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The collection of all scholarly commentary on law, economics, and more

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Taxing big uncorporations

A few days ago Paul Caron summarized moves toward corporate taxation of pass-through entities with more than $50 million gross receipts, adding links to prior posts on this subject. Today’s WSJ echoes this story, quoting Sen. Max Baucus, Senate Finance Chair: “We’re talking about business income here. Why not have the large pass-throughs … pay ... Taxing big uncorporations

Private equity and financial distress

I’ve written often, particularly in my Rise of the Uncorporation, of the upside disciplinary effect of uncorporate management.  This includes the salutary role of private equity (e.g., this recent post). But detractors argue that private equity-backed leveraged buyouts, by replacing equity with debt, make targets vulnerable to the disruption of bankruptcy.  A recent paper by ... Private equity and financial distress

FTC Microeconomics Conference

The Fourth Annual FTC Microeconomics Conference is scheduled for November 3 and 4, 2011.   Here is the call for papers: The Federal Trade Commission’s Bureau of Economics will host a two day conference to bring together scholars working in areas related to the FTC’s antitrust, consumer protection and public policy missions. Those areas include industrial ... FTC Microeconomics Conference

The Economist on the death of Howrey and future of Big Law

The Economist covers the shrinkage of Big Law, focusing on Howrey’s demise. The article covers themes in my recent papers, particularly including Death of Big Law, Law’s Information Revolution and Practicing Theory.  It particularly points out what I discussed in Death of Big Law: Howrey’s fall shows just how fragile even a 55-year-old firm can be. ... The Economist on the death of Howrey and future of Big Law

The Galleon prosecution: hoist by its own petard?

Dave Zaring asks whether the Rajaratnam trial, now doomed by a sick juror to start deliberations all over again, is headed for a hung jury.  Dave suspects the jury is more likely hung 11-1 to convict than vice versa.  But there’s another possibility:  there are a lot of charges in this cases which occupy a ... The Galleon prosecution: hoist by its own petard?

Say on pay at the SEC?

Reuters reports on Henry Hu’s somewhat controversial tenure heading the SEC’s new Division of Risk, Strategy and Financial Innovation. The SEC brought in Hu, a widely recognized expert on financial regulation, in response to its embarrassing Madoff failure.  The Reuters article discusses some reservations about how much Hu accomplished, but I want to focus on ... Say on pay at the SEC?

Prosecutorial liability and prosecuting corporate agents

Retired Justice Stevens has some interesting comments on  Connick v. Thompson, reported here. Connick, by a 5-4 conservative/liberal vote, reversed the Fifth Circuit’s affirmance of a $14 million verdict to a man imprisoned on death row for 14 years after prosecutors failed to turn over exonerating evidence.  The Court held that you need a pattern ... Prosecutorial liability and prosecuting corporate agents

Politics and Price Gouging

Commissioner Rosch gets off his second shot in against the Department of Justice in just a few weeks in the pages of the Wall Street Journal — this time in a letter to the editor: Obama’s Political ‘Price-Gouging’ If any doubts existed about whether the Justice Department is just “an arm of the administration,” they ... Politics and Price Gouging

Antitrust as Innovation Policy

The Washington Post links to the transcript of the President’s recent remarks at a Palo Alto town hall meeting at Facebook’s headquarters on April 20.  The President talked about recent issues of interest, focusing primarily on the budget, unemployment and health care.  I did see one item that may be of interest to the antitrust ... Antitrust as Innovation Policy

Jets and LBOs

I have written about the disciplinary effect of the uncorporate form, particularly in LBOs.  See, e.g., here and Chapter 8 of my Rise of the Uncorporation. Now here’s more evidence:  Edgerton, Agency Problems in Public Firms: Evidence from Corporate Jets in Leveraged Buyouts.  Here’s the abstract: This paper uses rich, new data to examine the ... Jets and LBOs

The End of An Era?

Well, perhaps not quite the end of an era given all of the intense antitrust scrutiny that continues in the high-tech sector.  But it seems like it should not go without noting that the Microsoft case will officially come to an end on May 12th.  The San Francisco Chronicle observes: In a final hearing in ... The End of An Era?

Arbitration, preemption and regulatory coordination

AT&T Mobility LLC v. Concepcion, 2011 WL 1561956 (April 27, 2011) could end up being one of the most important pro-business cases of the last several years — even more important than Citizens United. The case involved the application of Section 2 of the Federal Arbitration Act (9 U.S.C. §2), which makes agreements to arbitrate ... Arbitration, preemption and regulatory coordination