Too Big to Fail (TBTF)

Regulation of Financial Politics


I have a multi-book review essay on the financial crisis that is now out in the Harvard Law Review. Sadly, Timothy Geithner went to print to late for me to include his book. James Kwak has written a nice response to my essay here.   


Faith-Based Markets


Paul Krugman has a column today about the blind, fundamentalist faith in efficient markets.  This is a phenomenon that Stephen Lubben and I have been discussing recently (did Krugman just preempt our paper idea?), as we've both encountered it in the financial regulatory policy debate: 


DIP Loans and the SIFI Problem


Word on the street is that the company formerly known as TXU – now known as Energy Future Holdings – is lining up the biggest private DIP loan ever. About $9 billion.


Everything You Wanted to Know about CLOs, But Were Afraid to Ask


Well, not exactly. But for anyone who is interested, here is my written Congressional testimony for a House Financial Services Committee, Subcommittee on Capital Markets and GSEs hearing on "The Dodd-Frank Act's Impact on Asset-Backed Securities".


The Basic Problem with "Chapter 14"


There has been a big push, from several different directions, to develop a more "free market" – as compared with Dodd-Frank's OLA – approach to financial institution insolvency, the Hoover Institute's "chapter 14" proposal being the most famous of these "pushes."

The problem is in the funding. Chapter 11 depends on private DIP funding, but even the largest DIP loans are much smaller than the liquidity needs of a SIFI.


The Senate, Chapter 14, and a General Lack of Seriousness


Word on the street is that a proposal to add a chapter to the Bankruptcy Code to deal with SIFIs will be introduced this morning in the Senate. 


What's a Bailout?


Some thoughts over at Dealbook.


Her Majesty, the Vulture Investor


So this morning's FT tells us that Royal Bank of Scotland is in hot water for allegedly playing hardball with its borrowers, in the hopes of acquiring some of their assets on the cheap. That is RBS has adopted something of a "loan to own" strategy.


Securitization, Foreclosure, and the Uncertainty of Mortgage Title


I've got a new article out in the Duke Law Journal entitled The Paper Chase:  Securitization, Foreclosure, and the Uncertainty of Mortgage Title.  The article is about the confusion securitization has caused in foreclosure cases because of the shift in legal methods for mortgage transfer and title that accompanied securitization.