Officer, Director, Shareholder Liability

Due Process in the Banking Industry - Podcast

Financial Services & E-Commerce Practice Group Podcast
Walter J. Mix, Hester Peirce, Dean A. Reuter July 02, 2013

Due Process in the Banking Industry - PodcastThe bank regulators require larger banking organizations to prepare and file financial projections assuming various adverse scenarios under a program called "stress testing." The Federal Reserve Board staff studies these projected financial results and approve them for some banks and reject them for other banks. If your results are rejected, you may not be allowed to pay dividends to shareholders, and you may be required to raise additional capital. Bankers have been complaining that the basis for rejection is never explained by the Fed, and the Fed has repeatedly declined to make available to the affected banks what standards it is using to approve or reject stress test results. Does this raise an issue as to whether banks are being provided due process rights in how they are regulated? Does it raise questions as to whether bank regulation is governed by the rule of law or something else? Does the Fed have a secret capital regulation that it has adopted without following the Administrative Procedures Act?


  • Mr. Walter J. Mix III, Director, Berkeley Research Group
  • Ms. Hester Peirce, Senior Research Fellow, Mercatus Center, George Mason University
  • Moderator: Mr. Dean Reuter, Vice President and Practice Groups Director, The Federalist Society

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Controlling Legal Practice: Public Ownership of Stock in Law Firms - Podcast

Professional Responsibility & Legal Education Practice Group Podcast
Francis J. Menton, Thomas D. Morgan, John E. Thies, Dean A. Reuter May 09, 2013

Controlling Legal Practice: Public Ownership of Stock in Law Firms - PodcastAll U.S. jurisdictions (except DC) prohibit anyone not a lawyer from owning an equity interest in a law firm. Proponents of the prohibition have argued that it is an element of legal professionalism and serves the interests of lawyers' clients. Great Britain and Australia have recently abandoned this prohibition, arguing that clients may be better served by well-financed practice organizations that can acquire technology and other resources for efficient practice.  Both countries have substituted regulation of practice entities' behavior for limitations on who their owners may be.

This Teleforum explores whether any changes now should be made in the U.S. approach. Our panelists have been prominent in the current debate about this issue.


  • Mr. Francis J. Menton, Jr., Partner, Willkie Farr & Gallagher LLP
  • Prof. Thomas D. Morgan, Oppenheim Professor of Antitrust and Trade Regulation Law, George Washington University Law School
  • Mr. John E. Thies, President, Illinois State Bar Association, and Shareholder, Webber & Thies, P.C.
  • Moderator: Mr. Dean A. Reuter, Vice President & Director of Practice Groups, The Federalist Society

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Shareholder Value Theory: Myth or Motivator? - Event Video

Faculty Division and the American Enterprise Institute
Lynn A. Stout, Jonathan R. Macey, Alex J. Pollock, Lee Liberman Otis May 03, 2013

Shareholder Value Theory: Myth or Motivator?Conventional wisdom holds that corporations should maximize shareholder value. In her new book “The Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations, and the Public” (Berrett-Koehler, 2012), Lynn Stout argues that this is a harmful myth. According to Stout, shareholder value thinking leads managers to focus exclusively on short-term earnings to the detriment of investors, corporations, and the public. 

According to Jon Macey, however, while shareholder value maximization may be a myth, it helpfully constrains corporate managers. Leaving corporate managers with unconstrained choices — the real result of Stout's argument — would be far more dangerous.    

Join Macey and Stout as they debate shareholder value thinking and its implications for the corporate community, public policy arena, and public.


  • Lynn Stout, Cornell Law School
  • Jon Macey, Yale Law School
  • Moderator: Alex Pollock, AEI
  • Introduction: Hon. Lee Liberman Otis, Senior Vice President & Faculty Division Director, The Federalist Society


American Enterprise Institute
Washington, DC

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The Sovereign Shareholder? Government Ownership and Corporate Law Post-Bailout - Event Audio/Video

14th Annual Faculty Conference
Lynn A. Stout, J.W. Verret, David Zaring, Donald J. Weidner, Lee Liberman Otis January 23, 2012

The Sovereign Shareholder? Government Ownership and Corporate Law Post-Bailout - Event Audio/VideoThe Federalist Society's Facutly Division hosted this panel on "The Sovereign Shareholder? Government Ownership and Corporate Law Post-Bailout" on Thursday, January 5, 2012, during the 14th Annual Faculty Conference. Speakers included Prof. Lynn Stout of UCLA School of Law; Prof. J.W. Verret of George Mason University School of Law; Prof. David Zaring of The Wharton School at the University of Pennsylvania; and Dean Donald Weidner of Florida State University College of Law as the moderator. Introduction by the Honorable Lee Liberman Otis, Senior Vice President & Faculty Division Director at the The Federalist Society.

Seven-Minute Presentations of Works in Progress - Event Audio

13th Annual Faculty Conference
Tom W. Bell, Robin Effron, Minor Myers, William Wagner, Eugene Volokh January 28, 2011

On January 7, 2011, at the 13th Annual Faculty Conference in San Francisco, the Federalist Society provided an opportunity for legal scholars to give seven-minute presentations on papers that are works in progress. Papers included "Libertarian—but not Originalist!—Constitutionalism" by Prof. Tom W. Bell of Chapman University School of Law; “Commonalities of Fact and Law” by Prof. Robin Effron of Brooklyn Law School; “The Perverse Effect of Shareholder Voting on Executive Compensation” by Prof. Minor Myers of Brooklyn Law School; and “The Jurisprudential Battle over the Character of a Nation: Understanding the Emerging Threats to Unalienable Liberty in America” by Prof. William Wagner of Thomas M. Cooley Law School. Prof. Eugene Volokh of the University of California, Los Angeles School of Law moderated.