What if you were a well-heeled owner of a bankrupt company but had inside information on its value and could lock in the opportunity to buy it at a low price? That would be a sweet deal! Private equity sponsors and other sophisticated insiders (“Sponsors”) have used convertible Debtor-in-Possession financing (“DIP financing”), what I call… Read More »
Business Group Heterogeneity and Affiliation Effect: Evidence from Korean Chaebols Business groups exist in many countries around the world. More recently, the emergence of powerful “tech conglomerates” such as Google or Amazon has revived concerns regarding the accumulation of economic power by such business structures. Business groups have raised substantial attention among scholars with the… Read More »
On April 20, 2023, the European Parliament adopted the new Markets in Crypto-assets Regulation (MiCA) and the revision of the Transfer Funds Regulation (TFR) to increase the transparency, disclosure, and supervision of crypto transactions. In particular, MiCA implements a bespoke regime for crypto-assets that do not qualify as “transferable securities” or “e-money” under existing definitions… Read More »
The March 2023 bank run on Credit Suisse (CS) has received much attention. As a result of this bank run, the Swiss banking regulator (FINMA) pushed for the merger of CS with UBS, another large Swiss bank, thus creating one of the biggest banking unions in history. The demise of CS shook faith in a… Read More »
In the world of student loans, things look grim. Borrowers owe an estimated $1.6 trillion in student loans—a figure which is second only to mortgage debt in the total amount of consumer debt attributed to Americans. Student loan borrower were hopeful that the Biden administration—which promised to provide up to $20,000 in relief for student… Read More »
In the lead-up to the debate about the Data Privacy Act of 2023, Financial Services Committee members received letters from consumer groups and finance trade associations, urging them to vote for or against the contentious legislation. The Data Privacy Act of 2023 garnered opposition from consumer advocacy groups and support from finance trade associations. The… Read More »
Variance among assessments of a company’s environmental, social, and governance (ESG) activities is not necessarily the product of error or bias, as is sometimes presumed in the literature. The presumption that there is a singular ESG value at which assessments must converge is counter-productive to the very nature of ESG reforms, which stem from the… Read More »
Continuous auditing (CA) was introduced decades ago to enhance the quality of assurance by continuously and automatically analyzing data running through a corporate system based on rules defined by internal auditors. As CA is designed to provide more feedback on deviations and more timely feedback compared to traditional auditing, it is expected to enhance monitoring.… Read More »
Even before law school, I became fascinated by what is sometimes called the “law of creditors and debtors.” This cat-and-mouse game between creditors and the people who owe them money was intellectually stimulating—and, I realized, terribly important. Even though the first year of law school focuses on liability, debt collection becomes all-important when judgment debtors… Read More »
Last week, Judge Analisa Torres of the United States District Court for the Southern District of New York ruled on cross-motions for summary judgement filed by the SEC and Ripple in relation to ongoing litigation that dates back to December 2020. The following is a short summary of Judge Torres’ ruling and my initial reactions.… Read More »
