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Financial Regulation

Credit to Cronies: Government’s Heavy—IF Hidden—Hand - Event Video

2014 National Lawyers Convention
Edward J. DeMarco, Bert Ely, Paul H. Kupiec, Paul S. Atkins, Wayne A. Abernathy November 17, 2014

Key to a vibrant and increasingly productive economy is an efficient credit allocation process -- the mechanism by which all forms of credit, and not just bank loans, flow to those who can make the best use of that credit.  Do  government regulations influence and therefore distort – intentionally or not – the allocation of credit within the U.S. economy?

Bank capital and liquidity standards, consumer lending requirements, lending rules enforced by the Consumer Bureau, the Community Reinvestment Act, and government-sponsored enterprises (notably Fannie Mae, Freddie Mac, and the Farm Credit System) among other federal programs steer credit to favorites based on government priorities.  Designating large financial firms as “systemically important financial institutions” might diminish their role as independent credit providers and subject them to further government direction.   Some argue that Federal Reserve monetary policy, which greatly influences all interest rates, has consequent credit-allocation effects.  Where did this all come from, where is it going, and what it means for the future of the economy will be questions for the panel.

The Federalist Society's Corporations, Securities & Financial Services & E-Commerce Practice Group presented this panel on "Credit to Cronies: Government’s Heavy—IF Hidden—Hand" on Friday, November 14, during the 2014 National Lawyers Convention.

Featuring:

  • Mr. Edward J. DeMarco, Senior Fellow-in-Residence, Milken Institute
  • Mr. Bert Ely, Principal, Ely & Company, Inc.
  • Dr. Paul H. Kupiec, Resident Scholar, American Enterprise Institute
  • Moderator: Hon. Paul S. Atkins, Patomak Global Partners LLC; former Commissioner, U.S Securities & Exchange
  • Introduction: Hon. Wayne A. Abernathy, Executive VP for Financial Institutions Policy and Regulatory Affairs, American Bankers Association; and Chairman, Financial Services & E-Commerce Practice Group

Mayflower Hotel
Washington, DC

Something Fishy in Sarbanes-Oxley? Yates v. United States - Podcast

Criminal Law & Procedure Practice Group Podcast
Todd F. Braunstein November 06, 2014

At issue in Yates v. United States is the "anti-shredding" provision of the Sarbanes-Oxley Act which makes it a federal crime if one “knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object” with the intent to impede or obstruct a federal criminal investigation. John Yates was criminally prosecuted because he allegedly destroyed three fish that were too small to be caught legally. According to Mr. Yates, his prosecution was improper because he could not have had fair notice that a fish would be considered a “tangible object." Our expert attended the oral arguments and offered his impressions to a live Teleforum audience.

  • Mr. Todd F. Braunstein, Counsel, WilmerHale

Consumer Credit and the American Economy - Podcast

Financial Services & E-Commerce Practice Group Podcast
Todd J. Zywicki, Bill Himpler August 28, 2014

Professor Todd J. Zywicki joined a Teleforum conference call on his new book, Consumer Credit and the American Economy, co-authored with Thomas Durkin, Gregory Elliehausen, and Michael Staten. The book examines the economics, behavioral science, sociology, history, institutions, law, and regulation of consumer credit in the United States. Because of the importance of consumer credit in consumers' financial affairs, Professor Zywicki's intended audience includes anyone interested in these issues, not only specialists who spend much of their time focused on them. For this reason, the authors have carefully avoided academic jargon and the mathematics that is the modern language of economics. It also examines the psychological, sociological, historical, and especially legal traditions that go into fully understanding what has led to the demand for consumer credit and to what the markets and institutions that provide these products have become today. Bill Himpler, Executive Vice President at the American Financial Services Association, offered his comments and questions.

  • Prof. Todd J Zywicki, Author, Consumer Credit and the American Economy, and Foundation Professor of Law, George Mason University School of Law
  • Bill Himpler, Executive Vice President, American Financial Services Association

The Highs–and Lows–of High-Frequency Trading - Podcast

Corporations, Securities & Antitrust Practice Group Podcast
Brian Mannix, Joanne Medero August 05, 2014

While other fields of law are trying to anticipate the future ramifications of the widespread use of drones, robots, and self-driving vehicles, financial markets have already confronted the fact that – for about five years now – automated trading programs have made the majority of all trades in equities and commodities. Automation has substantially reduced the cost of trading, but it has also had profound effects on the structure of financial markets, and has raised questions about its facilitation of allegedly abusive practices. A 2013 documentary, “Ghost Exchange,” and a 2014 best-selling book, Michael Lewis’s Flash Boys, focused public attention on the effects of high-frequency trading (HFT) on market integrity and stability, and helped precipitate a series of aggressive enforcement investigations as well as rulemaking initiatives at financial regulatory agencies in the U.S. and abroad. Our experts reviewed the state of the debate over HFT, and possible paths forward.

  • Brian Mannix, President, Buckland Mill Associates
  • Joanne Medero, Managing Director, BlackRock Inc.