Business Law Prof Blog: Corporate & Securities Law

Home -> Law Blog Directory -> Corporate & Securities Law Blogs

OR PHONE (866) 635-1838 for Bankruptcy Help, (866) 635-6190 for Divorce,
(866) 635-2689 for Personal Injury or (866) 635-9402 for Criminal Defense

Find a Local Lawyer

Bankruptcy (866) 635-1838
Divorce (866) 635-6190
Personal Injury (866) 635-2689
Criminal Defense (866) 635-9402

Corporate & Securities Law

Business Law Prof Blog

Business law resources, information, and news for the academic community

Post Frequency: 11.8/day

Last Entry: April 01, 2011 at 11:04:42

TARP II Terms: The New Bank Bailout Program

Posted on February 25, 2009
Treasury today issued the terms for its new Capital Assistance Program (CAP) for handing out TARP funds. There are some very interesting wrinkles. First, the government will purchase funny convertible preferred stock instead of preferred stock and warrants (on common)...

Bernanke's Reassurance Scare

Posted on February 25, 2009
To reassure the market that the federal government would not nationalization Bank of American and Citigroup the Chairman of the Federal Reserve said "We do not need majority ownership to work with the banks... We have very strong supervisory oversight...

Government Into Car Companies Too Deep to Get Out?

Posted on February 23, 2009
The principals in the auto companies are negotiating in light of a government bailout. This makes their negotiations difficult and less than satisfactory; everyone is encourage to hold out. We now find that even if an auto company takes a...

An Intriquing Legal Issue

Posted on February 20, 2009
Some banks who took TARP I money did so under a clause that allows the government to unilaterally change the terms of the deal. What is the legal effect of such a clause. Assume the government now wants to cap...

To access this complete feed in the blog feed reader login or register for free.

Who Is the Sucker??

Posted on February 19, 2009
Now that the new Administration's economic proposals are trickling out we can add them all up and see who is taking it on the chin, who is getting played for the sucker. The old advice for players at the poker...

Obama's Homeowner Affordability and Stability Initiative

Posted on February 18, 2009
The President announced and Treasury published details of a new Homeowner Affordability and Stability Initiative today. The press is struggling to get the details correct. Here is the basis of the Initiative. To be eligible, a homeowner must have defaulted...

The Auto Bailout: A de facto Nationalization

Posted on February 18, 2009
General Motors and Chrysler have petitioned the government for another $22 B in loans to keep both companies solvent and running. In exchange for the new money they have offered restructuring plans that, among other things, fire workers. GM promises....

One Bright Spot in the Bailout--Commerical Paper

Posted on February 17, 2009
The Fed's program to help commercial funds has worked well. Worried about the Reserve Primary Fund's "busting the buck," the Fed offered to guarantee price levels in money market funds and buy from such funds illiquid assets (ABSs). The effect...

Kansas and California Short on Cash

Posted on February 17, 2009
Kansas and California have suspendend tax refund checks and appear to be unable to met their state payrolls. http://www.kansas.com/735/story/701750.html They are desperate for cash and can no longer borrow, even against healthy accounts. This all comes after the passage of...

Now We Can Read the Stimulus Bill

Posted on February 16, 2009
After the Stimulus Bill passed Congress in a rush, over 1,000 pages drafted late Thursday night and passed early Friday morning in the House and late Friday night in the Senate, we now have time to read the bill. There...

Law Firm Layoffs

Posted on February 13, 2009
Blogs are reporting large law firm layoffs this week. E.g., http://blogs.wsj.com/law/2009/02/12/21209-the-darkest-day-ever-for-big-law-firms/

CBO Stays Stimulus Bill Worse that Doing Nothing

Posted on February 06, 2009
The Congressional Budget Office, hardly a Republican bastion, has reported that the stimulus bill will lead to a lower GDP over 10 years than if Congress did nothing. The bill will crowd out private investment that has a higher chance...

More Mortgages in Trouble: Neg-Am and Option-Am

Posted on February 06, 2009
The housing crisis is not over if we address subprime or even alt-A mortgages. While the subprime crisis may be peaking, there's another tsunami of defaults coming, this time from "prime" borrowers. Option Arms, Neg-Am's, and Alt-A mortgages, totaling in...

Arguments Over the History of Government Stimulus Packages

Posted on February 06, 2009
We all know the familiar quote: "Those who do not know history are doomed to repeat it." But there is another: "Those who know history are doomed to spin it." The history of the government works packages in Japan in...

