Finance & Banking / Economic Law

This section includes literature on stock markets and domestic investment law.
Literature on international economic and investment law, and literature on sovereign debt are listed in the International Law > International Economic Law section.

Acree, Christine M and Peter L Cockrell, ‘Mortgage Regulation Developments in the COVID- 19 Era’ (2021) 76(2) Business Lawyer 627–633
Jurisdiction: USA
Abstract: The Consumer Financial Protection Bureau (‘CFPB’) has been active during the past year issuing rules and other guidance applicable to the mortgage industry. This survey highlights many of these regulatory developments. In particular, this survey addresses three notices of proposed rulemaking (‘NPRM’): two proposed rules that would revise the Qualified Mortgage Rule (‘QM Rule’) and a proposed rule that would amend various provisions of Regulation Z to facilitate the transition away from the London Interbank Offered Rate (‘LIBOR’). The CFPB also issued guidance related to the Home Mortgage Disclosure Act of 1975 (‘HMDA’), the Truth in Lending Act–Real Estate Settlement Procedures Act Integrated Disclosure Rule (‘TRID Rule’), and the Equal Credit Opportunity Act (‘ECOA’) Valuations and Appraisals Rule.

Adegoke, Taiye, ‘Banks and Other Financial Institutions Act (Amendment) Bill 2020 (A Comprehensive Analysis of the BOFIA 2020)’ (SSRN Scholarly Paper ID 3670773, 7 August 2020)
Abstract: In July 2020, the Senate of the Federal Republic of Nigeria for the first time since 29 years passed a Bill to repeal the Banks and Other Financial Institutions Act (BOFIA) Cap B3 Laws of the Federation of Nigeria 2004 and re-enact the Banks and Other Financial Institutions Act (BOFIA) Cap B3 Laws of the Federation of Nigeria 2004 (Amendment) Bill, 2020. The Bill seeks to regulate banking and businesses of other financial institutions by prohibiting the carrying on of such businesses in Nigeria except under licence and by a company incorporated in Nigeria. This article examines section by section, the innovative provisions of the Bill and how they clearly improved on the old Act to meet the nuances of the current business world. It is hopeful that just as the new CAMA received the assent of the President of the Federal Republic of Nigeria, the new BOFIA scales through the House of Representatives and eventually gets the President’s assent as the new Act is poised to strengthen the legal framework for the regulation of banks and bring it in line with global best practices, and prevent distress especially during and after this turbulent period of COVID-19, so that the country can adequately prepare and deal with potential post COVID-19 challenges in the banking sector.

Ahmed, SheharYar, ‘Impact of COVID-19 on Performance of Pakistan Stock Exchange’ (SSRN Scholarly Paper No ID 3643316, 4 July 2020)
Abstract: The objective of this study is to determine the impact of COVID-19 on the performance of Pakistani Stock Market. This study uses the data of COVID-19 related positive cases, fatalities, recovers and the closing prices of PSX 100 index of the first half of 2020. The findings of the study suggest that only COVID-19 recoveries are influencing the performance of the index and the daily positive cases and fatalities are insignificantly related to the performance. Further studies can be performed by incorporating other variables such as economic growth, interest rate and inflation rate along with the COVID-19 related variables at a cross-country level.

Akrong, Kevin and Gail E Henderson, ‘COVID-19 and the Regulation of Alternative Financial Services’ 46(2) Queen’s Law Journal 357–371
Abstract: This article explores how the COVID-19 pandemic has exposed and exacerbated existing inequalities with respect to access to basic financial services in Canada. The authors examine changes made to the regulation of financial products in the wake of the pandemic in order to expose the need to ensure that these regulations protect the ability of all Canadians to meet their needs and financial obligations. Part IA compares the regulation of government cheques cashed at banks and alternative service providers. Part IB analyzes Ontario’s changes to the regulation of institutions providing payday loans and warns that the current regulatory scheme leaves a gap in the regulation of installment loans. Part II provides an overview of voluntary credit relief programs offered in response to the pandemic and discusses how taking advantage of these programs may impact a borrower’s credit score. Part III cautions that financial stress as a result of the pandemic may lead to those with poor or no credit history to turn to so called ‘credit repair loans’. The authors conclude by expressing their hope that the pandemic will generate the political will to work towards a regulatory system for financial produces that meets the needs of all Canadians.

Alon, Titan et al, ‘The Impact of COVID-19 on Gender Equality’ (National Bureau of Economic Research, NBER Working Paper No 26947, April 2020)
Abstract: The economic downturn caused by the current COVID-19 outbreak has substantial implications for gender equality, both during the downturn and the subsequent recovery. Compared to ‘regular’ recessions, which affect men’s employment more severely than women’s employment, the employment drop related to social distancing measures has a large impact on sectors with high female employment shares. In addition, closures of schools and daycare centers have massively increased child care needs, which has a particularly large impact on working mothers. The effects of the crisis on working mothers are likely to be persistent, due to high returns to experience in the labor market. Beyond the immediate crisis, there are opposing forces which may ultimately promote gender equality in the labor market. First, businesses are rapidly adopting flexible work arrangements, which are likely to persist. Second, there are also many fathers who now have to take primary responsibility for child care, which may erode social norms that currently lead to a lopsided distribution of the division of labor in house work and child care.

Aminov, Mirobbos, ‘The Legal Framework Of Public-Private Partnership And The Economic Function Of The State In The Context Of The COVID-19 Pandemic: Example Of Uzbekistan’ (2020) 7(3) European Journal of Molecular & Clinical Medicine 3930–3934
Abstract: The concept of state function is one of the most important categories in the science of the theory of state and law. Because the study of issues related to the functions of the state serves to better understand its meaning, its role in society and its social function.This article is devoted to some issues of the role and importance of public-private partnership in the implementation of the economic function of the state.

Anggita, Wenni, Nanang Wahyudin and Wirazilmustaan, ‘Covid 33: Perceptions and Expectations of Council Members on Presidential Regulation No. 33 of 2020’ (2021) 3(2) Asian Journal of Law and Governance 34–39
Abstract: The uncomfortable news for government officials, members of the DPRD, as well as other civil servants in the midst of the corona pandemic (covid-19) with the issuance of Presidential Regulation Number 33 of 2020 concerning Regional Unit Price Standards which they call ‘Covid 33’. This is related to cutting some line items which were cut quite a lot by up to 75%. This Presidential Regulation is effective starting January 1, 2021 since President Joko Widodo issued Presidential Regulation Number 33/2020 concerning Regional Unit Price Standards in February 2020. This study aims to find out what the opinions of the members of the regional people’s representative council, especially in the Bangka Belitung Islands regarding the implementation of Presidential Regulation 33 of 2020. The sample of this study is 50 council members spread across 2 districts in Belitung using descriptive qualitative approach. Researchers distributed questionnaires and also conducted interviews with respondents to see their perceptions and how their expectations and input were regarding this Presidential Regulation 33/2020. The results of this study indicate that most respondents do not reject the implementation of Presidential Regulation 33/2020. However, revisions must be made in several parts. This is related to an increase in social expenditure as an increase in the economic cost of the community from council members. There is separation between government employees and board members in the implementation of Presidential Regulation 33/2020 because of the differences in the interests of their existence. The implementation of Presidential Regulation 33/2020 should also be adjusted to the capabilities of each region so that it does not generalize the capabilities of the regions. This is contrary to the welfare theory adopted by society where every community is no exception to the members of the council.

