This chapter provides a basic overview of banking and financial regulation for the forthcoming Oxford Handbook of Law and Economics (Francesco Parisi, ed.). Among other things, the chapter compares traditional and shadow banking and their regulation, differentiating “microprudential”...

How should we think about regulating our dynamically changing financial system? Existing regulatory approaches have two temporal flaws. The obvious flaw, driven by politics and human nature (and addressed in other writings), is that financial regulation is overly reactive to past crises. This...

This piece is forthcoming in the special symposium issue arising out of the 2014 American Bankruptcy Institute-University of Illinois College of Law academic symposium. U.S. bankruptcy law grants special rights and immunities to creditors in derivatives transactions, including virtually...

As part of a symposium on the administrative law of financial regulation, this article shows that there is a two-to-one income disparity between members of the financial industry and their regulators. When this income disparity — which dwarfs that between other industries and their regulators...

Firms must take ever greater risks to try to innovate and create value in our increasingly competitive and complex global economy. Corporate governance law generally delegates control over excessive risk-taking to the firm's investors, principally its risk-seeking shareholders. But this does not...

This amicus brief is submitted on behalf of the defendant's position, that nothing in the contract at issue, or its commercial context, indicates an intent to depart from New York's statute-of-limitations default rule. Plaintiff alleges that its claims under residential mortgage-backed...

There's long been a debate whether corporate governance law should require some duty to the public. The accepted wisdom is not to require such a duty — that corporate profit maximization provides jobs and other public benefits that exceed any harm. This is especially true, the argument goes,...

This Inaugural Lecture in the Distinguished Visitor Public Lecture Series of Trinity College Dublin School of Law synthesizes, in a readily accessible form, several of my recent articles examining why and how governments should regulate risk-taking by banks and other systemically important...

This brief essay attempts to integrate and critique the papers being published in a law-review symposium issue on “Securitization: 10 Years After the Financial Crisis.” In that process, the essay provides an overview of the current state of securitization, identifying securitization's abuses...