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Carried interest and Swiss cheese

When I last wrote on the carried interest debate I commented on the NYT’s Andrew Sorkin’s support for characterizing private equity managers’ carried interest as ordinary income rather than capital gains. This is supposed to be a simple change that cuts fat cat fund managers down to size and fairly distinguishes what is essentially compensation ... Carried interest and Swiss cheese

Where’s the Evidence? Do Employers React to Grade Inflation?

All the rage around the law blogs this week is the question of whether law schools should be engaging in grade inflation.  The issue arises from time to time.  The NYT kicked off the discussion most recently with its story on the (gasp) retroactively applied bump given to Loyola LA law students.  You can’t miss ... Where’s the Evidence? Do Employers React to Grade Inflation?

Clawbacks

Dennis Berman, writing in yesterday’s WSJ, discussed the SEC’s case against Maynard Jenkins, former ceo of CSK, to return $4.1 million in stock option grants because accounting fraud, in which Jenkins was not involved, allegedly inflated the returns the grants were based on. This is the SEC’s first attempt to enforce SOX Section 304 against ... Clawbacks

Some Links

Intel and FTC settlement talks heat up (WSJ) Connecticut AG Richard Blumenthal leads state AG crusade against Google’s Street View data collection (WSJ) Some good coverage of the FTC Workshop on the future of journalism, i.e. whether and how to save newspapers (here, here and here) Greg Mankiw on crisis economics New antitrust complaint against ... Some Links

Solving Shelf Space Incentive Conflicts With Vertical Integration and By Contract in the Soda Market

There is a nice example in the WSJ concerning the economics of vertical contractual arrangements.  I’ve noted previously the apparent trend in the soda industry toward vertical integration and the link to the economics of promotional shelf space.  In particular, incentive conflicts between manufacturers and retailers of differentiated products over the use of promotional shelf ... Solving Shelf Space Incentive Conflicts With Vertical Integration and By Contract in the Soda Market

Does the Supreme Court Deem Price Discrimination to be an “Anticompetitive” Effect of Tying?

One of my summer writing projects is a response to Einer Elhauge’s recent, highly acclaimed article, Tying, Bundled Discounts, and the Death of the Single Monopoly Profit Theory.  In the article, which appeared in the December 2009 Harvard Law Review, Elhauge defends current tying doctrine, which declares tie-ins to be per se illegal when the ... Does the Supreme Court Deem Price Discrimination to be an “Anticompetitive” Effect of Tying?

Federalizing proxy access: the SEC vs. Congress and the states

Lucian Bebchuk objects to efforts in the financial regulatory conference committee to “gut proxy access” by imposing a 5% share ownership threshold requirement for access: He says: Hard-wiring such an ownership threshold in the financial regulatory bill would be a significant setback for shareholders and corporate governance reform. While shareholder power to elect new directors ... Federalizing proxy access: the SEC vs. Congress and the states

Pre-formation fiduciary duties in LLCs: another NY problem

I have often complained (e.g., here) of the troubling lawlessness of NY LLC law, a problem that may be affecting the use of LLCs in that state and thereby NY’s business environment. A recent example is Roni LLC v Arfa. Investors in a real estate deal sued the promoters for breach of fiduciary duty by ... Pre-formation fiduciary duties in LLCs: another NY problem

USDA Pushes Regulatory Elimination of Consumer Harm Requirement

Danny Sokol points to the Obama administration’s most recent effort to “reinvigorate” competition policy: some new proposed rules adding new sections to the existing regulations under the Packers & Stockyards Act. Emerging from the joint DOJ/ USDA agriculture workshops (see comments from Manne & Wright here; TOTM archives on agricultural antitrust here), the USDA must ... USDA Pushes Regulatory Elimination of Consumer Harm Requirement

Will the FTC Sue Apple?

I don’t know.  But apparently, industry analysts preliminarily think not.   I tend to disagree.  At least, I think its far too early to be confident in either direction. Press reports, such as this one,  are primarily relying on the report of an analyst who correctly points out that Apple’s market share would be an ... Will the FTC Sue Apple?

Broad preemption and the federal takeover of state law

Last fall Guhan Subramanian, Steve Herscovici and Brian Barbetta (“SHB”) posted a paper claiming that Delaware’s antitakeover statute (Delaware GCL Section 203) was preempted by the Williams Act because it did not leave hostile bidders the “meaningful opportunity for success” required by three 1988 federal district courts which had upheld the Delaware law back in ... Broad preemption and the federal takeover of state law

Law as an immature industry

It’s no news that law grads can’t find good law jobs and can’t pay their debts. Steve Bainbridge explains: The post-war expansion of the regulatory state, the opening of the courthouse doors to new claims during the warren Court era, and the litigation explosion provided an exogenous shock that caused demand for lawyers to rise ... Law as an immature industry