In December 2022, JPMorgan Chase sued Charlie Javice, the CEO of Frank (a student financial aid start-up), alleging that Javice falsified data to justify the $175 million acquisition price that Chase paid for the company. Throughout the due diligence process, Javice portrayed that Frank served millions of users and maintained a database of related user… Read More »
My recent paper, Fee-Shifting in Bankruptcy, examines the circumstances under which courts permit and refuse parties’ recovery of bankruptcy-related attorneys’ fees as costs. It turns out that, in bankruptcy, most of the major parties are not bearing their own attorney’s fees. In this context, it is fatuous to treat the American Rule as a basic point of… Read More »
In our paper, “The Role of Academic Research in SEC Rulemaking: Evidence from Business Roundtable v. SEC,” we examine the Securities and Exchange Commission’s (SEC) use of academic research in its rulemaking. We focus on the DC District Court’s decision in Business Roundtable v. SEC (2011) to strike down the proxy-access rule, which was promulgated by the SEC… Read More »
With the global push toward sustainable investment, investors are concerned about whether the cost of investing green will result in lower portfolio returns in the long term. Are there win-win strategies where green investments can generate high returns alongside positive environmental impact? Our new paper, funded by the National Pension Hub at the Global Risk Institute,… Read More »
Substantial regulatory and enforcement resources are spent combatting insider trading in financial markets. In 2020 alone, the US Securities and Exchange Commission (SEC) employed approximately 1,300 staff members in its Enforcement Division and committed $550 million in resources to investigating and prosecuting illegal insider trading. While it is clear that insider trading occurs, opinions vary significantly as to the… Read More »
We are now one year into the global health and economic crisis caused by Covid-19, and its toxic impact on society continues. Before examining the virus’ impact on the credit cycle, it is imperative to first understand where credit markets were prior to this crisis. Analyzing that environment will help us to evaluate the immediate… Read More »
The democratization of finance is the self-proclaimed noble cause that Robinhood1 is pursuing by enabling commission-free investing for everyone. However, recent events revealed that the old saying “if it’s free, you are the product,“ has been successfully implemented in the retail investment world. In this article, we cover the recent GameStop fiasco, Robinhood’s business model, and what it means for a modern retail investor. GameStop Fiasco It all started with GameStop (NYSE: GME), a US video game retailer,… Read More »
Concerns about income inequality and supposed CEO rent extraction motivated the enaction of Section 953(b) of Dodd-Frank Act. The SEC issued new rules to implement 953(b) in 2015 and they became effective in 2017. The rules require public companies to disclose their median employee pay and its ratio to CEO pay. The CEO-to-employee pay ratio increased 1000% in the last 40 years according to Economic Policy Institute,… Read More »
This post first appeared on the Climate Risk Disclosure Lab’s website. As the 117th Congress commences, the United States is facing several immense and immediate challenges: the COVID-19 pandemic, its resulting economic crisis, and climate change among them. Against this backdrop, the House of Representatives has made protecting whistleblowers one of their first legislative actions. Every Congress starts by passing rules that all members and staff must abide by. This year, the House rules for the 117th Congress, contained in House Res. 8, included provisions concerning whistleblowers. In response… Read More »
In recent years, it has become increasingly common for corporate leaders to speak out on hot-button social and political issues. CEOs like Tim Cook (Apple) and Marc Benioff (Salesforce) have expressed their views in support of LGBTQ rights, Satya Nadella (Microsoft) and Mark Zuckerberg (Facebook) have been outspoken on immigration, and Bob Iger (Walt Disney)… Read More »
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