Regulatory Enforcement in OTC Markets

Regulatory enforcement in over-the-counter (OTC) markets presents a unique challenge. Enforcement efforts by the Securities and Exchange Commission (SEC) among exchange-listed companies are facilitated by companies’ provision of audited financial statements and other extensive disclosures. Sophisticated investors and financial intermediaries, such as analysts and credit rating agencies, supplement the SEC’s monitoring efforts by reviewing corporate […]

Scoping and Defining Financial Inclusion, Access to Credit, and Sustainable Finance

The World Bank, for example, defines financial inclusion as encompassing access to credit and sustainable finance. Other definitions of financial inclusion are circular or conclusory. Writers on sustainable finance also conflate the terms with the environmental, social, and governance (ESG) movement in corporate law or the United Nations’ Sustainable Development Goals. This symposium article scopes […]

117th Congress Begins by Protecting Whistleblowers 

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 […]

Reducing Regulatory Lag Using RegTech Derived from Current Practices in Financial Services Regulation

Scholars and lawmakers have long understood that regulation suffers chronic delay between the first appearance of a “regulable activity” and a government agency’s ultimate use of effective countermeasures. Regulatory lag (RegLag), which often results from Legal Lag. Legal Lag is a law and technology term that refers to situations in which “existing legal provisions are […]

A wonderful step toward fully dematerialized securities: Germany is utterly serious about carrying out its Blockchain Strategy within Europe 

Emerging blockchain ecosystems may be one of the most potent game-changers in financial and legal services over the next decade as some European countries have made substantial progress in terms of using and supporting distributed ledger technologies (“DLT”), today commonly known as “Blockchain”. Blockchain technology is applied in different sectors including the financial sector. In […]

The OCC’s and FDIC’s Attempts to Confer Banking Privileges on Nonbanks and Commercial Firms Are Unlawful and Threaten to “Bankify” Our Economy

The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) have adopted several recent measures that attempt to confer benefits and privileges of banks on nonbank providers of financial services and commercial firms.  Those initiatives are unlawful and dangerous because they will enable nonbanks and commercial firms to undermine […]

Public Debt and Household Lending

For a large number of European economies, real estate accounts for more than 70% of wealth, whereas financial assets usually account for below 20%.  From a macroeconomic perspective, the large exposure to the real estate market represents both a vulnerability and a source of resilience: on the one hand, it exposes a large share of […]

A Review of “Taming the Megabanks: Why We Need A New Glass-Steagall Act”

The structure of the banking industry and the nature of what is commonly called “banking” has changed dramatically over the last twenty-five years as the result of the dissolution of legal restrictions on interstate banking and branching, as well as on the financial services that banking organizations can offer.  Deregulation has accelerated banking industry concentration. […]

Distributional Effects of Bank Bailouts

Financial crises lead to policy interventions that carry significant fiscal costs (Laeven and Valencia, 2013). While policy makers prefer to follow the prescription in Bagehot (1873) that public funds should only be provided to institutions that are expected to repay them, it is difficult to determine ex ante an institution’s ability to repay. The resulting […]