Found 40 article(s) for author 'Mark Roe'

The Imaginary Problem of Short-Term Thinking

The Imaginary Problem of Short-Term Thinking. Mark Roe, August 17, 2015, Opinion. “Corporate “short-termism” may not be as interesting as Donald Trump’s latest gaffe, but it’s becoming an issue in the 2016 U.S. presidential race. Corporations, the idea goes, are being run too much with an eye toward quarterly earnings instead of the long-term good of their businesses, their employees and the economy. Investors are to blame, and something needs to be done. Hillary Clinton has proposed making changes to U.S. capital-gains taxes and holding periods to encourage long-term investments…Link

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A Smarter Way to Tax Big Banks

A Smarter Way to Tax Big Banks. Mark Roe, February 1, 2015, Opinion. “President Obama has reanimated the idea of taxing the debt of big banks to help stabilize the banking industry and prevent future financial crises. The administration argues that the new tax would discourage banks from taking on too much risk by making it ‘more costly for the biggest financial firms to finance their activities with excessive borrowing.’ The president’s bank tax is unlikely to gain traction in the new Congress, following the failure of similar proposals from the administration in 2010 and last year from former House Ways and Means Chairman Dave Camp…” Link

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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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