Showing 9 of 379 Publications in Financial Regulation & Corporate Governance

Mandated Emissions Disclosures: the Bad Exceeds the Good

Popular Media Investors, customers, and employees are increasingly interested in evaluating firms’ environmental impact. This is good news. We are all better off when companies are accountable . . .

Investors, customers, and employees are increasingly interested in evaluating firms’ environmental impact. This is good news. We are all better off when companies are accountable for their actions. Seizing on this trend, the SEC has a pending proposal to mandate disclosure of companies’ carbon emissions and Governor Newsom has committed to signing a bill that does the same in California. This is bad news. Mandatory disclosures will do more harm than good.

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Financial Regulation & Corporate Governance

The Case For Real Tax Justice

Popular Media In its latest State of Tax Justice (SOTJ 2023) report, Tax Justice Network (TJN) claims that over the next decade the world will “lose” $4.7 . . .

In its latest State of Tax Justice (SOTJ 2023) report, Tax Justice Network (TJN) claims that over the next decade the world will “lose” $4.7 trillion in taxes unless governments agree to sign a global agreement on taxes under the auspices of the United Nations.

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Financial Regulation & Corporate Governance

The Biden Administration’s Contradictory Disdain for ‘Junk Fees’

Popular Media The White House has declared war on so-called “junk fees,” i.e. add-on fees to transactions that increase complexity and decrease price transparency as opposed to rolling all . . .

The White House has declared war on so-called “junk fees,” i.e. add-on fees to transactions that increase complexity and decrease price transparency as opposed to rolling all relevant costs into one “all-in” price. Regulators such as the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission have followed with their own rules implementing that command.

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Financial Regulation & Corporate Governance

The Effect of VAT Withholding Requirements in Latin America

TOTM Innovations in payment systems are rapidly transforming the world economy. While Bitcoin, Ethereum, and other decentralized blockchain-based systems tend to garner much of the press . . .

Innovations in payment systems are rapidly transforming the world economy. While Bitcoin, Ethereum, and other decentralized blockchain-based systems tend to garner much of the press (good and bad), centralized peer-to-peer (P2P) payment systems are far more common. (Note that I use the term P2P here in its original sense to mean all peer-to-peer transactions, which includes transactions between any combination of individuals, businesses, and other entities, such as governments and unincorporated associations.) 

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Financial Regulation & Corporate Governance

Antitrust at the Agencies Roundup: The Cat’s Tuches of Summer Edition

TOTM I had thought we were in the dog days of summer, but the Farmer’s Almanac tells me that I was wrong about that. It turns out that . . .

I had thought we were in the dog days of summer, but the Farmer’s Almanac tells me that I was wrong about that. It turns out that the phrase refers to certain specific dates on the calendar, not just to the hot and steamy days that descend on the nation’s capital in . . . well, whenever they do (and not just before Labor Day, that’s for sure). The true dog days, it turns out, are July 3-Aug. 11, no matter the weather. So maybe this is just the cat’s tuches of summer, as if that makes it better.

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Data Security & Privacy

The FT Misunderstands the Economics of Credit-Card Markets

TOTM In a recent piece for the Financial Times, Brendan Greeley argues that the misnamed Credit Card Competition Act would reduce inflation. In it, Greeley recycles numerous myths about the nature . . .

In a recent piece for the Financial Times, Brendan Greeley argues that the misnamed Credit Card Competition Act would reduce inflation. In it, Greeley recycles numerous myths about the nature of credit-card markets that have long been rebutted by serious economic research. Both theory and ample evidence from the United States and other countries shows that attempting artificially to force down interchange fees is bad for consumers—especially those with lower incomes and those who revolve their balances. Moreover, these interventions simply redistribute the costs of operating the payment-card system; they do not eliminate them. As a result, they won’t reduce inflation, as Greeley imagines.

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Financial Regulation & Corporate Governance

Does ‘Open Finance’ Promote Competition or Facilitate Free Riding?

TOTM Financial technology, or so-called “fintech,” is disrupting the financial sector, and that’s a good thing. Fintech services are making finance more digital and more user-friendly. . . .

Financial technology, or so-called “fintech,” is disrupting the financial sector, and that’s a good thing. Fintech services are making finance more digital and more user-friendly. This, in turn, has led to reduced transactions costs and increased levels of competition, innovation, and financial inclusion.

Alas, the emergence of fintech has also been accompanied by a rising chorus of the usual “if it’s good, mandate it; if I don’t like it, forbid it” reasoning that has motivated so many prior waves of regulatory intervention. The resulting regulations may be well-intentioned, but they more often than not lead to unintended consequences.

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Financial Regulation & Corporate Governance

Mandatory Routing Rules Could Hurt Retailers and Credit Card Holders

Popular Media Sen. Richard Durbin (D-Ill.) recently introduced legislation to regulate how credit-card transactions are routed that, if passed, would hinder competition between credit-card issuers, reduce benefits . . .

Sen. Richard Durbin (D-Ill.) recently introduced legislation to regulate how credit-card transactions are routed that, if passed, would hinder competition between credit-card issuers, reduce benefits for consumers, and impede fraud detection and prevention.

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Financial Regulation & Corporate Governance

As Global Temperatures Set New Records, Policyholder Advocates Continue to Deny the Science

Popular Media We learned this week that July 4’s average global temperature of 62.92 degrees Fahrenheit was the world’s hottest day since at least 1979, when the . . .

We learned this week that July 4’s average global temperature of 62.92 degrees Fahrenheit was the world’s hottest day since at least 1979, when the U.S. National Centers for Environmental Prediction began keeping records, and potentially the hottest in about 125,000 years.

And yet, in a world in which even ExxonMobil concedes the reality of climate change and touts that it is “playing a leading role in the transition to a lower-emission future,” it appears that insurance “consumer advocates” constitute the group most steadfast in their refusal to come to grips with what adapting to a warmer planet inevitably entails.

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Financial Regulation & Corporate Governance