Arner, Douglas W et al, ‘After Libra, Digital Yuan and COVID-19: Central Bank Digital Currencies and the New World of Money and Payment Systems’ (University of Hong Kong, Faculty of Law Research Paper No 2020/036, 2020)
Abstract: Technology, money and payment systems have been interlinked from the earliest days of human civilization. But of late technology has reshaped money and payment systems to an extent and speed never before seen. Milestones include the establishment of M-Pesa in Kenya in 2007 (creating mobile money systems), Bitcoin in 2009 (triggering in time the explosive growth in distributed ledger technology and blockchain), the announcement of Libra in 2019 (triggering a fundamental rethinking of the potential impact of technology on global monetary affairs), and the announcement of China’s central bank digital currency – the Digital Currency / Electronic Payment (DCEP) referred herein to as Digital Yuan (marking the first launch by a major economy of a sovereign digital currency). The COVID-19 pandemic and crisis of 2020 has spurred electronic payments in ways never before seen. In this paper, we ask the question: In the context of the crisis and beyond, what role can technology play in improving the effectiveness of money and payment systems around the world?This paper analyses the impact of distributed ledger technologies and blockchain on monetary and payment systems. It particularly considers the policy issues and choices associated with cryptocurrencies, stablecoins and sovereign (central bank) digital currencies. We examine how the catalysts reshaping monetary and payment systems around the world – Bitcoin, Libra, China’s DCEP, COVID-19 – challenge regulators and give rise to different levels of disruption. While the thousands of Bitcoin progenies were able to be ignored, safely, by regulators, Facebook’s proposed Libra, a global stablecoin, brought an immediate and potent response from regulators globally. This proposal by the private sector to move into the traditional preserve of sovereigns – the minting of currency – was always likely to provoke a roll-out of sovereign digital currencies by central banks. China has moved first, among major economies, with its Digital Yuan – the initiative that may well trigger a chain reaction of central bank digital currency issuance across the globe. In contrast, in the COVID-19 crisis, we argue most central banks should focus not on rolling out novel new forms of blockchain-based money but rather on transforming their payment systems: this is where the real benefits will lie both in the crisis and beyond. Looking forward, neither the extreme private nor public model is likely to prevail. Rather, we expect the reshaping of domestic money and payment systems to involve public central banks cooperating with (new and old) private entities which together will provide the potential to build better monetary and payment systems at the domestic and international level. Under this model, for the first time in history, technology will enable the merger of the monetary and payment systems.

Arner, Douglas W et al, ‘Digital Finance & The COVID-19 Crisis’ (University of Hong Kong, Faculty of Law Research Paper No 2020/017, 16 April 2020)
Abstract: The COVID-19 coronavirus crisis is putting unprecedented strain on markets, governments, businesses and individuals. The human, economic and financial costs are increasing dramatically, with potentially huge impact on developing countries and emerging market countries in addition to developed countries and regions. Across all of these, the greatest toll is likely to fall on those least able to bear it, with terrible damage to human development across the world.This paper examines how the digital financial infrastructure that emerged in the wake of the 2008 Global Financial Crisis is being, and can be, leveraged to overcome the immediate challenges presented by the pandemic and manage the impending economic fallout. The origins of the 2008 crisis and current crisis are different: 2008 was a financial crisis spilling over into the real economy. 2020 is a health and geopolitical crisis, spilling over simultaneously into financial markets and the real economy. As such, this crisis requires different approaches.This study operates at two levels: • At the macro level, it seeks to identify areas of systemic risk and strategies and frameworks to support policy coordination and action; and • At the micro level is seeks to illustrate how digital finance tools may be able to assist addressing some of the challenges emerging.Strategies to address financial aspects of the crisis in order to reduce the economic and human impact include: (1) ensuring sufficient liquidity to support market functioning and underpin demand; (2) intensifying information exchange on health and financial / economic matters in an effort to ensure accurate information despite forces that work against this; (3) heavy, temporary financial support for individuals; for small, medium and large enterprises to avoid loss of infrastructure and preserve the capacity for an orchestrated response (by avoiding mass insolvency); and potentially, in some cases, for governments; (4) leveraging digital finance and payments to reduce human-to-human contact, while organizing support for the elderly and other digitally excluded people who would normally use physical channels; (5) establishing a well-funded coordination body as a crisis management tool to ensure information exchange; (6) directing financial resources to medical infrastructure; and (7) directing financial resources to digital infrastructure and connectivity to support all other aspects of society and the economy, including, especially, the online facilitation of education and widespread work-from-home policies.At the same time, the digitization of financial services in the last decade offers alternative and more direct means by which it may be possible to stimulate the real economy, which will be critical in mitigating the economic impacts and maintaining social cohesion. Tools that support financial inclusion, sustainable development and achievement of the UN Sustainable Development Goals can also provide useful tools during a crisis. These short term strategies are expected to generate deeper structural changes long-term. For now, one cannot predict the new world that will emerge post crisis, but this issue will require focussed attention going forward as the immediate situation eventually comes under control and recovery begins.

Arner, Douglas W, Emilios Avgouleas and Evan Gibson, ‘Financial Stability, Resolution of Systemic Banking Crises and COVID-19: Toward an Appropriate Role for Public Support and Bailouts’ (University of Hong Kong, Faculty of Law Research Paper No 2020/044, 1 August 2020)
Abstract: A wide range of approaches has been applied to address banking and other financial crises. The nature of the approach depends on the nature of the crisis, its origins, evolution and context. Systemic banking crises are among the most common and costly to address. The experiences of the three major international financial crises of the past 25 years – the Asian Financial Crisis, the Global Financial Crisis, and the European Debt Crisis – offer critical lessons regarding the most effective approaches in tackling bank solvency during a systemic crisis. One of the most common and also effective methods has been the transfer of non-performing loans (NPLs) to an Asset Management Company (AMC) that performs workouts or liquidates stressed loan portfolios at a more opportune time to amortize losses. In most cases the use of AMCs has delivered positive results for the taxpayer. Contemporary consensus as regards tackling bank solvency during a systemic financial crisis focuses heavily on prevention of government bailouts in order to protect state finances and curb moral hazard. However, an overly dogmatic focus on preventing public financial support in the context of a systemic bank solvency crisis may place insurmountable obstacles to the use of state-backed AMCs and other forms of resolution of NPLs and bank recapitalization. This paper provides a new perspective on the common belief that public support in the context of systemic bank insolvency – i.e. bank bailouts – is an inefficient use of public funds or conducive to moral hazard. Our study finds that state-backed AMCs can be effective in recapitalizing banking systems, depending on the modus operandi of the restructuring, funding and the conditions attached to the fiscal backstop. With respect to systemic banking crises or those caused by exogenous factors, such as the unprecedented disruption of economic activity due the COVID-19 pandemic, preservation of financial stability and not containment of moral hazard should be policy-makers’ predominant goal. Thus, we suggest that a combination of balance sheet restructuring and the use of AMCs to manage NPLs is the optimal approach.

