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FATCA is working!

by Walter Olson on February 20, 2014

The number of Americans who’ve turned in their passports and renounced citizenship has increased more than tenfold in five years, to 3,000 in calendar 2013. [USA Today] Earlier on the burdensome expatriate tax and regulation measure here, here, here, and generally here.

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Many previous posts in this space have addressed the Foreign Account Tax Compliance Act, which presumes to regulate overseas banks and financial institutions that do business with Americans, and which goes into effect next June. So it’s nice to see the Paper of Record running a reasonably informative introductory piece on its problems, even if at too late a date to get the thing stopped. “Global banks and investment firms have made their dislike of the law known, though they are reluctant to speak out individually” — and how common that last point is these days, given the retaliatory potential of the U.S. government’s vast regulatory and enforcement apparatus for a business that does dare to speak out. Still, a few critics are willing to show their heads above ground, including

Georges Ugeux, a dual Belgian-American citizen, a lecturer at Columbia Law School and the founder of Galileo Global Advisors, an international business consulting firm. He described the law as “bullying and selfish.” The United States, he said, “is acting outside its borders as if they were its home.”

Sen. Rand Paul of Kentucky has introduced legislation to roll back part of the law, and there is a site called RepealFatca.com. [Lynnley Browning, NYT via TaxProf]

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..a surge in U.S. citizenship renunciations by expatriates [Bloomberg] The United States is “the only nation in the Organization for Economic Cooperation and Development that taxes citizens wherever they reside,” a departure whose disincentive effects are magnified now that Congress is insisting on regulating foreign financial institutions that deal with Americans. Earlier on FATCA here. More: Dan Mitchell, Cato.

Banking and finance roundup

by Walter Olson on December 17, 2014

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Politics roundup

by Walter Olson on December 3, 2014

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September 2 roundup

by Walter Olson on September 2, 2014

  • Police have traced the crime wave to a single micro-neighborhood in the California capital [Sacramento Bee]
  • “Adam Carolla Settles with the Patent Trolls” [Daniel Nazer/EFF, Reason, related eight days earlier and previously] eBay takes on Landmark in the E.D. of Texas [Popehat]
  • Frank Furedi on law and the decline in childrens’ freedom to roam [U.K. Independent]
  • On “ban the box” laws re: asking about job applicants’ criminal records, it’s sued if you do, sued if you don’t [Coyote]
  • Fake law firm websites in U.K. sometimes parasitize the real ones [Martha Neil, ABA Journal]
  • What C. Steven Bradford of the blog Business Law Prof reads to keep up (and thanks for including us on list);
  • As applications to renounce U.S. citizenship mount, many related to FATCA, our government hikes fee for doing so by 422% [Robert Wood, Forbes]

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  • Payday lenders sue federal agencies over Operation Choke Point [Bloomberg News, Business Journals, earlier; more, Funnell]
  • Speaking of those lenders: “California Supreme Court to review ‘rent-a-tribe’ arrangement for payday lenders” [CL&P, more]
  • “If someone starts trying to blame the Global Financial Crisis on ‘de-regulation’, you can stop reading…” [Lorenzo via Arnold Kling]
  • Can we just admit that the feds’ real target in the Credit Suisse case was the bank’s customers? [ABA Journal]
  • Maryland does not approve of Bitcoin [my Free State Notes via Kevin Funnell]
  • Behind Halliburton v. Erica P. John Fund, SCOTUS’s big case on securities class actions, two lawprofs are jousting [Alison Frankel, Reuters, and there's a Cato connection; earlier]
  • For expats, FATCA raises “prospect of being discriminated against as an American for all things financial” [Peter Spiro/OJ; Sophia Yan, Money] More renounce U.S. citizenship [Yahoo] A Canada-based FATCA resource [Isaac Brock Society] Earlier here, etc.

Surveillance roundup

by Walter Olson on December 12, 2013

  • “That Thing They Said They’re Not Doing? They’re Totally Doing.” [Daily Show with Jon Stewart] “Exactly What the State Says to Deceive You About Surveillance” [Conor Friedersdorf]
  • “Warrantless Cellphone ‘Tower Dumps’ Becoming Go-To Tool For Law Enforcement” [Tim Cushing, TechDirt; Ellen Nakashima, Washington Post; David Kravets, Wired; USA Today (local law enforcement using, not just federal)]
  • Google, Apple, Microsoft, Facebook, Twitter, Yahoo, AOL, LinkedIn, but telecoms absent: “U.S. Tech Industry Calls for Surveillance Reform” [Corporate Counsel, EFF, Marvin Ammori/USA Today]
  • New Federalist Society symposium on NSA/FISA surveillance and bulk data collection includes names like Randy Barnett, Jim Harper, Jeremy Rabkin, Stewart Baker, Grover Joseph Rees [Engage, Randy Barnett]
  • Nowadays “law enforcement can feel free to admit their traffic stops are pretextual” Thanks, Drug War! [Popehat] “Sobriety Checkpoints Paved Path to NSA Email Spying” [Wired]
  • FATCA, the intrusive overseas tax enforcement law, isn’t couched in public controversy as a federal data-snooping issue, but it should be [Radley Balko, McClatchy]

