The Archives

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

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Citizens United and the shareholder protection gambit

Last January in Citizens United the Supreme Court delivered a blow to the opponents of corporate speech by enabling corporations to spend directly on political campaigns rather than relying on PACs and lobbying. A majority of the Court concluded that public debate could be best promoted by protecting all speech, regardless of speaker.  A sizable ... Citizens United and the shareholder protection gambit

More on lawyers and foreclosure-gate

A few days ago I wrote that a cause of foreclosure-gate was the law industry’s failure to fully adapt to mass production, at least partly because of current ethics rules. But lawyers are, of course, fully capable of litigating the mistakes that result from this business model.  Yesterday’s WSJ examines “the growth of a legal ... More on lawyers and foreclosure-gate

Should Congress Repeal the McCarran-Ferguson Act?

While I’m focused on health care and antitrust, the question above is the subject of a conference at the Harvard Law School Petrie?Flom Center which looks like it has a great lineup.  The conference is November 12th.  Here is the conference description (HT: Larry Solum). Petrie-Flom Center for Health Law Policy, Biotechnology and Bioethics at ... Should Congress Repeal the McCarran-Ferguson Act?

DOJ v. Blue Cross Blue Shield of Michigan

This should be an interesting case to watch.  As I’ve discussed, if one excludes policy speeches and restricts focus to enforcement action and activity, it has been thus far difficult to distinguish the Obama Antitrust Division from the Bush II Antitrust Division when it comes to single firm or allegedly exclusionary conduct.  But the DOJ’s ... DOJ v. Blue Cross Blue Shield of Michigan

Put-backs: How much are the banks worth?

BoA is trading around $11.  Its book value is $21.45.  The difference has a lot to do with whether investors in mortgage-backed securities will be able to get BoA (and other banks) to repurchase hundreds of billions of dollars of mortgage-backed securities because the bonds didn’t meet representations and warranties in the bond contracts.  Here’s ... Put-backs: How much are the banks worth?

Agents Prosecuting Agents, at Overcriminalization 2.0.

Tomorrow in D.C. I’m joining a distinguished group for a program called “Overcriminalization 2.0” (agenda) presented by GMU’s Journal of Law, Economics & Policy and Law & Economics Center, the National Association of Criminal Defense Lawyers, and the Foundation for Criminal Justice.  According to the program, “[t]his symposium will capture the broad consensus on the ... Agents Prosecuting Agents, at Overcriminalization 2.0.

Optimal Sanctions for NFL Hits

In response to a week with what the NFL perceives to be a large number of tackles causing injury, the league is ready to announce a new policy in which players will be suspended for certain hits the league deems to dangerous or too likely to cause injury.  This is a change from the NFL’s ... Optimal Sanctions for NFL Hits

Say on Pay

A late Monday press release from the Securities and Exchange Commission announces a rule proposal to implement the say on pay requirements of the Dodd-Frank Act.  I testified before both houses of Congress against the legislative authorizing language in Dodd-Frank that the SEC uses to promulgate the rule.  My testimony before the House Financial Services ... Say on Pay

Antitrust and the Dynamics of Competition in High-Tech Industries

On Friday, I will be participating at an event at Technology Policy Institute, where I will be discussing the titular question along with Bob Crandall, Charles Jackson, Christopher Yoo, and Bruce Owen.  Discussants are Joe Farrell, Tim Brennan, Carl Shapiro and Michael Salinger.  As suggested below, my topic will be the recent antitrust enforcement actions ... Antitrust and the Dynamics of Competition in High-Tech Industries

The roots of foreclosure-gate: incentives and lawyers

Careless or even fraudulent documentation in foreclosure actions has stalled foreclosures, stymied recovery of the housing market, threatened the earnings and even financial stability of banks, and may lead to massive securities fraud actions.  How did this happen?  Per CR: [A] combination of getting swamped with foreclosures, lack of experienced staff, the poor economic environment ... The roots of foreclosure-gate: incentives and lawyers

Must the President Defend Don’t Ask, Don’t Tell?

Usual caveats for a Lambert weekend post: Post is off-topic for this blog and represents my own opinion only. Well, he’s done it.  President Obama has ordered his Department of Justice to appeal the district court order abrogating Don’t Ask, Don’t Tell.  DOJ initiated the appeal on Thursday. Mr. Obama says that he has no choice but to do this.  While he is ... Must the President Defend Don’t Ask, Don’t Tell?

Another unintended consequence of SOX: preliminary earnings

We know that Sarbanes-Oxley imposed significant costs on firms in the interests of more accurate disclosures.  Maybe this is a cost worth bearing.  But what if one of these costs is actually less accurate disclosures? Scott N. Bronson, Chris Hogan and Marilyn Johnson of Michigan State have written The Unintended Consequences of PCAOB Auditing Standards ... Another unintended consequence of SOX: preliminary earnings