Avgouleas, Emilios and Aggelos Kiayias, ‘The Architecture of Decentralised Finance Platforms: A New Open Finance Paradigm’ (Edinburgh School of Law Research Paper No 2020/16, 3 August 2020)
Abstract: The evolving merger of payments technology with technology underpinning investment markets’ infrastructure can have a great impact on the mode of supply of financial services, notwithstanding technical, legal and regulatory restrictions. One-stop-shop multi-purpose and multi-asset platforms will be a key characteristic of post-COVID-19 finance bringing a radical transformation of the marketplace. Anticipated benefits range from a drastic reduction of intermediary rents and transaction costs to repatriation of investor control and alteration of today’s narrow asset allocation strategies. To facilitate this transformation, we offer a model of decentralised finance that goes far beyond so-called ‘autonomous’ finance. As the technical and regulatory challenges of increasing automation and integration in the supply of investment services will be considerable, a proactive approach is required to resolve these problems. Integrated decentralised platforms are the most promising route to: (a) counter the competitive threat of BigTech, (b) reform investment industry’s narrow asset allocation practices whose fragility has been badly exposed by the pandemic, and, (c) spread equally the dividend of financial development.

de Bandt, Olivier, Celine Lecarpentier and Cyril Pouvelle, ‘Determinants of Banks’ Liquidity: A French Perspective on Interactions between Market and Regulatory Requirements’ (Banque de France Working Paper No 782, 2020)
Abstract: The paper investigates the impact of solvency and liquidity regulation on banks’ balance sheet structure. The Covid-19 pandemics shows that periods of sharp increase in risk aversion often result in liquidity strains for banks due to the volatility of long-term funding markets.According to a simple portfolio allocation model banks’ liquidity increases when the regulatory constraint is binding. We provide evidence, using the ‘liquidity coefficient’ implemented in France ahead of Basel III’s Liquidity Coverage Ratio, of a positive effect of the solvency ratio on the liquidity coefficient. We also show that in times of crisis, measured by financial variables, French banks actually decreased the liquidity coefficient, with the transmission channel materialising mainly on the liability side.

Barr, Michael S, Howell E Jackson and Margaret E Tahyar, ‘The Financial Response to the COVID-19 Pandemic’ (SSRN Scholarly Paper ID 3666461, 1 August 2020)
Abstract: We are living through extraordinary times as the United States has struggled to deal with the global COVID-19 pandemic, and as of the writing of this paper, we remain in the midst of the crisis. We still do not know what the full economic and financial consequences of the pandemic will be, but they are likely to persist for an extended period, as many people are unlikely to return to normal work or consumption patterns soon, and household and business defaults are likely to increase and negatively affect the financial sector. This paper, written to assist faculty in teaching about the pandemic, focuses on key actions taken by the financial regulators in response to the crisis so far, giving a detailed summary of the actions taken by the Federal Reserve, the Treasury Department, and Congress. We discuss the Federal Reserve’s monetary policy actions, emergency lending facilities, and supervisory forbearance by the federal banking agencies. We also provide a summary of financial provisions of the CARES Act, including an analysis of the Paycheck Protection Program. We explore a number of central themes already emerging, including the blurry line between monetary policy and fiscal policy. We also highlight the fact that unlike the Financial Crisis of 2008, today’s economic crisis is caused by the failure to take sufficient public health actions to contain a global pandemic, not poor policy and risk choices in the financial markets; the fact that the crisis is caused by a public health failure poses unique problems for economic and financial policymakers in crafting responses.

Baxter, Alison, Mark Craggs and Kenneth Gray, ‘Moratoria Laws Globally and the COVID-19 Pandemic’ (2020) 35(8) Butterworths Journal of International Banking & Financial Law 536–539
Abstract: Compares the moratorium for businesses in difficulty under the Corporate Insolvency and Governance Act 2020 with US Chapter 11 proceedings, and administration in the UK. Considers EU guidance on the capital adequacy implications.

Bell, Gavin A and W Stacy Miller II, ‘Fraud in the Pandemic: How COVID-19 Affects Qui Tam Whistleblowers and The False Claims Act’ (2021) 43(3) Campbell Law Review 273–307
Abstract: The False Claims Act (FCA) and its qui tam provision allow whistleblowers who uncover fraud against the government to bring a civil action and assist in the recovery of assets. This little-known law has become the government’s most powerful tool to combat fraud and is responsible for the recovery of more than $59 billion since its amendment in 1986. As with most things, the COVID-19 pandemic has impacted the FCA and its qui tam practice. As of April 1, 2021, the federal government allocated a total of $3.0 trillion to address the pandemic. The public must rely on the FCA and its whistleblowers now more than ever to protect this public investment.

‘Beware of Coronavirus Scams’ (2020) 113(5) Servamus Community-based Safety and Security Magazine 25–25
Abstract: SABRIC, the South African Banking Risk Information Centre, warns bank clients that cybercriminals are exploiting the spread of COVID-19 for their own gain using the ‘Coronamania’ panic to spread coronavirus scams. Coronavirus scams exploit peoples concerns for their health and safety and pressure them into being tricked using social engineering. Social engineering is manipulative and exploits human vulnerability because criminals know that the weakest link in the information security chain is the human being.

Billio, Monica and Simone Varotto, A New World Post COVID-19: Lessons for Business, the Finance Industry and Policy Makers (Fondazione Università Ca’ Foscari, 2020) OPEN ACCESS
Abstract: Pandemics are disruptive events that have profound consequences for society and the economy. This volume aims to present an analysis of the economic impact of COVID-19 and its likely consequences for our future. This is achieved by drawing from the expertise of authors who specialise in a wide range of fields including fiscal and monetary policy, banking, financial markets, pensions and insurance, artificial intelligence and big data, climate change, labour market, travel, tourism and politics, among others. This book presents its chapters under the following thematic headings:
Part 1. Historical Perspective
Part 2. Fiscal and Monetary Policy
Part 3. Banking, Risk and Regulation
Part 4. Financial Markets
Part 5. Commodities and Real Estate Markets
Part 6. Business Performance, Funding and Growth
Part 7. Pensions and Insurance
Part 8. Climate Change
Part 9. Labour Market
Part 10. Ai and Big Data
Part 11. Travel, Tourism and Entertainment

Bischoff, Charles and Tom Maclean, ‘Approaches of Lenders and Borrowers in the Speciality Finance Space to the COVID-19 Pandemic’ 35(7) Butterworths Journal of International Banking & Financial Law 492–493
Abstract: Reviews the measures introduced by borrowers and lenders in the speciality finance sector in response to the coronavirus pandemic. Discusses the scrutiny of facility documentation, the position where borrowers seek accreditation under government schemes to make loans available, the questions for borrowers before breach of facility agreements occur, the questions arising after breach, and how mutual waivers may be documented.

Bitar, Mohammad and Amine Tarazi, ‘A Note on Regulatory Responses to Covid-19 Pandemic: Balancing Banks’ Solvency and Contribution to Recovery’ (SSRN Scholarly Paper No ID 3631131, Social Science Research Network, 19 June 2020)
Abstract: We see spikes in unemployment rates and turbulence in the securities markets during the COVID-19 pandemic. Governments are responding with aggressive monetary expansions and large-scale economic relief plans. We discuss the implications on banks and the economy of prudential regulatory intervention to soften the treatment of non-performing loans and ease bank capital buffers. We apply these easing measures on a sample of Globally Systemically Important Banks (G-SIBs) and show that these banks can play a constructive role in sustaining economic growth during the COVID-19 pandemic. However, softening the treatment of non-performing loans along with easing capital buffers should not undermine banks’ solvency in the recovery period. Banks should maintain usable buffer in the medium-term horizon to absorb future losses, as the effect of COVID-19 on the economy might take time to fully materialise.