Politics roundup

by Walter Olson on December 11, 2013

  • “Who’s Afraid of Political Speech?” (spoiler: incumbents) [Roger Pilon, Cato] “None of this was perceived as a major problem so long as the 501(c)(4) category was dominated by the political left” [Brad Smith, WSJ]
  • Texas trial lawyers not all of one mind over extent of political involvements [Texas Tribune, Southeast Texas Record]
  • Sen. Mark Pryor, a key architect of the terrible, horrible, no-good, very bad CPSIA law, faces tough re-election race in Arkansas [Politico]
  • RNC asked to take stand for Americans overseas hurt by FATCA tax law [McClatchy]
  • Richard Epstein recalls Chris Christie’s unlovely tactics as a prosecutor [Ira Stoll, Future of Capitalism]
  • That time Texas politico Wendy Davis sued the Fort Worth paper over its coverage of her campaign [Andrew Stiles, NRO]
  • “Low political knowledge levels mainly due to lack of demand for info, not lack of supply” [Ilya Somin, Jack Shafer]
  • SEC backs off plan to expose companies to harassment over outlays to politically oriented nonprofits, and NYT (thinking only of shareholders’ welfare of course) is sad about that [Marc Hodak, David Silvers/CEI, NYT] Sen. Warren seems to enjoy new capacity to use position, Durbin-like, to punish political foes [David Henderson]

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At Treasury’s mercy

by Walter Olson on November 14, 2013

How “money laundering” regulations give the U.S. Treasury power to destroy foreign banks [Stewart Baker, Volokh] Meanwhile, if Canadians imagine that the Foreign Account Tax Compliance Act (FATCA) is something only Canadian-Americans need to worry about, they should think again [Maclean's]. Excerpt:

To say that FATCA is controversial is an understatement. The law is so complex and onerous to implement that some foreign banks have reportedly kicked out their U.S. clients in order to avoid dealing with it. Americans living abroad are queuing to give up their U.S. passports over it. The other problem with FATCA is that it asks foreign banks to do things that are often illegal in their home countries, such as passing on certain private information.

Earlier on “know your customer” here and on FATCA here.

  • After bank burglarizes Ohio woman, law will give her curiously little satisfaction [Popehat]
  • North Las Vegas scheme to seize underwater mortgages through eminent domain raises constitutional opposition [Kevin Funnell]
  • “The SAC Insider Trading Indictment” [Bainbridge, WSJ MoneyBeat]
  • “He who sells what isn’t his’n/Must buy it back or go to prison.” Most naked short selling driven by fundamentals, study says [Daniel Fisher]
  • NY AG Schneiderman to Thomson Reuters: don’t you dare sell early access to the market-moving survey you pay for [Bainbridge]
  • “The Confidential Witness Problem in Securities Litigation” [Kevin LaCroix]
  • “The puzzling return of Glass-Steagall” [Tabarrok]
  • “FATCA: How to Lose Friends, Citizens and Influence” [Colleen Graffy, WSJ via Paul Caron/TaxProf, earlier]

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  • Employer mandate not the only impractical reg being postponed: “IRS Delays Implementation of FATCA” [Paul Caron; earlier]
  • Foreign banks whipsawed betwen U.S. terrorism-finance liability and privacy laws in home countries [Daniel Fisher]
  • “NY Fed Official: Let’s ‘Facilitate’ The Seizure Of Underwater Loans” [Kevin Funnell]
  • “If anything, the data suggest [home] ownership … inversely correlated with political stability and rule of law.” [Michael Greve]
  • Revisiting the Randy and Karen Sowers structuring case [Kathleen Hunker, Bell Towers; earlier]
  • “Can we improve payday lending?” [Andrew Sullivan]
  • When if ever should the SEC pay bounties to attorneys to snitch on their clients? [Prof. Bainbridge]

June 15 roundup

by Walter Olson on June 15, 2013

  • “The NYT revisits the Tawana Brawley rape hoax scandal — and Al Sharpton’s role.” [Ann Althouse]
  • Is there any hope of reforming or repealing FATCA, the crazy overseas banking regulation? [Frederic Alain Behrens, SSRN via TaxProf, earlier here, etc.]
  • Urbanophile is no fan of Toronto mayor Rob Ford, but also no fan of the campaign to drive him from office [Aaron Renn]
  • Landlords face legal risk taking on ex-offenders — so where are they supposed to live? [Volokh]
  • When does a strong central state advance individual liberty? Arnold Kling reviews Mark Weiner’s The Rule of the Clan [EconLib]
  • Unenforceability of contract holds back Indian tribes’ prosperity [Terry Anderson]
  • “Oklahoma High Court Nullifies State Tort Reform Law” [WLF, TortsProf, Tulsa World, Reuters, NewsOK, Beck ("the Oklahoma Supreme Court was plainly out of control in Ysbrand, and unfortunately it remains out of control to this day"), Douglas v. Cox]

