Consumer Protection Settlements: Theory and Policy Issues

By James E. McNulty September 10, 2021 by renholding

In a new paper, I compare private and public class action settlements. I find a dearth of theoretical law and economics literature on public class actions, so I use the private class actions literature and a pivotal case study to …

Cadwalader Reviews Securitization Litigation and Regulation for 2019

By Jason Halper, Jonathan Watkins, Aaron Lang and Ailsa Chau February 5, 2020 by renholding

There were significant developments in 2019 as courts continued to issue important decisions in this space and significant legislation impacting the residential mortgage-backed securities (“RMBS”) market came into effect. A number of cases have called into question firmly rooted practices …

SEC Chair Seeks Public Input on Disclosure for Residential Mortgage-Backed Securities

By Jay Clayton October 31, 2019 by renholding

Securitization plays a critical role in the U.S. capital markets and can enhance liquidity in important sectors of the economy. In particular, residential mortgage-backed securities (“RMBS”) play a significant role in enhancing liquidity in the residential mortgage market and thereby

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(When) Does Transparency Reduce Liquidity?

By Karthik Balakrishnan, Aytekin Ertan and Yun Lee October 30, 2019 by renholding

The catchphrase “too much information” can be applied in many circumstances, personal and social, but not, surely, in relation to financial markets.

It has long been held that greater transparency, thus more information, can only increase the volume of trading …

The Valuation and Governance Bubbles of Silicon Valley

By Jesse M. Fried and Jeffrey N. Gordon October 10, 2019 by renholding

The rise and fall of The We Company IPO bubble is one of those events that, like the subprime mortgage bubble that preceded the financial crisis, calls for an examination of market structures that could have produced such a precipitous …

Cleary Gottlieb Discusses Second Circuit’s Reversals of RMBS Trader’s Fraud Conviction

By Robin M. Bergen, Joon H. Kim, Rishi N. Zutshi, Nowell D. Bamberger and Alex Janghorbani May 11, 2018 by renholding

On May 3, the Second Circuit vacated on evidentiary grounds Jesse Litvak’s conviction – after a second trial – on a single count of securities fraud related to trades of residential mortgage backed securities (“RMBS”) and remanded the case to …

Better Responses to Financial Crises

By Andrew Blair-Stanek May 17, 2017 by renholding

How can regulators best respond to financial crises? In a forthcoming article in the Duke Law Journal, I show how a law-and-economics framework can guide regulators’ responses. There are two kinds of remedies for failing to comply with a law: …

America’s Corporate Crime Dilemma

By Samuel Buell October 11, 2016 by renholding

Corporate crime has never been a more pressing, vexing, and at times infuriating topic for Americans than at present. The subject’s many difficulties both are fascinating and, at every turn, defy easy answer. The ambition of my new book, Capital …

Morgan Lewis discusses N.Y. Court of Appeals Decision Resolving Statute of Limitations Accrual for Putback Claims

By Susan F. DiCicco and Brian A. Katz July 7, 2015 by AJ

On June 11, New York State’s highest court, the Court of Appeals, rendered a highly anticipated decision in ACE Secs. Corp. v. DB Structured Prods., Inc., __ — __ (2015) (ACE Court of Appeals Decision). The decision resolves …

Regulating Against Bubbles

By Ryan Bubb and Prasad Krishnamurthy April 2, 2015 by ilyabeylin

In the Great Recession’s morality play, unscrupulous financiers on the inside of the mortgage industry exploited ordinary folk on the outside. Predatory lenders pushed unsuspecting homebuyers into teaser rate mortgages that seemed affordable but were in fact ticking time bombs. …

Competition Among the Big Three: How Multiple Credit Ratings Pay Off for Investors

By Stefan Morkoetter, Roman Stebler and Simone Westerfeld March 31, 2015 by ilyabeylin

Asymmetric information is an important characteristic of the securitization market, where products exhibit complex architecture and information about the underlying credit portfolio is highly opaque. In order to overcome these information asymmetries, issuers use rating agencies who act as agents …

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Columbia Law School's Blog on Corporations and the Capital Markets

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