Bostoen, Friso et al, ‘Corona and EU Economic Law: Competition and Free Movement in Times of Crisis’ (2020) 4(2) European Competition and Regulatory Law Review 72–95
Abstract: The outbreak of the coronavirus—and the responses of governments and businesses to combat the medical and economic crisis it entails—raise a number of urgent questions, many of which concern European economic law, i.e. the competition rules and free movement provisions. Can businesses cooperate to guarantee the supply of essential items or a vaccine notwithstanding the cartel prohibition of Article 101 TFEU? Is the excessive price doctrine of Article 102 TFEU a match for the price increases caused by hoarding behaviour? Can competition authorities continue to assess mergers, and might they even become more sympathetic to certain arguments such as the failing firm defence and industrial policy considerations? Under which conditions are Member States allowed to grant aid to undertakings that face economic difficulties due to the crisis? Can Member States prohibit the export of medical supplies to other Member States, and can they close their borders for European citizens? And how much freedom do public procurement rules leave governments to quickly conclude contracts for essential supplies? This article addresses these pressing questions in a comprehensive manner. It situates the numerous guidance documents adopted by the European Commission within the broader framework of EU economic law and then evaluates the compatibility of the public and private corona-related measures with that framework. The aim is to offer a legal guide for governments and businesses combatting the corona crisis.

Buckley, Ross P, Emilios Avgouleas and Douglas W Arner, ‘Three Decades of International Financial Crises: What Have We Learned and What Still Needs to Be Done?’ (University of Hong Kong Faculty of Law Research Paper No 2020/037, 2020)
Abstract: Fragility that periodically erupts into a full-blown financial crisis appears to be an integral feature of market-based financial systems in spite of the emergence of sophisticated risk management tools and regulatory systems. If anything, the increased frequency of modern crises underscores how difficult it is to diversify away systemic risk and that perceptions of perfectly stable financial systems are normally flawed, even if the source of the next crisis remains well concealed to the expert eye.Although it is impossible to forecast a financial crisis with a high degree of accuracy and certainty, earlier crises always leave lessons useful in preparation for future crises, from whatever source. It is thus clear that the best way to deal with preventing and addressing major financial crises is to build the defenses of the financial system, including effective institutions, while at the same time trying to identify potential sources of crisis. We should take every opportunity to learn and work to build stronger and more effective financial systems. This paper compares and contrasts the three major crises of the past 3 decades, both to distill the lessons to be learned from them and to identify what more can be done to strengthen our financial systems. As the world addresses the financial impact of the COVID-19 pandemic, the centrality of these lessons is clear.

Busch, Danny, ‘Is the European Union Going to Help Us Overcome the COVID-19 Crisis?’ (2020) 15(3) Capital Markets Law Journal 347–366
Key points: The author discusses the most noteworthy measures taken or yet to be taken by the European Union (EU) to combat the coronavirus crisis. The measures fall into four categories: (i) flexible application of EU rules that could hinder Member States in their strenuous efforts to save their national economies; (ii) a financial support package put in place by the EU itself; (iii) monetary action by the ECB; and (iv) action by European financial regulators, including the ECB (albeit in its capacity of banking regulator rather than monetary authority). This is followed by some comments on the impact of the coronavirus crisis on (i) the intended completion of the European Banking Union, (ii) the plans for a European Capital Markets Union, (iii) Brexit and (iv) the EU climate plans. The author concludes that it is clear that the crisis has once again laid bare the divisions between north and south in Europe. These divisions are particularly apparent in relation to the issue of financing the European recovery fund and the power struggle that has now flared up between the German Constitutional Court on the one hand and the CJEU and the ECB on the other. Hard times lie ahead for the EU.

Chan, Elaine and Jenny Tsin, ‘The Coronavirus COVID-19 Pandemic: Testing the Adequacy of a Financial Institution’s Pandemic Measures’ (2020) 35(6) Butterworths Journal of International Banking & Financial Law 400–402
Abstract: Discusses the Singapore regulatory requirement that banks should have business continuity plans ready for all kinds of disruption, including pandemics. Examines banks’ obligations in the coronavirus pandemic, especially for workplace health and safety, and procedures for employment cost-cutting.

Chiu, Iris, Andreas Kokkinis and Andrea Miglionico, ‘Relief and Rescue: Suspensions and Elasticity in Financial Regulation, and Lessons from the UK’s Management of the COVID-19 Pandemic Crisis’ (2021) 64(1) Washington University Journal of Law & Policy 63–112
Abstract: This Article analyzes the UK’s approach to handling the economic impact of COVID-19, offering insight for developed financial jurisdictions embarking on regulatory suspensions. When existing law no longer meets overarching policy goals such as financial stability, regulators resort to the theorization of legal elasticity. This Article situates regulatory suspension within this theory analyzing the tensions, hazards, and accompanying decision-making frameworks. The authors make three proposals for deployment of legal elasticity by regulators: (1) evaluate institutional stability; (2) engage in relational paradigms with relevant agencies, entities, and stakeholders; and (3) establish ex ante frameworks for crisis management and the potential use of legal elasticity.

Christiani, Theresia Anita, ‘Proposed Changes to the Bank Indonesia Law as a Solution to the Impact of the COVID-19 Spread on Banking in Indonesia’ (2021) 16(2) Banks and Bank Systems 127–136
Abstract: Every amendment to the Bank Indonesia Law is caused by a situation that requires changes to the Law regulating the Central Bank in Indonesia as a solution. The spread of COVID-19 in Indonesia has also led to proposals to amend the Bank Indonesia Law. The purpose of the study is to find answers to the relevance of the proposed Amendment to Bank Indonesia Law to address the spread of COVID-19 to banking institutions in Indonesia. This type of research methods is normative legal research. In normative legal analysis, secondary data are used, consisting of primary and secondary legal materials. They are obtained from applicable regulations in Indonesia. The study results show that every change is always based on events that prove the weak implementation of existing rules with a regulatory and conceptual approach. The spread of COVID-19 is a situation, that has no practical basis and requires amendments to the Bank Indonesia Law as an alternative solution. Also, the proposed amendments are not yet relevant to address the impact of COVID-19 on banks because they have not yet realized and achieved the legal goals of providing benefits to the community.

‘Commission Adopts Capital Markets Recovery Package’ (2020) 395 EU Focus 11–12
Abstract: Reports on the European Commission’s adoption of a Capital Markets Recovery Package, as part of its coronavirus recovery strategy, which contains targeted adjustments to key EU legislation on capital markets to help them to support European businesses recovering from the crisis.

Conti-Brown, Peter, Yair Listokin and Nicholas R Parrillo, ‘Towards an Administrative Law of Central Banking’ (2021) 38(1) Yale Journal on Regulation 1–89
Abstract: A world in turmoil caused by COVID-19 has revealed again what has long been true: the Federal Reserve is arguably the most powerful administrative agency in government, but neither administrative-law scholars nor the Fed itself treat it that way. In this Article, we present the first effort to map the contours of what administrative law should mean for the Fed, with particular attention to the processes the Fed should follow in determining and announcing legal interpretations and major policy changes. First, we synthesize literature from administrative law and social science to show the advantages that an agency like the Fed can glean from greater openness and transparency in its interpretations of law and in its long-term policymaking processes. These advantages fall into two categories: (1) sending more credible signals of future action and thereby shaping the behavior of regulated parties and other constituents, and (2) increasing the diversity of incoming information on which to base decisions, thereby improving their factual and predictive accuracy. Second, we apply this framework to two key areas—monetary policy and emergency lending—to show how the Fed can improve its policy signaling and input diversity in the areas of its authority that are most expansive. The result is a positive account of what the Fed already does as an administrative agency and a normative account of what it should do in order to preserve necessary policy flexibility without sacrificing the public demands for policy clarity and rigor.

