในแก้ปัญหาความขัดหรือแย้งของพระราชบัญญัติจัดตั้งศาลภาษีอากรและวิธีพิจารณาคดีภาษีอากร พ.ศ.2528 มาตรา 7(1) ประกอบมาตรา 8 กับพระราชบัญญัติภาษีที่ดินและสิ่งปลูกสร้าง พ.ศ. 2562, พระราชบัญญัติภาษีสรรพสามิตพ.ศ. 2560, พระราชบัญญัติกรมศุลกากร พ.ศ.2560 และพระราชบัญญัติภาษีการรับมรดก พ.ศ.2558 ในคดีอุทธรณ์คำวินิจฉัยของเจ้าพนักงานหรือคณะกรรมการตามกฎหมายเกี่ยวกับภาษีอากรโดยเทียบเคียงกับพระราชบัญญัติจัดตั้งศาลปกครองและวิธีพิจารณาคดีปกครอง พ.ศ. 2542 และพระราชบัญญัติวิธีปฏิบัติราชการทางปกครอง พ.ศ. 2539 โดยวิธีการศึกษาวิจัยทางเอกสารในการค้นคว้าและรวบรวมข้อมูลวิเคราะห์จากบทบัญญัติตามพระราชบัญญัติ คำพิพากษาของศาลหนังสือกฎหมาย ตลอดจนเอกสารอื่นๆ ที่เกี่ยวข้องในเรื่องดังกล่าว จากการศึกษาพบว่า ขั้นตอนในการดำเนินการต่างๆ เกี่ยวกับประเมินภาษีอากรและการคัดค้านหรืออุทธรณ์การประเมินภาษีอากร เป็นกระบวนการพิจารณาทางปกครองทั้งสิ้น และกฎหมายภาษีอากรที่ได้มีการปรับปรุง แก้ไขฉบับใหม่มีการให้สิทธิผู้อุทธรณ์สามารถฟ้องคดีต่อศาลภาษีอากรได้ ถึงแม้ว่าคณะกรรมการพิจารณาอุทธรณ์ยังไม่มีคำวินิจฉัยก็ตาม ซึ่งคล้ายคลึงกับเงื่อนไขในการฟ้องคดีทางปกครอง แต่ในปัจจุบันสิทธิตามกฎหมายภาษีอากรดังกล่าวยังไม่สามารถกระทำได้อย่างเต็มที่เนื่องจากเงื่อนขในการฟ้องคดีต่อศาลภาษีอากรต้องมีคำวินิจฉัยของคณะกรรมการพิจารณาอุทธรณ์ก่อน ด้วยเหตุนี้ จึงควรปรับปรุง แก้ไข เงื่อนไขในการฟ้องคดีตามมาตรา 7(1) ประกอบมาตรา 8 แห่งพระราชบัญญัติจัดตั้งศาลภาษีอากรและวิธีพิจารณาคดีภาษีอากร พ.ศ.2528 ให้คล้ายคลึงกับหลักเกณฑ์ของกฎหมายปกครอง เพื่อทำให้สิทธิในการฟ้องคดีต่อศาลภาษีอากรสามารถกระทำได้ตามอย่างถูกต้อง และยังเป็นการทำให้การฟ้องคดีมีมาตรฐานในรูปแบบเดียวกัน อันเป็นการประกันมาตรฐานวิธีการดำเนินงานของเจ้าหน้าที่ของรัฐให้กับประชาชนอีกทางหนึ่งด้วย