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Hidden in Plain Sight: What Really Caused the World’s Worst Financial Crisis and Why It Could Happen Again

Financial Services & E-Commerce Practice Group Teleforum February 09, 01:00 PMFederalist Society Teleforum Conference Call

The 2008 financial crisis—like the Great Depression—was a world-historical event. What caused it will be debated for years, if not generations. The conventional narrative is that the financial crisis was caused by Wall Street’s actions and insufficient regulation of the financial system. That narrative produced the Dodd-Frank Act, the most comprehensive financial-system regulation since the New Deal. A competing narrative about what caused the financial crisis has received little attention -- many contend that the crisis was caused not by bad actors on Wall Street, but by government housing policies. Peter Wallison marshals evidence in support of this view in his recently-released book, Hidden in Plain Sight: What Really Caused the World’s Worst Financial Crisis and Why It Could Happen Again.

  • Hon. Peter J. Wallison, Arthur F. Burns Fellow in Financial Policy Studies, American Enterprise Institute
  • Prof. Todd J. Zywicki , Foundation Professor of Law, George Mason University School of Law

Does the Single Point of Entry Strategy Eliminate “Too Big to Fail”? - Podcast

Financial Services & E-Commerce Practice Group Podcast
Paul H. Kupiec, Peter J. Wallison January 23, 2015

In December 2013, the Federal Deposit Insurance Corporation released a proposal on the so-called “Single Point of Entry” (SPOE) strategy as a means of resolving large failing banks without financial-market disruption. In a recent paper, AEI scholars Paul Kupiec and Peter Wallison raised questions about legal support for the SPOE strategy in Title II of the Dodd-Frank Act, whether the strategy can be used for resolving the largest failed banks, and the economic consequences of using the SPOE approach to attenuate the systemic risk of a large-bank failure. To facilitate a SPOE resolution, regulators recently proposed new requirements that large financial firms have enough long-term debt and equity — or total loss absorbing capacity — to cover potential losses and bank recapitalization. Mr. Kupiec and Mr. Wallison’s paper questions whether these measures will allow authorities to resolve large banks without a bailout or disorderly break-up.

Mr. Kupiec and Mr. Wallison will presented their paper and fielded audience questions during a live Teleforum conference call.

  • Paul H. Kupiec, Resident Scholar, American Enterprise Institute
  • Hon. Peter J. Wallison, Arthur F. Burns Fellow in Financial Policy Studies, American Enterprise Institute

14th Annual Barbara K. Olson Memorial Lecture - Event Video

2014 National Lawyers Convention
John A. Allison, Eugene B. Meyer November 17, 2014

On September 11, 2001, at the age of 45 and at the height of her professional and personal life, Barbara K. Olson was murdered in the terrorist attacks against the United States as a passenger on the hijacked American Airlines flight that was flown into the Pentagon. The Federalist Society established this annual lecture in Barbara's memory because of her enormous contributions as an active member, supporter, and volunteer leader. Solicitor General Theodore B. Olson delivered the first lecture in November 2001. The lecture series continued in following years with other notable individuals. In 2014, Mr. John Allison, President and CEO of the Cato Institute, delivered the lecture. He was introduced by Mr. Eugene B. Meyer, President of the Federalist Society.

Featuring:

  • Mr. John A. Allison, President and CEO, Cato Institute; former Chairman and CEO, BB&T Corporation
  • Introduction: Mr. Eugene B. Meyer, President, The Federalist Society

Mayflower Hotel
Washington, DC

The Minimum Wage - Event Video

2014 National Lawyers Convention
Ross Eisenbrey, Diana Furchtgott-Roth, Karen Harned, David Weil, William Kuntz November 14, 2014

In January 2014, in his State of the Union Address, President Obama called on Congress to raise the national minimum wage to $10.10 an hour.  In February, President Obama used his pen to raise the minimum wage for employees working on government contracts to $10.10 through an Executive Order.  This panel will explore the policy and economics of increasing the minimum wage, which the White House asserts will lift wages for millions of Americans and boost the bottom lines of businesses.

The Federalist Society's Labor & Employment Law Practice Group presented this panel on "The Minimum Wage" on Thursday, November 13, during the 2014 National Lawyers Convention.

Featuring:

  • Mr. Ross Eisenbrey, Vice President, Economic Policy Institute and former Member, U.S. Occupational Safety and Health Review Commission
  • Ms. Diana Furchtgott-Roth, Senior Fellow, Manhattan Institute for Policy Research, former chief economist, U.S. Department of Labor
  • Mrs. Karen R. Harned, Executive Director, National Federation of Independent Business Small Business Legal Foundation
  • Hon. David Weil, Administrator, Wage and Hour Division, U.S. Department of Labor
  • Moderator: Hon. William F. Kuntz, II, United States District Court, Eastern District of New York

Mayflower Hotel
Washington, DC

The Short-Termism Debate - Event Video

2014 National Lawyers Convention
Lucian Bebchuk, Jonathan R. Macey, Robert T. Miller, Steven A. Rosenblum, E. Norman Veasey November 14, 2014

For thirty years, the economic analysis of corporate law has been based on the assumption that shareholder value is a reliable proxy for social welfare.  However, for some time now, the large majority of the shares in some public companies have been held by institutional investors, including pension funds and mutual funds.  These investors have some incentive to favor short-term profits at the expense longer-term benefits.  Can shareholder value still be reliably equated with social welfare?  Or does the current incentive structure encourage the misallocation of resources and a net social loss?

The Federalist Society's Corporations, Securities & Antitrust Practice Groups presented this panel on "The Short-Termism Debate" on Thursday, November 13, during the 2014 National Lawyers Convention.

Featuring:

  • Prof. Lucian A. Bebchuk, William J. Friedman and Alicia Townsend Friedman Professor of Law, Economics, and Finance and Director of the Program on Corporate Governance, Harvard Law School
  • Prof. Jonathan R. Macey, Sam Harris Professor of Corporate Law, Corporate Finance, and Securities Law, Yale Law School
  • Prof. Robert T. Miller, Professor of Law and F. Arnold Daum Fellow in Corporate Law, University of Iowa College of Law
  • Mr. Steven A. Rosenblum, Wachtell, Lipton, Rosen & Katz
  • Moderator: Hon. E. Norman Veasey, Former Chief Justice, Delaware Supreme Court

Mayflower Hotel
Washington, DC