Corke, Clare, ‘Coronavirus and Financing Arrangements: Practice Tips for Avoiding Turmoil’ (2020) 36(2) Australian Banking and Finance Law Bulletin 27–29
Abstract: In light of the impacts of Novel Coronavirus disease, renamed COVID-19, nation states and businesses are reacting by implementing robust mitigation measures. We are already seeing impacts of COVID-19 (and the mitigation measures) on domestic and international trade and commerce, capital flows, tourism and migration. But how does this relate specifically to borrowers and lenders and how will COVID-19 impact on their financing arrangements?

Crabb, John, ‘The Anti-Social Social Bond Club’ [2020] (Summer) International Financial Law Review 6–7
Abstract: Surveys banking lawyers about whether COVID-19 allocated social bonds could be used to finance not only the development of vaccines but also social projects unrelated to the coronavirus pandemic.

Daniele, Gianmarco et al, ‘Wind of Change? Experimental Survey Evidence on the Covid-19 Shock and Socio-Political Attitudes in Europe’ (Working Paper No 2020–10, Max Planck Institute for Tax Law and Public Finance, 11 August 2020)
Abstract: This paper investigates whether the COVID-19 crisis has affected the way we vote and think about politics, as well as our broader attitudes and underlying value systems. We fielded large online survey experiments in Italy, Spain, Germany and the Netherlands, well into the first wave of the epidemic (May-June), and included outcome questions on trust, voting intentions, policies & taxation, and identity & values. With a randomised survey flow we vary whether respondents are given COVID-19 priming questions first, before answering the outcome questions. With this treatment design we can also disentangle the health and economic effects of the crisis, as well as a potential ‘rally around the flag’ component. We find that the crisis has brought about severe drops in interpersonal and institutional trust, as well as lower support for the EU and social welfare spending financed by taxes. This is largely due to economic anxiety rather than health concerns. A rallying effect around (scientific) expertise combined with populist policies losing ground forms the other side of this coin, and hints at a rising demand for competent leadership.

Davis, Glen, ‘Adopting the Contracts of Furloughed Employees: The Decisions in Carluccio’s and Debenhams’ (2020) 35(7) Butterworths Journal of International Banking & Financial Law 482–488
Abstract: Reviews Re Carluccio’s Ltd (In Administration) (Ch D) and Re Debenhams Retail Ltd (In Administration) (CA) on whether employees’ contracts were adopted, for the purpose of priority in the administration, by their variation to take advantage of the Coronavirus Job Retention Scheme, or by administrators making an application under the scheme or making payments to a furloughed employee, noting the relevance to priority of the variations agreed.

Demirguc-Kunt, Asli, Michael Lokshin and Ivan Torre, ‘The Sooner, the Better: The Early Economic Impact of Non-Pharmaceutical Interventions During the Covid-19 Pandemic’ (World Bank Policy Research Working Paper No 9257 No 9257, 26 May 2020)
Abstract: The size of the economic shocks triggered by the COVID-19 pandemic and the effects of the associated non-pharmaceutical interventions have not been fully assessed, because the official economic indicators have not been published. This paper provides estimates of the economic impacts of the non-pharmaceutical interventions implemented by countries in Europe and Central Asia over the initial stages of the COVID-19 pandemic. The analysis relies on high-frequency proxies, such as daily electricity consumption, nitrogen dioxide emission, and mobility records, to trace the economic disruptions caused by the pandemic, and calibrates these measures to estimate magnitude of the economic impact. The results suggest that the non-pharmaceutical interventions led to about a decline of about 10 percent in economic activity across the region. On average, countries that implemented non-pharmaceutical interventions in the early stages of the pandemic appear to have better short-term economic outcomes and lower cumulative mortality, compared with countries that imposed non-pharmaceutical interventions during the later stages of the pandemic. In part, this is because the interventions have been less stringent. Moreover, there is evidence that COVID-19 mortality at the peak of the local outbreak has been lower in countries that acted earlier. In this sense, the results suggest that the sooner non-pharmaceutical interventions are implemented, the better are the economic and health outcomes.

Dermine, Paul and Menelaos Markakis, ‘EU Economic Governance and the COVID-19 Crisis: Between Path-Dependency and Paradigmatic Shift’ (2020) 6(4) International Journal of Public Law and Policy 326–345
pre-published version of article available on SSRN
Abstract: The COVID-19 pandemic and the dramatic recession that ensued, have precipitated new and ambitious economic and monetary policy initiatives at the European Union level. This article takes stock of the measures taken thus far and reflects on the impact of the ongoing crisis on the Eurozone’s political economy and its paradigms. It addresses the continued dominance of the European Central Bank; the emergence of a fiscal center in the Eurozone; and the role of the State in the economy more generally, as well as the place of Europe in the world economy. The article argues that the European response to the economic recession associated with the pandemic is marked both by continuity and path-dependency on the one hand, and potential paradigmatic shifts on the other hand.

‘Disease and Recovery in (COVID-Afflicted) Europe’ (2020) 57(3) Common Market Law Review 619–629
Abstract: Discusses how the EU will respond to the economic and political challenges as Member States recover after the coronavirus pandemic. Reports on public health co-operation initiatives, derogations from freedom of movement and the state aid rules, and the implications for international relations.

Enriques, Luca and Marco Pagano, ‘Emergency Measures for Equity Trading: The Case Against Short-Selling Bans and Stock Exchange Shutdowns’ (European Corporate Governance Institute, Law Working Paper No 513/2020, 11 May 2020)
Abstract: After the COVID-19 crisis struck, equity prices abruptly plunged across the world. The clear prospect of an almost unprecedented decrease in supply and demand, coupled with extreme uncertainty about the longer-term prospects for the economy worldwide, justified the price adjustments. Yet, in conditions of plummeting prices and high volatility, policymakers around the world felt under pressure ‘to do something’ to stop the downward trend in market prices. As was the case during the financial crises of 2008-09 and 2011-12, these pressures have quickly led to the adoption of market-wide short-selling bans. In addition, both in Europe and in the US, there have been calls for an even more drastic measure: a lasting ‘stock exchange holiday’. This chapter reviews the evidence on the effects of short-selling bans during the financial crisis and discusses the merits of stock exchange holidays and concludes that neither of these measures bring benefits to financial markets.

Estrada, Ruiz and Mario Arturo, ‘Can COVID-19 Generate a Massive Corruption in Developing Countries and Least Developed Countries?’ (SSRN Scholarly Paper No ID 3597367, 10 May 2020)
Abstract: The impact of COVID-19 on the generation of a massive corruption in developing countries (DC’s) and least developed countries (LDC’s) is obviously possible anytime and anywhere, but measuring such impact to get a sense of the intensity of its effects on the corruption expansion is subject to a great deal of uncertainty. As such, this paper primarily attempts to close this gap by introducing the massive corruption in times of pandemic crisis evaluation simulator (MCTPCE-Simulator), a new economic instrument that could be used to evaluate how COVID-19 crisis can generate a massive corruption. Based on five key indicators, the (MCTPCE—Simulator) considers and draws its assessment from different indicator available from our simulator. Hence, in this article, a simulation was used to illustrate the applicability of the simulator from where analyses provide a coherent evaluation how the COVID-19 can promote the country’s corruption in high and middle levels.