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Banking and finance roundup

by Walter Olson on November 14, 2012

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Financial roundup

by Walter Olson on August 21, 2012

  • New York plaintiff wanders the South looking for ATMs out of compliance with federal fee sticker regulation [Kevin Funnell, Bank Lawyers' Blog, earlier]
  • In the mail: Stephen Bainbridge, “Corporate Governance After the Financial Crisis” (Oxford, 2012), with blurb from NYT “Deal Professor” Steven Davidoff: “an important book for those seeking to understand the theoretical and practical implications of Dodd-Frank, Sarbanes-Oxley, and the federal government’s foray into corporate regulation.”
  • American lawprof understandably unpopular trying to defend FATCA to the Swiss [TaxProf, earlier here, etc.]
  • Bank is trustee for mortgage holders, says loan servicers are responsible: “LA Files Big-Bucks Suit Against ‘Slumlord’ US Bank, Blames Lender for Condition of Foreclosed Homes” [ABA Journal]
  • “Swiss Banks Face ‘Slow Death’ As Foreign Powers Chase Undeclared Assets” [Giles Broom, Bloomberg/Business Insider]
  • “A comprehensive list of hyperinflations in history” [Steve Hanke/Nicholas Krus, PDF, via Ian Vasquez, Cato]
  • Warning: regs could “wipe out community banking industry by end of this decade” [Cam Fine, ICBA via Iain Murray]

July 25 roundup

by Walter Olson on July 25, 2012

  • Town of Gold Bar, Wash. (pop. 2,100) brought to brink of bankruptcy by multiple lawsuits following political feuds; “We are going broke winning lawsuits,” says mayor [Monroe Monitor via ABA Journal]
  • “No one in Youngstown Ohio has a Swiss bank account…except maybe that big new Swiss employer in town?” [Matt Welch, earlier] William McGurn: FATCA and the IRS’s reach abroad [WSJ via TaxProf, earlier here, here] Politicians and lawyers demand “improvements” to IRS bounty-paid-informant program, but what if anything they improve may depend on your point of view [TaxProf, earlier]
  • A human rights professor endorses a new model of residential facility that comes with names like “Freedom Place.” But what’s that on the door — could it be a lock to prevent escape? [Maggie McNeill] Romney spokesman says he’ll smite smut, Gov. Gary Johnson takes a more libertarian view [Daily Caller]
  • New Mark Herrmann book on in-house lawyering [Victoria Pynchon, Scott Greenfield, Paul Karlsgodt]
  • Mortgage eminent-domain seizure plan raises serious constitutional concerns [Andrew Grossman, earlier here, here]
  • Central casting? Send over one “business basher,” please: Sidney Wolfe says $3 billion Glaxo settlement too lenient [CL&P, earlier]
  • Ted Frank pre-vets the possibilities for Romney VP [PoL] Romney’s law and legal policy team [Brian Baxter, AmLaw Daily]

European roundup

by Walter Olson on February 2, 2012

  • Overseas press excoriates new FATCA tax-Americans’-foreign-earnings law; some foreign banks now turn away American customers [Dan Mitchell, Cato, Reason] “The Fatca story is really kind of insane.” [Caplin & Drysdale's H. David Rosenbloom, NYT via TaxProf] Will Congress back down? [Peter Spiro/OJ, more]
  • Important new book from James Maxeiner (University of Baltimore) and co-authors Gyooho Lee and Armin Weber on what the U.S. can learn from legal procedure overseas: “Failures of American Civil Justice in International Perspective” [TortsProf]
  • Don’t do it: British administration mulls further move away from loser-pays rule in search of — what exactly, a yet more Americanized litigation culture? [Guardian, Law Society]
  • Apparently in Norway it’s possible to lose one’s kids by feeding them by hand [Shikha Dalmia, Reason]
  • Financial transaction tax? Ask the Swedes how that worked out [Mike "Mish" Shedlock, Business Insider]
  • Notes from conference on globalization of class actions [Karlsgodt] Related: Adam Zimmerman;
  • “Another conviction in Europe for insulting religion” [Volokh; Polish pop star] Campus secularists’ speech under fire in the U.K. as “Jesus and Mo” controversy spreads to LSE [Popehat] British speech prosecution of soccer star [Suneal Bedi and William Marra, NRO]