Showing archive for: “Securities Law”
Old Insurance Wisdom for New AI Risks
Artificial intelligence (AI) may be new to the insurance market, but uncertainty is an old customer. Insurers have spent centuries figuring out how to price unfamiliar risks, reward precautions, and avoid betting the whole portfolio on the same weak link. AI gives them new facts to assess, not a reason to discard that experience. In ... Old Insurance Wisdom for New AI Risks
SpaceX and the New Geography of Corporate Governance
SpaceX may soon ask public investors to buy a piece of the future. The fine print may ask them to buy something else, too: a theory of corporate governance. The company’s reported initial public offering (IPO) has already drawn significant concern from institutional investors and corporate-governance observers. That concern is understandable. SpaceX reportedly seeks to ... SpaceX and the New Geography of Corporate Governance
New Financial Regulatory Reforms Could Spur the Economy
Strong and vibrant financial markets are key to a thriving American economy. Rising regulatory costs, however, pose a burgeoning threat to financial-market efficiency. Recent executive-agency initiatives to harmonize federal government oversight of U.S. financial markets and to reform existing regulatory programs are notable. A new push to eliminate anticompetitive federal financial rules could yield further ... New Financial Regulatory Reforms Could Spur the Economy
Antitrust at the Agencies Roundup: The Cat’s Tuches of Summer Edition
I had thought we were in the dog days of summer, but the Farmer’s Almanac tells me that I was wrong about that. It turns out that the phrase refers to certain specific dates on the calendar, not just to the hot and steamy days that descend on the nation’s capital in . . . ... Antitrust at the Agencies Roundup: The Cat’s Tuches of Summer Edition
Simplifying Small Firm Disclosure
An occasional reader brought to our attention a bill that is fast making its way through the U.S. House Committee on Financial Services. The Small Company Disclosure Simplification Act (H.R. 4167) would exempt emerging growth companies and companies with annual gross revenue less than $250 million from using the eXtensible Business Reporting Language (XBRL) structure ... Simplifying Small Firm Disclosure
So What’s Going to Happen to Securities Fraud Class Actions? Some Thoughts on Halliburton
On Wednesday, the U.S. Supreme Court heard oral argument in Halliburton v. Erica P. John Fund, a case that could drastically alter the securities fraud landscape. Here are a few thoughts on the issues at stake in the case and a cautious prediction about how the Court will rule. First, some quick background for the ... So What’s Going to Happen to Securities Fraud Class Actions? Some Thoughts on Halliburton
Good News for the SEC? Bad News for Markets
The Securities and Exchange Commission (SEC) recently scored a significant win against a Maryland banker accused of naked short-selling. What may be good news for the SEC is bad news for the market, as the SEC will now be more likely to persecute other alleged offenders of naked short-selling restrictions. “Naked” short selling is when ... Good News for the SEC? Bad News for Markets
Executive Compensation Symposium This Friday at Case Western’s Center for Business Law and Regulation
This coming Friday (Oct. 12), the Center for Business Law and Regulation at Case Western Law School will host what promises to be a terrific symposium on executive compensation. Presenters include TOTM alumnus Todd Henderson (Chicago Law), Jill Fisch (Penn Law), Jesse Fried (Harvard Law), David Walker (Boston U Law), David Larcker (Stanford Business), Stephen L. Brown (TIAA-CREF), Paul Hodgson ... Executive Compensation Symposium This Friday at Case Western’s Center for Business Law and Regulation
Contemplating Disclosure-Based Insider Trading Regulation
TOTM friend Stephen Bainbridge is editing a new book on insider trading. He kindly invited me to contribute a chapter, which I’ve now posted to SSRN (download here). In the chapter, I consider whether a disclosure-based approach might be the best way to regulate insider trading. As law and economics scholars have long recognized, informed stock trading may create both harms and benefits ... Contemplating Disclosure-Based Insider Trading Regulation
CEO Vacations and Stock Prices
An interesting looking empirical piece from David Yermack (NYU), Tailspotting: How Disclosure, Stock Prices and Volatility Change When CEOs Fly to Their Vacation Homes. I haven’t read it closely yet. Here’s the abstract: This paper shows close connections between CEOs’ vacation schedules and corporate news disclosures. Identify vacations by merging corporate jet flight histories with ... CEO Vacations and Stock Prices
A Decision-Theoretic Approach to Insider Trading Regulation
Regular readers will know that several of us TOTM bloggers are fans of the “decision-theoretic” approach to antitrust law. Such an approach, which Josh and Geoff often call an “error cost” approach, recognizes that antitrust liability rules may misfire in two directions: they may wrongly acquit harmful practices, and they may wrongly convict beneficial (or ... A Decision-Theoretic Approach to Insider Trading Regulation
Bainbridge on the SEC’s Conflict Minerals Disclosure Getting Business Roundtabled…
As in, “If the SEC doesn’t pull up its socks and do a serious cost-benefit analysis, it may discover that Business Roundtable has become a verb. As in, the court Business Roundtabled yet another SEC rule.” Here.