Findlay, Mark, ‘Pandemic Paradox and Polanyi: Financial Markets Rise, Economies Crash, and Regulators Toss a Coin’ (SMU Centre for AI & Data Governance Research Paper No 2020/09, 11 August 2020)
Abstract: In the pandemic, investors like all responsible citizens share an obligation to keep the community safe. This obligation extends to informed market decision-making which goes beyond self-interest. The current disconnect between financial markets and the economy is a story of two different realities – or perhaps one harsh reality and one expectant gamble. The disconnect cannot just be explained by the different purposes of economic and financial market analysis but rather by the information indicators on which these rely. To forewarn regulators concerned that these two worlds of global wealth generation and growth moving to polar opposite futures, this brief review has these aims:• To reflect on a legal model for financial markets, their regulation and its limitations so that law and finance may be understood as positively relational when considering market sustainability; and then• To suggest that the explanation for this dangerous disconnect can be found in Karl Polanyi’s understanding of fictitious commodities in self-regulating markets, dis-embedding from the social and his propositions for market correction through the double movement.Despite the neoliberal logic to the contrary (where financial markets are deemed only for maximising investor/shareholder profit) financial market regulation should prioritise market sustainability as part of pandemic control policy.

Foohey, Pamela, ‘Bursting the Auto Loan Bubble in the Wake of COVID-19’ (2021) 106(5) Iowa Law Review 2215–2239
Abstract: Before the COVID-19 pandemic, auto loans outstanding in the United States had soared to record highs. The boom in lending spanned new and used cars and traditional and subprime loans. With loan delinquencies also hitting new highs almost every quarter, predictions that the auto lending market could burst soon abounded. When the economy came to a grinding halt and unemployment skyrocketed in the wake of the pandemic, auto lenders knew they were facing a crisis. Throughout 2020, auto lenders granted more payment forbearances to consumers, while slashing interest rates on new loans. Auto manufacturers similarly made promises to buyers, such as the ability to return new cars for up to a year upon job loss. Combined with the CARES Act’s relief rebates and moratoria, the bottom did not fall out of the auto loan market. These measures, however, are temporary. The pandemic alone will not reduce people’s need for cars, but it will burst the auto loan bubble. The economic fallout will require interventions in the auto sale and loan markets, which presents a moment to transform America’s car economy. This symposium Essay details a range of financial and related measures that can be implemented in the near future to shift auto financing away from promoting economically unequal and environmentally unfriendly use and access to automobiles, and, more broadly, to shift the United States away from prioritizing automobiles as the primary means of personal transportation.

Foohey, Pamela, Dalié Jiménez and Christopher K Odinet, ‘The Debt Collection Pandemic’ (2020) 11 California Law Review 222–241
Abstract: As of May 2020, the United States’ reaction to the unique and alarming threat of COVID-19 has partially succeeded in slowing the virus’s spread. Saving people’s lives, however, came at a severe economic cost. Americans’ economic anxiety understandably spiked. In addition to worrying about meeting basic expenses, people’s anxieties about money necessarily included what might happen if they could not cover already outstanding debts. The nearly 70 million Americans with debts already in collection faced heightened anxiety about their inability to pay.The coronavirus pandemic is set to metastasize into a debt collection pandemic. The federal government can and should do something to put a halt to debt collection until people can get back to work and earn money to pay their debts. Yet it has done nothing to help people deal with their debts. Instead, states have tried to solve issues with debt collection in a myriad of patchwork and inconsistent ways. These efforts help some people and are worthwhile. But more efficient and comprehensive solutions exist. Because debt collection brought by the COVID-19 crisis will not dissipate anytime soon, even after the crisis ends, the need to implement comprehensive, longer-lasting solutions remains. These solutions largely fall on the shoulders of the federal government, though state attorney generals have the necessary power to help people effectively, provided they act in concert. If the government continues on its present course, a debt collection pandemic will follow the coronavirus pandemic.

Gallego, Jorge A, Mounu Prem and Juan F Vargas, ‘Corruption in the Times of Pandemia’ (SSRN Scholarly Paper No ID 3600572, 13 May 2020)
Abstract: The public health crisis caused by the COVID-19 pandemic, coupled with the subsequent economic emergency and social turmoil, has pushed governments to substantially and swiftly increase spending. Because of the pressing nature of the crisis, public procurement rules and procedures have been relaxed in many places in order to expedite transactions. However, this may also create opportunities for corruption. Using contract-level information on public spending from Colombia’s e-procurement platform, and a difference-in-differences identification strategy, we find that municipalities classified by a machine learning algorithm as traditionally more prone to corruption react to the pandemic-led spending surge by using a larger proportion of discretionary non-competitive contracts and increasing their average value. This is especially so in the case of contracts to procure crisis-related goods and services. Our evidence suggests that large negative shocks that require fast and massive spending may increase corruption, thus at least partially offsetting the mitigating effects of this fiscal instrument.

Glanzmann, Lukas et al, ‘Masterclass in Swiss Efficiency: Spotlight on Switerland’s Government-Backed COVID-19 Loan Programme for SMEs’ (2020) 35(7) Butterworths Journal of International Banking & Financial Law 475–477
Abstract: Reviews key features of Switzerland’s government-backed bridge loans for small and medium-sized enterprises, introduced in response to the coronavirus pandemic. Discusses the types of loan available, the requirements for ‘COVID-light’ and ‘COVID-plus’ loans, the potential disadvantages of participation, including a ban on borrowers making loans themselves and the penalties for non-compliance. Considers the implications for cash-pooling schemes.

Gortsos, Christos and Wolf-Georg Ringe (eds), Pandemic Crisis and Financial Stability (European Banking Institute, 2020) OPEN ACCESS
Contents:
Section I: The Broad Picture
1 Is the European Union going to help us overcome the COVID-19 crisis (Danny Busch)
2 COVID-19 and European banks: no time for lawyers (Wolf-Georg Ringe)
3 The COVID-19 crisis and financial regulation (Eddy Wymeersch)
4 Culutral reforms in Irish banks. Walking the walk during the COVID-19 pandemic (Blanaid
Clarke)
5 Mothballing the economy and the effects on banks (Matthias Lehmann)
Section II: Fiscal Response
6 European economic governance and the pandemic: Fiscal crisis management under a flawed policy process (Christos Hadjiemmanuil)
7 What recovery fund for Europe? For a dedicated equity line for business, and sound fiscal policy (Marco Lamandini, Guido Ottolenghi & David Ramos Muñoz)
8 The EU fiscal response to the COVID-19 crisis and the Banking sector: risks and opportunities (Luis Silva Morais)
Section III: Banking Regulation
9 Global pandemic crisis and financial stability (Filippo Annunziata & Michele Siri)
10 Blancing macro- and micro-prudential powers in the SSM during the COVID-19 crisis (Bart P. M. Joosen)
11 The application of the EU banking resolution framework amidst the pandemic crisis (Christos V. Gortsos)
12 Lending activity in the time of coronavirus (Concetta Brescia Morra)
Section IV: Capital Markets Regulation
13 Emergency measures for equity trading: the case against short-selling bans and stock exchange shutdowns (Luca Enriques & Marco Pagano)
14 Restrictions on Shareholder's Distribution in the COVID-19 Crisis: Insights on Corporate Purpose (Antonella Sciarrone Alibrandi & Claudio Frigeni)

Gowing, Rachel, ‘New Zealand: COVID-19 Pandemic - Legislative Response’ (2020) 35(9) Journal of International Banking Law & Regulation N110–N112
Abstract: Summarises legislative reforms relevant to the banking and finance sectors which have been implemented by New Zealand in response to the coronavirus pandemic. Details key features of initiatives including the mortgage repayment deferral scheme, the business finance guarantee scheme, the removal of loan-to-value ratio restrictions, protections relating to credit contracts and changes to insolvency law relief.

