Too Big to Fail (TBTF)

Preliminary Thoughts

11/14/16

On the new reality. Over at Dealb%k.

[more]

How to think about banks

11/12/16

Banking is not an industry; banking is not the real economy. The big banks especially are economic and political behemoths that remain unpopular and poorly understood in the popular imagination.

[more]

What is the point of that?

09/21/16

Perhaps as a result of GM, I've been thinking about notice issues in connection with insolvency.

[more]

Regulatory Déjà vu All Over Again

08/04/16

A new CMBS issuance is set to test whether regulators will treat the 5% retained credit risk under Dodd-Frank as loans or bonds.  The difference matters because there are different capital charges for loans and bonds.  If regulators treat the retained credit risk as bonds (which matches the technical form of the retained interest), then the risk retention requirement will be much more onerous.

[more]

Thoughts on the GM Ignition Switch Opinion

07/15/16

The Second Circuit handed down its much-anticipated decision on the GM successor liability claims. Bottom line is that most, if not all, of the various claims against New GM are not barred by the Sale Order because of lack of procedural Due Process.  That said, there's a lot more in the ruling.  My thoughts below the break: 

[more]

The Bad CHOICE Act

07/11/16

I'm testifying before House Financial Services tomorrow regarding the "CHOICE Act," the Republican Dodd-Frank alternative.  My testimony is here.

[more]

Thoughts on MetLife

03/30/16

Over at Dealb%k.

[more]

Puerto Rico: The Multiple Issuer Problem

03/05/16

One problem complicating any resolution of Puerto Rico's financial distress is that there are a multiplicity of issuers. There are separate claims on separate issuers, and it won't work to resolve just some of them, as they are all ultimately drawing on the same set of economic resources.  While there are claims on different assets, they value of those assets derive from Puerto Rico's overall economic production.

[more]