Author Archives: Guest Blogger

Restructuring the Personal-Public Gain Relationship: A Solution to the Battle Between Personal and Societal Interests

By | January 17, 2020

Courtesy of Kanksha Mahadevia Ghimire The United Nations Environment Programme issued a bulletin in 2013 highlighting the prevalent existence of corruption (fraud, bribery, abuses of power, etc.) in emissions trading, specifically the European Union’s Emissions Trading Scheme (EU ETS). Corruption undermines the emissions trading mechanism and weakens its chances to act as an effective incentive… Read More »

Summarization in Financial Disclosures: Determinants and Effects of Prospectus Summaries

By | January 14, 2020

Courtesy of Daniel Blaseg and Christina Bannier Issuers of financial securities must disclose vast amounts of information to capital markets. The increasing length and complexity of security prospectuses is an unambiguous sign of this development. To raise the comprehensibility of these documents, financial regulators around the world have started to require that issuers release an… Read More »

A Tale of Two Agencies: The Travails of the CFPB and FHFA

By | January 9, 2020

Courtesy of Joseph A. Smith, Jr. The Federal Housing Finance Agency (FHFA) and Consumer Financial Protection Bureau (CFPB) were established to address distinct aspects of the Global Financial Crisis. The Home Ownership and Economic Recovery Act of 2008 (HERA)[1] created the FHFA to provide for enhanced and rigorous supervision of Fannie Mae and Freddie Mac.… Read More »

The Unintended Consequences of Deregulation: Equity Markets under the JOBS Act

By | January 2, 2020

Courtesy of Anantha Divakaruni and Howard Jones Eugene Schieffelin was a Shakespeare fan determined to introduce to the New World every species of bird appearing in the works of The Bard. In 1890 he released 100 of the European starlings mentioned in Henry VI in New York’s Central Park. Schieffelin’s starlings multiplied quickly and spread across… Read More »

SCCyB vs CCyB: Macroprudential substitutes or complements?

By | December 23, 2019

Courtesy of Mete Feridun  Under Basel III, national authorities are allowed to introduce additional capital requirements of up to 2.5% of total risk-weighted assets to ensure that their respective national banking systems have an additional buffer of capital. This buffer provides protection against potential future losses that may arise during downward phases of credit cycles, while simultaneously… Read More »

What does Corporate Social Responsibility tell us about Bank Risk?

By | December 19, 2019

Courtesy of Florian Neitzert and Matthias Petras Sustainability is one of the dominate issues of our time. In particular, public awareness about climate change has recently increased and the associated risks to society have been on the public agenda. On a political level, this culminated in the UN-Paris Climate Agreement of 2015. Since then, movements… Read More »

Bankruptcy’s Adjunct Regulator

By | December 9, 2019

Courtesy of Alexandra Sickler and Kara Bruce Bankruptcy and consumer finance laws operate in independent silos. Many consumer advocates view bankruptcy as a remote and specialized field, while bankruptcy proponents tend to view bankruptcy as a complete and exhaustive system. Our forthcoming paper, Bankruptcy’s Adjunct Regulator (Florida Law Review), bridges these fields with a comprehensive… Read More »

Blockchain Disruption and Decentralized Finance: The Rise of Decentralized Business Models

By | December 6, 2019

Courtesy of Yan Chen and Cristiano Bellavitis Over the last few years, blockchain and its applications – such as Bitcoin – have gone through a cycle of high promise and setback. In September 2017, some commentators argued that blockchain was the most important invention since the internet and electricity. Then, a few months later, governments… Read More »

The Fed Must Reject Stealth Cut of Bank Capital Requirements

By | December 5, 2019

Courtesy of Gregg Gelzinis In a recent speech, Federal Reserve Vice Chair for Supervision Randal Quarles again publicly outlined his plan to engineer yet another decrease in the loss-absorbing capacity of the nation’s largest banks. The plan would re-design the countercyclical capital buffer (CCyB) and use misdirection to make it appear as though there would… Read More »

Spillover Effects in Securities Litigation

By | November 25, 2019

Courtesy of Dain Donelson, Rachel Flam, and Christopher Yust When a firm is sued, do its peers respond to the litigation by changing their own behavior? In our recent paper, we examine the spillover effect of securities litigation on industry peers. We focus on investor reactions and changes in peers’ disclosure and financial reporting. We… Read More »