Groenleer, Martijn LP and Daniel Bertram, ‘Plus Ça Change…? How the COVID-19 Crisis May Lead to a Revaluation of the Local’ (SSRN Scholarly Paper No ID 3673583, 13 August 2020)
Abstract: With COVID-19 unfolding its deadly and disruptive force, calls from all across the political spectrum for putting an end to globalization are becoming louder. But will the pandemic really constitute a stumbling block to the inexorable machinery of growing interconnection? We argue that, as with previous global crises such as the financial crisis, it is not obvious that the COVID-19 crisis will lead to a process of de-globalization. However disastrous the consequences of international cross-linking may be for economies and societies. It is much more likely that the ‘new common’ will see an acceleration of the process of localization, already occurring as part of globalization in the ‘old common’.

Grund, Sebastian, ‘The Legality of the European Central Bank’s Pandemic Emergency Purchase Programme’ (Delors Institute Policy Brief (March 25, 2020), 21 March 2020)
Abstract: The announcement of the Pandemic Emergency Purchase Programme (PEPP) by the European Central Bank on March 18, 2020 marks an unprecedented step in the European history of monetary integration. But it is a commensurate response to the global public health emergency that the COVID-19 outbreak continues to pose as well as the financial and economic shock that it triggered. The legality of the PEPP can be defended in light of both these extraordinary macroeconomic circumstances as well as the European Court of Justice’s assessment of previous ECB bond purchase programmes. As this short essay shows, the Court’s Gauweiler and the Weiss decisions have defined the boundaries within which the ECB may design its monetary policy measures. And the PEPP does not transgress these boundaries. However, in order to mitigate the risk of any ex-post legal challenges, the legal act on which the PEPP is based should underscore the following principles, which are informed by the pertinent case law:1. The PEPP’s objectives are proportional because they address a malfunctioning of the smooth transmission of monetary policy signals across the currency area triggered by the sudden stop of economic activity, thereby undermining the singleness of monetary policy.2. The PEPP’s design is proportional because it entails the following safeguards: bond purchases are (i) restricted to EUR750 billion, (ii) limited to periods of malfunctioning monetary policy transmission channels, (iii) not selective, (iv) limited to securities with stringent eligibility criteria, and (v) subject to a limited loss-sharing arrangement.3. The PEPP does not breach the monetary financing prohibition because it (i) has no equivalent effect to bond purchases on the primary markets (due to the safeguards mentioned in 2.) and (ii) does not incentivize Member States pursue unsound budgetary policies.

Hanif, Saima, ‘Potential Legal Implications of the Regulatory Response to COVID-19’ (2020) 35(7) Butterworths Journal of International Banking & Financial Law 431–432
Abstract: Considers the main regulatory interventions by the UK banking and financial sectors in response to the coronavirus pandemic, and their potential legal implications. Reviews the commercial impact of key interventions and the possible legal consequences of government loan schemes, restrictions on capital distribution and mortgage forbearance. Discusses whether certain regulatory measures may be unlawful.

Hayes, Peter, Philip Stopford and Helen Walsh, ‘Loans in the Time of COVID-19: How Loan Documentation Has Fared in This Challenging Environment’ (2020) 35(7) Butterworths Journal of International Banking & Financial Law 441–444
Abstract: Discusses how loan agreements have evolved in response to the coronavirus pandemic. Considers the similarities and differences between the loan documentation reforms made during the pandemic and during the global financial crisis, how financial covenant issues have been addressed, borrower adjustments to terms concerning annual audited financial statements and flexibilities for incurring additional debt. Anticipates potential future developments.

Hegenberg, Flávio Edmundo Novaes and Luiz César Martins Loques, ‘Law and Economics: Discussions Concerning the 2002 Brazilian Civil Code and COVID-19’ (2020) 2(43) Revista Direito & Paz 283–306
Abstract: This text is a discussion concerning economic and legal ‘powers’ in Brazil. The context of crisis caused by the COVID-19 pandemic makes this discussion necessary. The overall context adopted here is one of Law and Economics. A brief discussion is made about the contemporary Liberal State. Some ideas concerning the 20th century workings of the state (if the state is ´social` or if it is ´minimum´) is also analysed. Some reality is offered by providing numbers collected from The World Bank. Information regarding COVID-19 as a global cause for economic crises is given. Within the text, Article 421-A of the Brazilian Civil Code is discussed. Some concluding remarks shed some light regarding what could be done to improve things in Brazil.

Hill, Julie Andersen, ‘COVID-19 and FinTech’ (2021) Consumer Finance Law Quarterly Report (forthcoming)
Abstract: The 2020 COVID-19 pandemic and the social distancing measures implemented to stop its spread will leave its mark on people, industries, and government policies long after the disease’s health risk recede. One of the industries that has been transformed is financial services. As the pandemic spread, customers flocked to online and mobile platforms for financial services. Banks turned to fintech companies for the technology and expertise to be able to safely provide these products. Thus the pandemic hastened the adoption of technology by traditional banks and opened new partnership opportunities for non-bank fintech companies. The pandemic also reoriented financial regulators toward technology. By highlighting the risks that arise when technology does not live up to its promise, the pandemic encouraged regulators to scrutinize banks’ use of technology and bank-fintech partnerships. At the same time, by highlighting the promise of technology, the pandemic encouraged regulators to use more technology in their supervision of banks. Finally, the pandemic will accelerate the transformation of some fintech companies from agile disruptors operating largely outside significant regulatory framework, to mainstream financial services companies that are regulated more like traditional banks. Policymakers will have difficult decisions about the best way to bring fintech companies within the regulatory fold. Nevertheless, the pandemic emphasized that fintech is now a critical element of a modern financial system.

Hinarejos, Alice, ‘Next Generation EU: On the Agreement on a COVID-19 Recovery Package’ (2020) 45(4) European Law Review 451–452
Abstract: Reflects on the EU’s July 2020 agreement on a recovery package to tackle the damage caused by the coronavirus pandemic, including the creation of a ‘Next Generation EU’ (NGEU) recovery fund and an updated EU budget. Details how revenue for the NGEU will be raised and explains the significance of the agreement, including its unprecedented joint debt issuance and burden sharing, and its distribution of funds to Member States by grants and loans.

