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RIP, Earl Thompson

UCLA economist Earl Thompson passed away Thursday.  Earl was a beloved figure in the economics department.  I came to UCLA a bit late in the game to experience the years when his presence was largest, though I had the pleasure of speaking with him on a number of occasions and he attended a recent talk ... RIP, Earl Thompson

Singapore, hedge funds and jurisdictional competition

While the US, via Dodd-Frank, has increased its regulation of hedge funds by requiring registration and disclosure, one important jurisdiction is pulling back and poised to reap the benefits. Per Bloomberg, Singapore declined in April to require licensing of hedge funds and attracted several new hedge funds in May and June. “Singapore did not shoot ... Singapore, hedge funds and jurisdictional competition

Intel Settlement Watch Part II

While Intel Corporation nears its settlement deadline with the Federal Trade Commission, it received good news from a federal district court in Delaware evaluating the evidence of alleged consumer harm from the discounts Intel offers to buyers.  It is also very important to note that this pass from a US court applying standards of consumer ... Intel Settlement Watch Part II

Ribstein & Lipshaw 2010 Supplement and thoughts on curriculum

The latest supplement to Ribstein & Lipshaw Unincorporated Business Entities (4th Edition, 2009) is available online at my website. There you can also find the Supplement to the Teacher’s Manual. This edition of my long-running casebook and its exhaustive teacher’s manual have been well-received. Ultimately I hope and expect this course will replace the current ... Ribstein & Lipshaw 2010 Supplement and thoughts on curriculum

The Obama tax increases

The biggest and most important issue for the next few months won’t be immigration, the New Black Panthers, or even the war in Afghanistan. Huge tax increases are headed our way, and it raises tough questions. On the one hand, signaling we are serious about deficits is likely a good thing. But, since politicians haven’t ... The Obama tax increases

Tax

Capitalism as a solution for poverty

SKS Microfinance, India’s largest microfinance lender, did a $354 million IPO Wednesday. This may encourage others to do likewise. The result would be much more money for very small loans. Sounds good, but it’s meeting objections: A publicly traded company’s traditional obligation is to make money for its shareholders, while the mission of microfinance — ... Capitalism as a solution for poverty

On Forbes.com: Let the whistleblowers trade

Dodd-Frank has elaborate provisions for encouraging reporting of fraud by rewarding whistleblowers. In my Forbes.com column for this week I propose another idea to elicit information: allowing insider trading.

Microsoft LLC

Holman Jenkins, writing in today’s WSJ, criticizes Steve Ballmer’s management failures that have left its investors with a decade of “dead money.” At bottom, this is a corporate governance problem. Manifestly, the solution is not to let management keep stepping up to the plate with shareholder money and promising home runs that never materialize. Nor ... Microsoft LLC

The shareholder maximization canard

Al Franken buys the old idea that corporate managers have a duty to maximize shareholder value. Todd Henderson appropriately sets Franken (and others ignorant of corporate law) straight. Todd reminds them that the business judgment rule gives managers the flexibility to do pretty much what they want, including help society, as long as they don’t ... The shareholder maximization canard

The government reward for doing a bad job

In the world of competitive markets, if one does a bad job, the typical result is less resources, less power, and more oversight by interested parties. If a firm makes a bad product, there will be fewer profits, lost market share, and additional attention from Consumer Reports, plaintiffs’ lawyers, and regulators. In the world of ... The government reward for doing a bad job

The shareholder wealth maximization myth

In a recent speech at the Netroots Nation, Senator Al Franken tried to frighten the crowd by trotting out the corporate bogeyman that greedily makes decisions without regard to anything other than profit. Franken told them: “it is literally malfeasance for a corporation not to do everything it legally can to maximize its profits.” Individuals ... The shareholder wealth maximization myth

Don Draper as rainmaker and filmmaker

As I discussed a few days ago, Mad Men is back. I saw two of my themes intersecting here – law firms, and filmmakers’ portrayal of business. Sunday’s first episode had protagonist Don Draper suffering the burdens of being the key guy in his office – what a law firm would call a rainmaker. As ... Don Draper as rainmaker and filmmaker