The purpose of this paper is to understand the incentive effects of existing compensation mechanisms in case of the bankruptcy of a financial institution. The paper uses insights of law and economics to predict the effects of compensation mechanisms on the incentives of depositors, financial...

Bankruptcy law sometimes takes substantive rights as it finds them under nonbankruptcy law. Other important aspects of bankruptcy law compel the development of federal common law. Professor Vern Countryman wrote that the former Bankruptcy Act: "frequently incorporates...a state statute or rule...

Claims trading has become a significant and controversial feature of American bankruptcy practice over the past thirty years. This Report chronicles the rise of claims trading in the second decade of the Bankruptcy Reform Act of 1978 and analyzes the various policy concerns it raises. Most...