Found 38 article(s) for author 'Mark Roe'

Corporate governance and its political economy

Corporate governance and its political economy. Mark Roe, 2015, Paper. “To fully understand governance and authority in the large corporation, one must attend to politics. Because basic dimensions of corporate organization can affect the interests of voters, because powerful concentrated interest groups seek particular outcomes that deeply affect large corporations, because those deploying corporate and financial resources from within the corporation to buttress their own interests can affect policy outcomes, and because the structure of some democratic governments fits better with some corporate ownership structures than with others, politics can and does determine core structures of the large corporation…” Link

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The Fed’s Culture War

The Fed’s Culture War. Mark Roe, November 20, 2014, Opinion. “At a closed-door conference attended by senior bankers, regulators, and some academics, Federal Reserve Governor Daniel Tarullo and Federal Reserve Bank of New York President William Dudley used their bully pulpit to do something unexpected. Instead of focusing on how to bolster bank stability – channeling more capital toward the largest institutions, curbing their riskiest activities, and determining how to manage a failing bank without bailing it out – the officials discussed the bankers themselves…” Link

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Rolling Back the Repo Safe Harbors

Rolling Back the Repo Safe Harbors. Mark Roe, September 10, 2014, Opinion. “Ed Morrison, Judge Christopher Sontchi and I recently posted to SSRN our article recommending a major narrowing of the repo safe harbors, after presenting it at the Federal Reserve’s recent conference on Wholesale Funding Markets in which the Boston Fed president warned of the dangers in the repo market. Overall, we conclude that the Bankruptcy Code has aggressively and unwisely sought to regulate market liquidity and systemic risk, with the Code’s “safe harbors” from the normal bankruptcy machinery largely backfiring during the financial crisis…” Link

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The Examiners: Mark J. Roe on Municipal Distress

The Examiners: Mark J. Roe on Municipal Distress. Mark Roe, June 26, 2014, Opinion. “Detroit’s bankruptcy offers a cautionary tale for responsible municipal officials on how, and how not to, manage their budget. The pressure from pension obligations was a big factor in the Detroit bankruptcy. The simple lesson focuses on how municipalities save up to pay pensions to their retired police, firefighters, and other municipal employees. The city sets aside funds for the future retirement payments and expects earnings from the investments to help pay the pensions…” Link Verified October 12, 2014

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The Examiners: Mark Roe on GM’s Liability

The Examiners: Mark Roe on GM’s Liability. Mark Roe, May 28, 2014, Opinion. “It’s up to the courts to decide whether old or new GM is liable for faulty ignition-switch claims. But what do you think? From a legal, practical or ethical point of view, should it be? Can GM run from its bad cars? GM’s faulty ignition switches killed people. As a matter of ethics and public relations, GM should stand behind its cars. But does bankruptcy law require it to do so? Technically, no. Bankruptcy law says that an “old GM” was sold to a “new GM” and the “new GM” excluded product liability from the debts it picked up in the sales agreement. But it’d…” Link verified August 21, 2014

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Bonded Bankers

Bonded Bankers. Mark Roe, May 16, 2014, Opinion. “Since the global financial crisis, regulators have worked hard to make the world’s big banks safer. The fundamental problem is well known: major banks have significant incentives to take on excessive risk. If their risky bets pay off, their stockholders benefit considerably, as do the banks’ CEOs and senior managers, who are heavily compensated in bank stock. If they do not pay off and the bank fails, the government will probably pick up the tab. This confluence of economic incentives to take on risk makes bank managers poor guardians of financial safety…” Link verified June 19, 2014

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Structural Corporate Degradation Due to Too-Big-To-Fail Finance

Structural Corporate Degradation Due to Too-Big-To-Fail Finance. Mark Roe, April 9, 2014, Paper. “Corporate governance incentives at too-big-to-fail financial firms deserve systematic examination. For industrial conglomerates that have grown too large to be efficient, internal and external corporate structural pressures push to resize the firm. External activists press the firm to restructure to raise its stock market value. Inside the firm, boards and managers see that the too-big firm can be more efficient and more profitable if restructured via spin-offs and sales…” Link verified June 19, 2014

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The Examiners: Mark Roe on the Outlook for Corporate Restructuring

The Examiners: Mark Roe on the Outlook for Corporate Restructuring. Mark Roe, March 27, 2014, Opinion. “Interest rates that remain near zero and debt maturities that have been pushed out to 2017 and 2018 have helped drive Chapter 11 filings to historic lows. Has this difficult environment put corporate restructuring on life support? With interest rates near to zero for several years, weak firms can refinance their way out of problems that otherwise would have forced a financial restructuring and a Chapter 11 filing. It’s all part of the extended bailout of the economy that the Fed has engineered since 2008…” Link verified June 19, 2014

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How to Use a Bank Tax to Make the Financial System Safer

How to Use a Bank Tax to Make the Financial System Safer. Mark Roe, March 25, 2014, Opinion. “A tax on the balance sheets of big banks—first proposed by US President Barack Obama in 2010 but later shelved—is back on the political agenda. Last month Dave Camp, Republican chairman of the House of Representatives Ways and Means Committee, put forward a proposal for tax reform that included a 0.035 per cent levy on bank assets more than $500bn. This would hit large institutions such as Bank of America, Citigroup and Goldman Sachs…” Link verified June 19, 2014

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