“I mean, frankly, I am totally puzzled, given that plaintiffs’ bar in this area uses the Wall Street Journal as their source of clients and cases, right? You guys read it every day, looking for scandal, right? Other people read People Magazine, but you read the Wall Street Journal.” – Judge Naomi Reice Buchwald (S.D.N.Y.), during a proceeding on the LIBOR class actions. [Staci Zaretsky, Above the Law] “And in other news, the Sun rose today.” [@LawyerKitty]
Posts tagged as:
Wall Street
Wait till you see how the market reacts, advises Marc Hodak [Hodak Value]
John Carney, Daniel Fisher (more), Ira Stoll, David Henderson, and Jonathan Weil have some questions about it.
- Wendy Murphy brings her believe-the-accuser shtick to the University of Virginia [KC Johnson, Minding the Campus]
- UK: foster parents in Rotherham might want to take care not to belong to the wrong political party [Telegraph]
- “The Disappearance of Civil Trial in the United States” [John Langbein, Yale Law Journal & SSRN]
- “Liability Is ‘Wrong’ Solution for Rating Agencies” [Mark Calabria, Cato at Liberty] Mere days later: “Sixth Circuit Rejects Ohio Pension Fund Suit Against Rating Agencies” [Adler]
- “Yes, it is now illegal to be fully nude in San Francisco *unless you are in a parade*” [Lowering the Bar]
- Once lionized in press: “Former Ohio AG Loses Law License for 6 Months Over Ethics Violations While In Office” [ABA Journal, Adler]
- Facebook says it may go after some lawyers who’ve repped adversary Ceglia [Roger Parloff, Fortune]
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- 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]
“Could the only cash payment so far from a credit rating agency in shareholder litigation stemming from the financial crisis go entirely to plaintiffs’ lawyers? It’s entirely possible, based on documents filed this week in consolidated shareholder derivative litigation against Moody’s.” [Nate Raymond, Reuters]
- “Help, I left my kids to wait in the car for less than five minutes, now I’m on trial for child endangerment” [Skenazy] “N.Y. State Senate Passes Bill Outlawing Kids Under 8 Waiting in Cars” [same]
- “Greek court dismisses charges against German magazine for denigrating national symbol” [AP]
- Pre-clearance for financial innovation, as with drugs and the FDA? Bad idea [Mark Calabria/Cato, The Economist, Thom Lambert]
- NYT, Reuters misreport effect of Stand Your Ground laws [Jacob Sullum, Robert VerBruggen/NRO, earlier here, etc.]
- “Attorney advises against talking to Baltimore Sun in email mistakenly sent to Baltimore Sun” [Andrew Beaujon, Poynter]
- Ken at Popehat knows how to pick his enemies [first, second, third posts, Philly Law Blog]
- “Now Can We Start Talking About the Real Foxconn?” [Tim Culpan, Bloomberg]
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Not a parody: A Columbia University course will give students credit for Occupy Wall Street activism [CBS New York]
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With some help from Cato colleagues:
- As bailouts go, Fannie/Freddie’s is on track to cost more than TARP [Mark Calabria; related, Arnold Kling] “Engineering the Financial Crisis: Systemic Risk and the Failure of Regulation” [Cato forum this past Thursday]
- Just like Valley Forge out there in the snow? Are you sure? [Ann Althouse]
- Student loans have become more burdensome, especially given inability to discharge in bankruptcy. Who if anyone deserves blame? [Kenneth Anderson, Kling, Mystal/Above the Law] President’s proposed student loan revamp “won’t cost taxpayers” (and if you believe that one…) [Neal McCluskey]
- NY police union rep: we’ll sue protesters if they hurt us [USA Today]
- No new graphic ideas since, what, 1893? New Yorker envisions top-hatted capitalists in whiskers [David Boaz] Some demographics behind income inequality [Mark Perry, more, yet more, Will Wilkinson (PDF), Reihan Salam, Political Calculations]
- Unions rally some protesters to intimidate businesspeople at their homes; nothing new about that except the label [CNN, Business Insider, earlier]
Some fans of the Occupy movement, such as Cory Doctorow at BoingBoing, have been hyping a research paper alleging that 150 companies control the world economy through interlocking ownership shares. Turns out most of the leading positions in the supposed “control” network are held by… mutual fund operators and other managers of collective investment vehicles. Tyler Cowen, Yves Smith and Tim Worstall offer debunking assistance.
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My new Cato post has a suggestion for Time magazine: how about prosecuting only the executives who’ve actually committed crimes? (& Kenneth Silber, RealClearPolitics “Best of the Blogs”). Related: Politico.
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It appears President Obama “will nominate former Ohio Attorney General Richard Cordray to be the first director of the Consumer Financial Protection Bureau (CFPB),” according to my colleague Mark Calabria, who recounts Cordray’s mixed record on topics of business litigation (he withdrew an abusive lawsuit against lead-paint manufacturers, while also campaigning against foreclosures). Earlier coverage here.
P.S. Daniel Fisher at Forbes reports that securities class action lawyers appear to adore Cordray, to judge from his campaign finances. John Berlau finds him inclined toward heavy-handed regulation, while Neil Munro wonders about his data privacy defense record.
An accusatory film about the financial crisis glides over some inconvenient complications. [Ezra Klein, Washington Post]
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Magical thinking at the FDIC [David Skeel via Bainbridge]
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That could be the result of the new institution of elaborate compliance system mandates that could prove to be beyond the capacity of fledgling start-ups, per Marc Hodak:
So, the government decided it had to increase regulations [on] the one part of the financial services sector -– hedge funds –- that had nothing to do with the financial crisis. And because the government felt compelled to spend gobs of taxpayer cash to bail out financial institution[s] that were too big to fail, Congress created a raft of regulations whose main effect will be to crush entrepreneurship and compel waves of consolidation. And the people who pushed for this regulation, who inadvertently insisted that the fixed costs of doing business in America are not yet high enough, will be shocked to find that only the big survive.
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- Dodd-Frank major oops: Faced with new liabilities, agencies refuse to let their ratings be used in bond issuance [WaPo, Salmon] SEC scurries to suspend requirement for six months while it figures out what to do [Salmon]
- Left-leaning law lectern: study of newly hired lawprofs identifies 52 liberals, 8 conservatives [Caron, ABA Journal, Lindgren/Volokh]
- “Progress in protecting gripe site owners against silly trademark claims” [Levy, CL&P]
- “Congress Investigates Beck, Ingraham Advertisers” [Stoll]
- “Uncle Sam Kicks Out Legal Immigrants for Down Profits in Recession” [Shapiro, Cato]
- Judge punishes Goodyear for discovery heel-dragging by denying it chance to disprove liability in $32M case [Las Vegas Sun]
- “$2.3M verdict against Dole thrown out on fraud grounds” [PoL, background]
- Paul Campos vs. Elena Kagan: this time it’s personal [Lawyers Guns & Money]
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