Category Archives: Uncategorized

Are Judges Like Umpires? Political Affiliation and Corporate Prosecutions

By | February 27, 2020

Courtesy of Todd A. Gormley, Mahsa Kaviani, and Hosein Maleki The outcomes of corporate prosecutions can devastate even the largest multinational corporations and set long-lasting judicial precedents that affect how businesses operate.  For example, the 2002 guilty verdict against Arthur Andersen (AA), one of the “Big 5” accounting firms with over 28,000 employees, resulted in… Read More »

A Closer Look at CECL: What Can We Learn from the European Implementation of IFRS 9?

By | January 29, 2020

Courtesy of Arndt-Gerrit Kund and Daniel Rugilo Introduction The sub-prime crisis of 2008 drew attention to the fundamental drawbacks of the incurred loss accounting model, which determined the loan loss provisions for troubled exposures. The subsequent financial crisis revealed in particular that the recognition of impairments was not only too late, but also incomplete. As… Read More »

Can Prudential Regulation Help the Transition to a Green Economy?

By | February 22, 2019

Courtesy of Lorenzo Esposito[1], Giuseppe Mastromatteo[2] and Andrea Molocchi[3] Among the many lessons learned by the financial industry, central banks, and economists in the wake of the global financial crisis, the most important may be the relevance of systemic risk. In a market dominated by multinational financial conglomerates, developments and disruptions in one country can… Read More »

The Last Days of Stock Exchange Listings for Sovereign Bonds?

By | November 7, 2016

Courtesy of  Elisabeth de Fontenay, G. Mitu Gulati and Josefin Meyer In the largest financial market in the world—the market for sovereign debt—the practice of listing on a stock exchange remains nearly ubiquitous today. All but a handful of the highest-rated sovereign nations (such as the United States) list their international bonds—that is, bonds expected… Read More »

Using Living Wills to Break up Big Banks

By | October 11, 2016

One of the key areas of focus during Wells Fargo CEO John Stumpf’s recent congressional testimony, was the timeline of events that led up to him becoming aware of the problems within the company’s community banking division.  Despite the fact that the firm fired over 1,000 employees in 2011 for opening unauthorized customer accounts, and… Read More »