Showing archive for: “Financial Regulation”
Lynn Stout on “criminogenic” hedge funds and insider trading
Lynn Stout, writing in the Harvard Business Review’s blog, claims that hedge funds are uniquely “criminogenic” environments. (Not surprisingly, Frank Pasquale seems reflexively to approve): My research, shows that people’s circumstances affect whether they are likely to act prosocially. And some hedge funds provided the circumstances for encouraging an antisocial behavior like not obeying the ... Lynn Stout on “criminogenic” hedge funds and insider trading
The insider trading crackdown and Reg FD
Today’s WSJ explains how recent insider arrests cracking down on expert services are rooted in the SEC’s misguided Regulation FD. That rule barred firms’ employees from selectively disclosing material information to favored analysts and investors. Selective disclosure is probably legitimate under the general insider trading laws because it’s consented to by the owner of the ... The insider trading crackdown and Reg FD
Nocera on the uncorporation and the financial crisis
The Glom’s having a book club on McLean & Nocera’s All the Devils Are Here. I haven’t read the book (it takes a lot to get me to read a book by business journalists). But I have read David Zaring’s interview with his “favorite Times columnist. One of the questions and answers naturally piqued my ... Nocera on the uncorporation and the financial crisis
The insider trading sideshow in the corporate crime circus
Jesse Eisinger is upset that the wrong people are going to jail. Nobody from Lehman, Merrill Lynch or Citigroup, no top AIG or Bear Stearns executives, no big mortgage company executive, not even Angelo Mozillo. Eisinger dismisses the insider trading prosecutions as a “sideshow” to take attention away from the lack of prosecutions over the banking ... The insider trading sideshow in the corporate crime circus
Alternative careers in law
Conventional law jobs might be getting harder to find, but there are alternatives, as I noted in my work-in-process with Bruce Kobayashi described here. Recent news stories suggest the range of options. Financing divorce cases Here’s the NYT story about Balance Point Divorce Funding, with more from Christine. As the Times story notes, this is ... Alternative careers in law
Erin O’Hara on The Free Market Side of Behavioral Law and Economics
Behavioral law and economics (“BLE”) can influence legal policy analysis and regulation in many ways. On balance, it is not at all clear that this new paradigm undermines a policy commitment to markets. From one vantage point, the BLE movement can be said to help preserve markets. Importantly, those using the paradigm often start with ... Erin O’Hara on The Free Market Side of Behavioral Law and Economics
Richard Epstein on The Dangerous Allure of Behavioral Economics: The Relationship between Physical and Financial Products
Richard A. Epstein is the Laurence A. Tisch Professor of Law, New York University School of Law, The Peter and Kirsten Bedford Senior Fellow, The Hoover Institution, and the James Parker Hall Distinguished Service Professor of Law, The University of Chicago. Few academic publications have had as much direct public influence on the law as ... Richard Epstein on The Dangerous Allure of Behavioral Economics: The Relationship between Physical and Financial Products
Ronald Mann on Nudging from Debt
The idea that the regularity of behavioral departures from full rationality justifies regulatory intervention has rarely gained more credence than in the context of consumer finance. The Credit CARD Act of 2009 rests on nothing so much as the supposition that cardholder decisions about spending and repayment reflect systematic misapprehension of the likely patterns of ... Ronald Mann on Nudging from Debt
Geoffrey Manne on Interesting doesn’t necessarily mean policy relevant
Geoffrey A. Manne is Executive Director of the International Center for Law & Economics and Lecturer in Law at Lewis & Clark Law School The problem with behavioral law and economics (and its behavioral economics cousin) is not that it has nothing interesting to say, but rather that the interesting things it has to say ... Geoffrey Manne on Interesting doesn’t necessarily mean policy relevant
Trading all around the beltway
We’ve heard about insider trading by politicians and the need to stop it. But information wants to be free. Information in Washington flows through many gullies and streams. It shouldn’t be surprising that it comes through lobbyists as well. Or that hedge funds are there to scoop it up. Huang and Gao, Capitalizing on Capitol ... Trading all around the beltway
Investor-Protective Analysis or Illegal Insider Trading?
One problem with a group blog is that you don’t always know what your co-bloggers are writing while you’re drafting a post. I drafted the following post without realizing that Larry (and Steve Bainbridge) had already gone to town on the matter — in more detail than I, not surprisingly. In any event, I’m posting ... Investor-Protective Analysis or Illegal Insider Trading?
The SEC slams venture capital
Dodd-Frank imposed registration requirements on advisors of hedge funds. The act exempted venture capital funds but left it to the SEC to define these funds. The SEC has now proposed a definition as part of new rules implementing Dodd-Frank’s hedge fund provisions. According to the SEC’s press release, a venture capital fund is a private ... The SEC slams venture capital
