The Archives

Everything written by Bill Sjostrom on law, economics, and more

Farewell, Larry

Larry was a brilliant, prolific, and provocative scholar who will be sorely missed.  His articles, blog posts, comments on my work, etc. sharpened my thinking and writing immeasurably.  Rest in peace Larry.  Your friend, Bill.

The AIG Bailout

A draft of my new paper entitled The AIG Bailout is now up on SSRN. Here’s the abstract: On February 28, 2008, American International Group, Inc. (AIG), the largest insurance company in the United States, announced 2007 earnings of $6.20 billion or $2.39 per share. Its stock closed that day at $50.15 per share. Less ... The AIG Bailout

Financial Crisis Explained

See here (it’s from February, but I hadn’t seen it until it was forwarded to me today so it may be a waste of your time BW).

AIG/NY Fed Credit Agreement

available here. From the 8-K: On September 22, 2008, American International Group, Inc. (“AIG”) entered into an $85 billion revolving credit facility (the “Credit Facility”) and a Guarantee and Pledge Agreement (the “Pledge Agreement”) with the Federal Reserve Bank of New York (“NY Fed”). The Credit Facility has a two year term and bears interest ... AIG/NY Fed Credit Agreement

Say on Pay in the UK

An interesting new paper by Ferri and Maber entitled Say on Pay Vote and CEO Compensation: Evidence from the UK has recently been posted on SSRN. Here’s the abstract: In this study, we examine the effect on CEO pay of new legislation introduced in the United Kingdom (UK) at the end of 2002 that requires ... Say on Pay in the UK

The Law Of Household Economics

Yesterday the W$J ran an article with the above-referenced title (see here). The gist of the article is that whenever a household is blessed with an unexpected windfall, it will be cursed by an equal, unexpected cost. When I read the column, I thought to myself that it’s funny because it’s true. Now I’m thinking ... The Law Of Household Economics


As you may be aware, in July 2007, the NASD and the member regulation, enforcement and arbitration functions of the New York Stock Exchange were consolidated into the Financial Industry Regulatory Authority (FINRA). Technically, NYSE Regulation functions and employees were transferred to the NASD, and the NASD changed its name to FINRA. Ever since, I’ve ... FINRA Rules

A softball is not so soft when it hits you in the face

So I was playing centerfield in softball the other night, lost the ball in the sun, and ended up with seventeen stitches (4 internal, 13 external) over my right eyebrow. Unpleasant picture after the jump.

Delaware is winning the LLC race.

Dammann and Schundeln have a new paper up on SSRN entitled “Where are Limited Liability Companies Formed? An Empirical Analysis” (see here) that examines the state of formation choice of 64,000+ LLCs. Here’s the abstract: We empirically study the incorporation choices or, more accurately: formation choice, of limited liability companies. Most of the firms in ... Delaware is winning the LLC race.

Death of a chinchilla

For at least two years, my boys (Liam, 9 and Ollie, 6) have been clamoring for a pet chinchilla. While perusing craigslist a few days before Ollie’s birthday, I ran across a listing for a 18-month-old chinchilla that came with a cage and all accessories (including a dust bather!) for a mere $75. Better yet, ... Death of a chinchilla

The Truth About Reverse Mergers

For those interested in small company finance, I’ve recently posted on SSRN a draft of the short piece I’ve written for the Entrepreneurial Business Law Journal symposium issue. The piece is entitled “The Truth About Reverse Mergers” and can be downloaded here. Here’s the abstract: The Article examines the reverse merger method of going public. ... The Truth About Reverse Mergers

Proxy Access: Back to the Drawing Board

Per Securities Law Daily: Under pressure from congressional leaders, institutional investors and business groups, Securities and Exchange Commission Chairman Christopher Cox Nov. 1 said he thinks the SEC “should go back to the drawing board” in early 2008 on the controversial “proxy access” issue. “I agree that we should go back to the drawing board ... Proxy Access: Back to the Drawing Board