Category: American Banker

DOJ Must Prove Commitment to Ending ‘Too Big to Jail’

American Banker “BankThink” By Cornelius Hurley, Center for Finance, Law & Policy, School of Law In 2012, then-presidential candidate and former Massachusetts governor Mitt Romney informed the public that corporations are people too. The U.S. Department of Justice has treated them as such, bringing criminal charges against the nation’s largest banks for a host of […]

Promontory Suit Is a Reputational Catch-22

American Banker (subscription required) Cornelius Hurley, Center for Law, Finance, & Policy, School of Law Suing a regulator may be the only way for Promontory Financial Group to save its reputation for being able to work with regulators… Expert quote: “Consultants have as much credibility as the regulators give them. People hire these firms because they […]

Kids Raised During ’08 Crisis Could Have a Fear of Credit

American Banker (subscription required) Cornelius Hurley, Center for Finance, Law & Policy, School of Law It should come as no surprise that clients of Young Americans Bank, which focuses on kids and college-aged adults, are afraid of credit. But the worry is that such wariness will follow them into adulthood… Expert quote: “They might be […]

Do Market Perceptions Create SIFIs? Weekly Wrap

American Banker (subscription required) Cornelius Hurley, School of Law, Center for Finance, Law & Policy Mayra Rodríguez Valladares weighed in on the regulatory relief bill backed by Sen. Richard Shelby, arguing that his proposal to increase the asset threshold at which banks are classified as systemically important financial institutions to $500 billion could endanger the […]

The Little Bill that Could Take Down TBTF

American Banker By Cornelius Hurley, School of Law, Center for Finance, Law & Policy A House bill clocking in at a mere 341 words could accomplish what the unwieldy Dodd-Frank Act has failed to do: use market discipline to rightsize “too big to fail” banks. The legislation takes direct aim at the “financial benefits” of […]

House Bill Would Force Big Banks to Compete in Free Market

American Banker (subscription required) Cornelius Hurley, Center for Finance, Law & Policy, School of Law It’s been a bleak winter for financial reformers in the United States. Legislators have introduced, and in some cases passed, a number of bills that aim to gut various components of the Dodd-Frank Act… Expert quote: “Market perception of a […]

Threat of Delay to CIT-OneWest Deal Underscores Risk of Big M&A

American Banker (subscription required) Cornelius Hurley, Center for Finance, Law & Policy, School of Law When weighing the controversy over the CIT Group-OneWest Bank merger, set aside details like their performance and promises for the future, and just consider the players behind the $3.4 billion deal… Expert quote: “It takes a great deal of chutzpah […]

Weekly Wrap: Do Regulators Want to End TBTF or Coddle It?

American Banker (subscription required) Cornelius Hurley, Center for Finance, Law & Policy, School of Law Too Big to Kill? Cornelius Hurley, director of Boston University’s Center for Finance, Law & Policy, sounds the call for ending too big to fail… Expert quote: “The regulators’ posture is one of peaceful coexistence with TBTF, where the very thing that […]