Bankruptcy Not Bailout A Special Chapter 14

by Scott, Kenneth E.; Taylor, John B.

• ISBN13: 9780817915148
• ISBN10: 0817915141
• Format: Hardcover
• Copyright: 2012-09-01
• Publisher: Hoover Institution Press

Summary

Fixing Dodd-Frank-a new proposal for bankruptcy law The events of the last several years on Wall Street make a compelling case for comprehensive, fundamental reform in the oversight of financial firms. In Bankruptcy Not Bailout, a group of expert contributors show why, if a new addition to the bankruptcy laws-Chapter 14-were implemented along with other genuine reforms, the changes could strengthen the US financial system and provide the impetus the US economy needs to thrive once again. The authors reveal the weaknesses in Dodd-Frank Title II, showing how the current law creates an elaborate, and potentially cumbersome, bureaucratic procedure for triggering seizure of a financial company-and tell why Chapter 14 could greatly improve that process, creating greater financial stability and reducing the likelihood of bailouts. They lay the groundwork for a return to a clearer, more rules-based oversight regime that relies more on real capital and true market forces and urge adoption of a Chapter 14 even were Dodd-Frank left untouched. CONTRIBUTORS: Andrew Crockett, Darrell Duffie, Thomas H. Jackson, William F. Kroener III, Kenneth E. Scott, David A. Skeel, Kimberly Anne Summe, John B. Taylor, Kevin M. Warsh

Author Biography

Kenneth E. Scott is a senior research fellow and the Ralph M. Parsons Professor of Law and Business Emeritus, Stanford University Law School. John B. Taylor is the George P. Shultz Senior Fellow in Economics at the Hoover Institution and the Mary and Robert Raymond Professor of Economics at Stanford University.

Table of Contents

Preface	p. ix
A New Bankruptcy Approach
A Guide to the Resolution of Failed Financial Institutions: Dodd-Frank Title II and Proposed Chapter 14	p. 3
Bankruptcy Code Chapter 14: A Proposal	p. 25
Lehman and "Orderly Liquidation"
Comment on Orderly Liquidation under Title II of Dodd-Frank and Chapter 14	p. 73
An Examination of Lehman Brothers' Derivatives Portfolio Postbankruptcy: Would Dodd-Frank Have Made a Difference?	p. 85
Liquidation and Reorganization
A Dialogue on the Costs and Benefits of Automatic Stays for Derivatives and Repurchase Agreements	p. 133
The Going-Concern Value of a Failed SIFI: Dodd-Frank and Chapter 14	p. 175
Dodd-Frank: Resolution or Expropriation?	p. 199
Postlogue
Regulatory Reform: A Practitioner's Perspective	p. 207
A Macroeconomic Perspective: "Dealing with Too Big to Fail"	p. 217
About the Authors	p. 227
About the Hoover Institution's Working Group on Economic Policy	p. 233
Index	p. 237
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