In spring 2023, the Federal Deposit Insurance Corporation (FDIC) resolved three of the four largest bank failures in U.S. history. When the FDIC resolves failed banks, this Note argues, it (unselfconsciously) allocates coordination rights—that is, the right to legally permitted economic coordination. Specifically, by reflexively merging failed banks into larger banks, the FDIC adopts antitrust law’s preference for hierarchical firm-based coordination....
Banking Law
Major banks in the United States and globally have begun to assert an active role in the transition to a low-carbon economy and the reduction of climate risk through private environmental and climate governance. This Essay situates these actions within historical and economic contexts: It explains how the legal foundations of banks’ sense of social purpose intersect with their economic incentives to finance major structural transitions in society....
Introduction A central lesson of the financial crisis of 2007–2008 was that firms behaving like banks should be regulated like banks. Nonbanks that perform the same economic function as banks—so-called “shadow banks”—create the same risks and demand the same regulatory response as depository institutions with bank charters. The principal legislative reform passed in the wake […]