Category: Cornelius Hurley

Why the ‘Too Big to Fail’ Fight May Get a Revival

July 7th, 2014 in 2014, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

hurley11-150x150American Banker (subscription required)
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

The legislative battle over reining in big banks’ implicit guarantee is suddenly poised for a comeback. The issue is expected to reemerge as the Government Accountability Office is said to be finalizing a report on whether big banks get a subsidy based on their size, and vocal critics of “too big to fail” — including Sen. Sherrod Brown, D-Ohio — stand to hold key leadership slots in next year’s Congress…

Expert quote:

“Jeb Hensarling could step into the shoes of David Vitter. Hensarling is the darling of the Tea Party, and the Tea Party is supposedly against big government and out-of-control corporations. It wouldn’t be an alliance that would require Hensarling to deviate from his philosphy at all.”

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Appeals Court Says Judge Erred in Blocking SEC-Citigroup Settlement

June 4th, 2014 in 2014, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law, Wall Street Journal 0 comments

hurley11-150x150Wall Street Journal (subscription required)
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

An appeals court handed prosecutors and regulators a win Wednesday with a ruling that eases pressure on them to extract admissions of wrongdoing in settlements with companies…

Expert quote:

“The SEC is now caught between the legal niceties the Second Circuit has afforded them and the zeitgeist. Which is going to rule? That’s a decision they have to make.”

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Citigroup SEC Accord Revived as Agency Power Strengthened

June 4th, 2014 in 2014, Bloomberg, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

hurley11-150x150Bloomberg
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Citigroup Inc. (C)’s $285 million mortgage-securities pact with the U.S. Securities and Exchange Commission was revived as an appeals court assailed a judge’s demand for more evidence backing up the regulator’s claims…

Expert quote:

“Rakoff can take some solace by the fact that he’s moved the needle seismically on the issue.”

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LETTERS: Better Ways to Prevent Problems With TBTF Banks

June 4th, 2014 in 2014, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, OP-EDs by BU Professors, School of Law 0 comments

hurley11-150x150Wall Street Journal (subscription required)
By Cornelius Hurley, School of Law, Center for Finance, Law & Policy

The sooner we learn that the essence of the TBTF problem is the taxpayer subsidized funding of each TBTF bank, the sooner we can move on to real solutions rather than relying on the Rube Goldberg menu of solutions that includes CoCos and beggar-thy-neighbor multibillion dollar fines and convictions…

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DealBook: Regulators Explore Options for Suitable Penalties in BNP’s Sanctions Inquiry

June 3rd, 2014 in 2014, Centers & Institutes in the News, Cornelius Hurley, New York Times, Newsmakers, School of Law 0 comments

hurley11-150x150New York Times
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

United States bank regulators are descending deep into the plumbing of the financial system as they seek the most fitting punishment for the giant French bank now in the cross hairs of the law enforcement authorities…

Expert quote:

“It comes down to a matter of attrition — how many customers the bank loses during the period of suspension.”

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Building on 150 Years: The Future of National Banking

May 27th, 2014 in 2014, C-Span, Cornelius Hurley, Newsmakers, Professor Extras 0 comments

hurley11-150x150C-SPAN
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Sesquicentennial Celebration of the Office of the Comptroller of the Currency co-sponsored by the Boston University Center for Finance, Law, and Policy…

Videos of coverage:

Dodd-Frank Financial Regulations Law
http://cs.pn/1k5x9q8

The Future of Community Banking
http://cs.pn/1pC52OM

Role of Banking
http://cs.pn/1mMyjFY

Regulating Large Financial Institutions
http://cs.pn/SiL93Q

 

 

BNP Paribas’s Regional U.S. Banks Not Seen at Risk in Potential Guilty Plea

May 23rd, 2014 in 2014, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law, Wall Street Journal 0 comments

hurley11-150x150Wall Street Journal (subscription required)
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Two U.S. regional banks owned by BNP Paribas SA BNP.FR +1.08% aren’t expected to face any legal risk if their French parent pleads guilty to a criminal charge, regulators say…

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Credit Suisse plea raises risk of U.S. bank indictment

May 21st, 2014 in 2014, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

hurley11-150x150The Deal Pipeline
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Analysts and observers describe the Justice Department’s $2.6 billion landmark settlement with Credit Suisse Group as a “felony light” approach that sends a message: Big U.S. banks could be required to plead guilty for their offenses…

Expert quote:

“The Justice Department had three different choices. They could have indicted and let the chips fall where they may, they could have not indicted and continued the perception that big banks are too-big-to-jail or they could create a felony-light scenario and they chose option three.”

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New York Regulator Is Wrinkle in Bank Probes

May 13th, 2014 in 2014, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law, Wall Street Journal 0 comments

hurley11-150x150Wall Street Journal (subscription required)
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

New York’s banking regulator is keeping prosecutors guessing as they prepare landmark criminal cases against BNP Paribas SA and Credit Suisse Group …

Expert quote:

“He seems to be kind of the wild card here in that he’s displayed a willingness at least to rattle the saber and threaten the nuclear option. The whole issue is will [prosecutors] indict and are regulators willing to terminate their licenses.”

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Is Measuring the TBTF Subsidy a Distraction?

May 2nd, 2014 in 2014, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

hurley11-150x150American Banker (subscription required)
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Are the nation’s biggest banks still receiving government subsidies six years after the crisis? Two recent studies by the Federal Reserve and the International Monetary Fund suggest that globally systemically important banks benefit from implicit subsidies because the market believes they will be bailed out in the event of a crisis…

Expert quote:

“A subsidy prevents normal governance from taking place. It serves as a poison pill and as disincentive to divestitures by making all too-big-to-fail assets worth less outside the TBTF womb.”

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