Showing archive for: “Corporate Governance”
Zywicki on the Bankruptcy and the Bailout
My colleague Todd Zywicki is in the Wall Street Journal today on the merits of bankruptcy along with some public choice: General Motors looks like a financially failed rather than an economically failed enterprise — in need of reorganization not liquidation. It needs to shed labor contracts, retirement contracts, and modernize its distribution systems by ... Zywicki on the Bankruptcy and the Bailout
Hamermesh on the Point of the Bailout
Some simple economics and common sense: Governments intervene in markets all the time — and they should, in order to make markets more competitive; to solve problems of externalities (which are ubiquitous); to resolve difficulties caused by individuals’ shortsightedness, including the spurring of innovation; and to reduce transactions costs. Where does the auto bailout fit ... Hamermesh on the Point of the Bailout
The Devilish Details of Detroit’s Deal
There are some pretty scary devils in the details of this Detroit bailout legislation. This WSJ article provides some specifics. Under the terms of the draft legislation, “the government would receive warrants for stock equivalent to at least 20% of the loans any company receives.” Let’s put that in perspective. General Motors is seeking around ... The Devilish Details of Detroit’s Deal
Principles for Bailout Management
I had the pleasure last week of participating in a bailout panel at William & Mary Law School. The William & Mary Federalist Society, which hosted the event, asked each panelist to address three topics: what led to the current situation, how the bailout plan will (or won’t) fix things, and suggestions for implementing a ... Principles for Bailout Management
Bainbridge on the Cuban Insider Trading Case
Professor Bainbridge offers a very detailed analysis of the complaint in the SEC’s case against Dallas Mavericks owner Mark Cuban.
UC Irvine School of Law Update
Dean Erwin Chemerinsky and UCI School of Law are in the news. WSJ Law Blog reports on a little scuffle between Chemerinsky and Second Circuit Chief Judge Jacobs about the purported public interest mission of the law school whether it entails a distinct political leaning. Here’s Chemerinsky: Implicit in Jacobs’ remarks is the assumption that ... UC Irvine School of Law Update
Everything you wanted to know about the Citigroup-Wachovia-Wells Fargo Debacle
Coverage of the Citigroup-Wachovia-Wells Fargo situation has revealed many fundamental misunderstandings of various aspects of the debacle, such that I wanted to offer my thoughts on a few points that have been curiously misstated: 1. A discussion of “fiduciary outs” is a bit of a non sequitur here. Across the ‘net, legal experts have been ... Everything you wanted to know about the Citigroup-Wachovia-Wells Fargo Debacle
Exclusivity Agreements, the Bailout Act, and Section 126(c)
The Wachovia-Citigroup-Wells Fargo dance continues. Now, however, it seems to involve confusion about Section 126(c) of the newly adopted Emergency Economic Stabilization Act (“EESA”). Allow me to take a stab at clarifying. To bring everyone up to speed, last weekend, after Lehman was allowed to go belly-up and Washington Mutual was seized by the FDIC, ... Exclusivity Agreements, the Bailout Act, and Section 126(c)
Who Is Going to Jail For All of This?
David Zaring cuts to the chase.
Questions on the Bailout
From Peter Klein: Over and over during the last week we’ve been told that unless Congress, the Treasury, and the Fed “take”bold action,” credit markets will freeze, equity values will plummet, small businesses and homeowners will be wiped out, and, ultimately, the entire economy will crash. Such pronouncements are issued boldly, with a sort of ... Questions on the Bailout
AALS Agency, Partnerships and LLCs Section Call for Papers
Larry Ribstein is organizing the upcoming AALS session of agency, partnerships and LLCs and has posted the following call for papers: The Section on Agency, Partnerships and Limited Liability Companies is calling for papers for the 2009 AALS Annual Meeting in San Diego. We are interested in presentations on the application of modern theories and ... AALS Agency, Partnerships and LLCs Section Call for Papers
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
