F. Hodge O'Neal Corporate and Securities Law Symposium

Wall Street Scandals: The Curative Effects of Law and Finance

William G. Christie and Robert B. Thompson
This Article studies three scandals that embroiled U.S. financial markets during the past decade or so, including the Nasdaq market-makers’ use only of odd-eighths quotes, the abuse of specialist power on the New York Stock Exchange, and the mutual fund scandal. We attempt to attribute the resolution of these situations to the curative effects of markets versus regulation. We argue that the intervention of the legal system through regulation and/or…
F. Hodge O'Neal Corporate and Securities Law Symposium

The SEC As a Lawmaker: Choices About Investor Protection in the Face of Uncertainty

A problem that has dominated much of recent corporate legal scholarship is one of political economy: what drives (and constrains) the production of corporate law? As used here, “corporate law” refers to the body of regulation dealing with the allocation of power, rights, andresponsibilities relating to management and control of the corporation—a rough description that includes many of the disclosure-related demands of federal securities regulation. My paper will look at…
F. Hodge O'Neal Corporate and Securities Law Symposium

Public Symbol in Private Contract: A Case Study

This Article revisits a recent shift in standard form sovereign bond contracts to promote collective action among creditors. Major press outlets welcomed the shift as a milestone in fighting financial crises that threatened the global economy. Officials said it was a triumph of market forces. We turned to it for insights into contract change and crisis management. This article is based on our work in the sovereign debt community, including…
F. Hodge O'Neal Corporate and Securities Law Symposium

A Cognitive Theory of Trust

Claire A. Hill and Erin Ann O'Hara
Interpersonal trust is currently receiving widespread attention in theacademy. A fast-growing legal literature can draw insights from trust scholars in several other fields, including sociology, psychology, political science, economics, neuroscience, medicine, and management to explore the effects of legal policy on the nature of trust in interpersonal relationships. The issues are fundamental and worthy of more serious exploration: To what extent do legal rules, cases, and law enforcement efforts enhance…
F. Hodge O'Neal Corporate and Securities Law Symposium

The Ideological Component of Judging in the Taxation Context

Lee Epstein, Nancy Staudt and Peter J, Wiedenbeck
Despite the vast number of systematic empirical studies of judicial behavior, we know surprisingly little about how and why judges reach decisions in the business and finance context. This void is due, in part, to scholars’ abiding focus on controversies involving civil rights and liberties; indeed, based on the extant literature, it would be easy to conclude that judges, particularly U.S. Supreme Court Justices, spend their days interpreting civil rights–type…
F. Hodge O'Neal Corporate and Securities Law Symposium

Tax Expenditures, Principal-Agent Problems, and Redundancy

David A. Weisbach
This Article considers tax expenditures from two related perspectives. First, it analyzes how the incentives on Congress to use a tax expenditure change when principal-agent problems are considered. For example, it considers whether tax expenditures can reduce moral hazard or adverse selection problems created by delegations to expert agencies. Second, it considers the condition under which tax expenditures should be expected to be redundant with direct expenditures, as many are.…
F. Hodge O'Neal Corporate and Securities Law Symposium

Regulating Bankruptcy: Public Choice, Ideology, & Beyond

For almost a decade, members of Congress fiercely debated legislation that would make it harder for people to discharge their debts in bankruptcy. The legislation was finally enacted on April 20, 2005, when the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA”) was signed into law. BAPCPA became fully effective for cases filed on or after October 17, 2005. At one of the earliest hearings on the proposed…
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The Fatal Flaw of Standing: A Proposal for an Article I Tribunal for Environmental Claims

Timothy C. Hodits