Found 6 article(s) for author 'Bankruptcy'

Don’t Bank on Bankruptcy for Banks

Don’t Bank on Bankruptcy for Banks. Mark Roe, October 18, 2017, Opinion, “As a part of their efforts to roll back the 2010 Dodd-Frank Act, congressional Republicans have approved a measure that would have courts, rather than regulators, oversee megabank bankruptcies. It is now up to the Trump administration to decide if it wants to set the stage for a repeat of the Lehman Brothers collapse in 2008.Link

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What Corporate Bankruptcy Can Teach Us About Morality

What Corporate Bankruptcy Can Teach Us About Morality. Mihir Desai, June 27, 2017, Audio, “Does the world of finance and markets needs a good infusion of humanity? One book examines how how a wider reading of the humanities can help you understand finance and — at the same time — how finance can help you understand the human condition. It’s by economist and Harvard Business School Professor Mihir Desai.  He joined Marketplace Morning Report host David Brancaccio to discuss his latest book, “The Wisdom of Finance: Discovering Humanity in the World of Risk and Return.”Link


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The Ownership and Trading of Debt Claims in Chapter 11 Restructurings

The Ownership and Trading of Debt Claims in Chapter 11 Restructurings. Victoria Ivashina, June 5, 2015, Paper. “Using a novel data set that covers individual debt claims against 136 bankrupt US companies and includes information on a subset of claims transfers, we provide new empirical insight regarding how a firm’s debt ownership relates to bankruptcy outcomes. Firms with higher debt concentration at the start of the case are more likely to file prearranged bankruptcy plans, to move quickly through the restructuring process, and to emerge successfully as independent going concerns. Moreover, higher ownership concentration within a debt class is associated with higher recovery rates to that class. Trading of claims during bankruptcy concentrates ownership further, but this trading is not associated with subsequent improvements in bankruptcy outcomes and could, at the margin, increase the likelihood of liquidation.Link

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Forgive and Forget: Bankruptcy Reform in the Contest of For-Profit Colleges. David Deming, Claudia Goldin, Lawrence Katz, May 2015, Book Chapter. “Rosalyn Harris was a single mother determined to make life better for herself and her son. Unemployed and without a college degree, Harris believed enrolling in the two-year criminal justice program at the for-profit Everest College was the right step toward the opportunities that higher education would provide. Unfortunately for Harris, that was not the case. Despite Everest’s claims of a 75% job placement rate for students in the criminal justice program, she spent months unsuccessfully applying…” Link

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How the Chrysler Reorganization Differed from Prior Practice

How the Chrysler Reorganization Differed from Prior Practice. Mark Roe, September 4, 2013, Paper. “Chrysler, a failing auto manufacturer, was reorganized in a controversial chapter 11 in 2009. Financial creditors were paid a quarter of the amount owed them, while other creditors were paid more. The reorganization’s defenders asserted, among other things, that the proceeding and the sale structure was typical of prior practice. To see if this view fits the evidence, we examine all prior large section 363 sales for key financial ratios…” Link verified June 19, 2014

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Clearinghouse Overconfidence

Clearinghouse Overconfidence. Mark Roe, August 11, 2013, Paper. “Regulatory reaction to the 2008-2009 financial crisis focused on complex financial instruments that deepened the crisis. A consensus emerged that these risky financial instruments should move through safe, strong clearinghouses, which would be bulwarks against systemic risk, and that the destructive impact of the failures during the crisis of AIG, Lehman Brothers, and the Reserve Primary Fund could have been softened or eliminated were strong clearinghouses in place…” Link verified June 19, 2014

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