The Bank of America/ Merrill Lynch Deal: Questions, Questions

Posted on February 05, 2009
The Wall Street Journal's excellent front page story on the details behind the Bank of America purchase of Merrill Lynch raises many, many questions, both political and legal. The story reveals a Secretary of Treasury that forces an unwilling CEO...

Executive Pay Caps: Goldman in the Driver's Seat -- Again

Posted on February 04, 2009
After the Treasury announcement at 11:00 of caps on executive salaries the stock market dropped from positive to negative and Goldman stock price shot up 6 percent will Bank of America stock price dropped like a rock. Goldman is in...

The New Treasury Caps on Salary

Posted on February 04, 2009
Treasury has released new rules on executive compensation for financial institutional that receive federal bailout funds. In essence, those that get exceptional amounts cannot pay executives more than $500,000 in cash and, if they use stock or stock options, the...

Dow's Busted Deal for Rohm and Haas

Posted on February 04, 2009
Dow Chemical agreed to buy Rohm and Haas and signed a very, very seller biased contract. Now Dow wants out and seeks court sanction to do so. Is there room in the contract language? The Material Adverse Change Clause is...

Gantler v Stephens: Delaware Chancery Court Struggles Con't

Posted on February 03, 2009
In a very unusual move, an en banc panel of the Delaware Chancery Court overruled a decision by a Vice Chancellor. See Gantler v Stephens (Jan. 27, 2009). The opinion is unusual because each of the Chancellors usually circulate their...

The Hidden Issue in the "Bad Bank" Solution: Rotten "Good Banks"

Posted on February 03, 2009
The press is reporting that President IBM's advisor's are considering a good bank/bad bank solution to financial institution crisis. The government will buy the "toxic" illiquid assets held by banks, leaving a good bank, and put the assets in one...

TARP Terms: Obama Could Get Bonus Clawbacks

Posted on February 03, 2009
Banks, reading the small print in their term sheets after having received TARP funds have discovered that the federal government "unilaterally reserved" the right to make changes in the conditions that accompanying the acceptance of the money. In other words,...

Sobering News: The French Reject Our Socialist Stimulus Plan

Posted on February 03, 2009
The Prime Minister of France, Fillon, has rejected a call for an "Obama-style" stimulus plan that gives cash directly to blue collar workers and the unemployed. France has opted for a modest stimulus of $10b to infrastructure projects and another...

Daschle and Geithner: The Damage to Tax Collection Has Been Done

Posted on February 03, 2009
Whether the President appoints Daschle or not, the damage has been done. Anyone close to tax enforcement knows that voluntary compliance with tax laws is necessary and essential for the system to work. The IRS does not have the resources...

Protectionism and Crisis

Posted on February 02, 2009
World leaders at Davos expressed concern over American protectionism in our new economic crisis relief packages. They are worried about 1) "Buy American" policies in Public Works projects; 2) "Loan American" pressure on banks recieveing bailout money; 3) Tax subsidies...

Obama on Profits

Posted on January 31, 2009
The press has well covered President Obama's remarks on "shameful" Wall Street bonuses paid last week. As it should. One phrase in his remarks is odd, however. He added: "There would be time for them to rake in profits and...

Government's Knee-Jerk Responses in an Economic SlowDown

Posted on January 31, 2009
Reading the country's economic history one cannot help but be struck by the pattern in government responses to any economic slowdown. In order the government will: 1) Attack market players (short sellers,speculators, and those who use leverage), 2) Attack the...

Roche's "Hostile" Bid for Genentech

Posted on January 31, 2009
Roche has announced a "hostile" bid for Genentech at $86.50 a share. Sounds simple enough. It's not. Roche already owns 54 percent of the stock. It is making a hostile bid for the remaining shares in a company it already...

Stimulus Bill

Posted on January 30, 2009
The press and commentators are picking apart the House and the Senate Stimulus Bill, noting many (most) of the items are not directly related to quick job creation because they are, among other things, 1) time delayed, 2) promoting social...

Geithner the Pragmatist

Posted on January 30, 2009
Geithner is know as a "pragmatist." This is why he only paid two years of back taxes when he owed four; the statute of limitations had run on the two years. He passes strict new anti-lobbying rules and then hires...

Hedge Fund Whipsaw

Posted on January 30, 2009
In the UK, Parliament had three of the leaders of its largest hedge funds on the hot seat. The members wanted to know whether they were making too much money off the bank difficulties in the country. Some of the...

Previous | Next

Related Law Bulletins

New Baptist Covenant Blog
Last week, I pointed to the New Baptist Convenant website, now onl...

The Mexico Trucker Blog
I've written before about the perceived problems with relaxed rest...