Hockett, Robert C, ‘The Fed’s Municipal Liquidity Facility: Present & Future Possibilities & Necessities’ (SSRN Scholarly Paper No ID 3597732, Social Science Research Network, 10 May 2020)
Abstract: The Fed’s new Community QE Facility, which is unprecedented in Fed history, will function as a literal lifeline to States and their Subdivisions. But it remains, precisely because of its novelty, unfamiliar and possibly even off-putting or intimidating to many State and City financial officers, not to mention Mayors, Governors, City Councils and State Legislatures. It also continues to fall short of what will be required if our States, our Cities, and our federal polity itself, which the present White House occupancy is doing virtually nothing to assist, are to survive the present pandemic. Continuing unfamiliarity on the part of State and City officials with Community QE raises the danger that those in serious need of funding to address the present pandemic will not seek or receive it. It also diminishes the likelihood that City and State officials will press the Fed to do a further easing of terms – and this form of pressure will be critical if the Facility is to do all that it’s meant to do. This Memorandum is meant to solve those two problems. It first briefly summarizes what the newly eased MLF enables now. It then addresses what the new Facility probably will, and, at least as importantly, must enable in future. The Memorandum then closes with an updated three-phase ‘Game Plan’ for States and Cities to put into operation the moment the Fed makes clear that the MLF is not a mere ‘virtue signal,’ but a sincere offer of badly needed funding – by actually beginning to provide funding.

Hondius, Ewoud, ‘Corona, Millennium and the Financial Crisis’ in Ewoud et al Hondius (ed), Coronavirus and the Law in Europe (Intersentia, 2020)
Abstract: Corona may be a new issue, but epidemics are not. Legal issues related to epidemics are of all times. Two disasters which struck in recent times were the millennium bug and the financial crisis. This paper deals with the question how Dutch law has coped with the corona crisis. More in particular it addresses how the 1992 Civil Code’s new provision on unforeseen circumstances has been (non) applied in practice. The paper then turns to two international developments: the work of the International Chamber of Commerce – see also the paper by Denis Philippe in this volume – and the work of the Common core of European private law (Trento) project.

Huertas, Michael, ‘Tackling Non-Performance: Does the Banking Union Need a Pillar IV in the Form of a Single Asset Management Company--Could Covid-19 Now Be the Catalyst for Change?’ (2020) 35(11) Journal of International Banking Law & Regulation 433–443
Abstract: Interest from commentators on the feasibility of establishing a common EU or Eurozone asset management company (AMC), i.e. a ‘bad bank’, has been growing again even if the overall rate o f non-performing loans (NPLs) across the EU had hit lowest levels in 2019. Cause for such renewed interest comes courtesy of Covid-19 and the threat that the EU will need to deal with a whole new wave of NPLs and a different dynamic compared to the 2008 Global Financial Crisis (GFC). The EU’s 2020 responses to the pandemic may provide a catalyst for comprehensive solutions to what is a Europe-wide problem. This article analyses some of the recent commentary and proposes how an AMC, as a Pillar IV to the banking union, might resolve legacy as well as the range of new NPLs caused by Covid-19.

Ibrahim, Ahmed, Malack El Masry and Dania Yassin, ‘Embracing Change’ [2020] (Summer) International Financial Law Review 49–51
Abstract: Discusses how the coronavirus pandemic has affected corporate transactions and prospects of investment in the United Arab Emirates.

Idayanti, Soesi, ‘Issue to the Legal Protection of the Use of the State Budget to Handling Covid-19’ (2021) 4(1) Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences 1168–1177
Abstract: The Covid-19 pandemic, which impacted the health, social, and economic sectors as a non-natural disaster, led the President to make efforts to handle it with state financial policies by stipulating Perpu Number 1 of 2020. Budget misuse during the Covid-19 pandemic should be punishable by the death penalty because carried out when the state is facing a precarious situation; however, in Perpu No.1/2020, the Government grants immunity rights state budget managers. This legal immunity needs to be studied as a standard-issue regarding the state budget to overcome the Covid-19 pandemic. This study aims to examine the pandemic’s impact on state finances and how Government policies are in dealing with the Covid-19 pandemic. This study used a normative juridical approach with data obtained from the literature, and the results were analyzed qualitatively. The results showed that the Covid-19 pandemic resulted in the Government changing the output of the use of the state budget aimed at dealing with the pandemic and restoring the country’s economic condition due to the pandemic; the legal solution is to stipulate Perpu Number 1 of 2020, which was then approved by the DPR and became Law Number 2 2020. At the technical, operational level, the Government has also issued various policy regulations as a follow-up to Law Number 2 of 2020, which is used as an effort to deal with precarious situations as a result of the Covid-19 pandemic, such as fiscal policy stimulus, taxes, social assistance, and policies. Adjustment of regional finances. The problem that was considered urgent due to the Covid-19 pandemic led the Government to stimulate immunity in Law Number 2 of 2020.

Ilmih, Andi Aina, Kami Hartono and Ida Musofiana, ‘The Financing Restructuring Legal Analysis for Debtors Affected by Covid-19 in Sharia Multifinance Institutions’ (2021) 8(2) Jurnal Pembaharuan Hukum 172–183
Abstract: This study focuses on problematic financing by debtors affected by Covid-19 at Islamic multi-finance institutions in Semarang City, with the aim of finding the reality of the form of problematic financing experienced by debtors during the Covid-19 Pandemic. This study uses an empirical juridical approach, data analysis using descriptive-analysis methods. Based on the research that has been done, the regulation of the Financing Restructuring Law is guided by POJK Number 11/POJK.03/2020 concerning National Economic Stimulus as a Countercyclical Policy on the Impact of Coronavirus Disease 2019 which regulates asset determination, financing restructuring and provision of new funds. The impact arising from the existence of a financing restructuring policy for debtors affected by Covid-19 can be viewed from the following aspects: (1)Juridical Aspect, meaning that there are no sanctions for the financing institution as a creditor if it does not follow or apply, only based on the willingness of the creditor; (2) Economic Aspect, can help debtors to recover and stabilize the economy so that they can fulfill promises (achievements) to creditors; and for creditors the impact on financial activities or transactions that occurred during the Covid-19 pandemic can still be stable; (3)Psychological Aspects, meaning that one side fosters a strong mentality and confidence for creditors/financing customers to fulfill their obligations, and on the other hand, the existence of the presence of financial institutions is maintained in the future.

Isaac, William M, ‘How Regulators Can Kick COVID-19’s Bank Shock into Remission’ (2020) 185(53) American Banker 1
Abstract: How regulators can kick COVID-19’s bank shock into remission Congress has imposed laws, rules and ratios on financial institutions which in times like this limit the ability of lenders and regulators to do their jobs. The 2008 financial crisis was due, in no small part, to the mark-to-market accounting rule known as SFAS 157, which resulted in the senseless destruction of $500 billion of capital in the banking system.

Jackson, Howell E and Steven L Schwarcz, ‘Pandemics and Systemic Financial Risk’ (SSRN Scholarly Paper No ID 3580425, Social Science Research Network, 19 April 2020) < https://papers.ssrn.com/abstract=3580425 >
Abstract: The coronavirus has produced a public health debacle of the first-order. But the virus is also propagating the kind of exogenous shock that can precipitate – and to a considerable degree is already precipitating – a systemic event for our financial system. This currently unfolding systemic shock comes a little more than a decade after the last financial crisis. In the intervening years, much as been written about the global financial crisis of 2008 and its systemic dimensions. Additional scholarly attention has focused on first devising and then critiquing the macroprudential reforms that ensued, both in the Dodd-Frank Act and the many regulations and policy guidelines that implemented its provisions. In this essay, we consider the coronavirus pandemic and its implications for the financial system through the lens of the frameworks we had developed for the analysis of systemic financial risks in the aftermath of the last financial crisis. We compare and contrast the two crises in terms of systemic financial risks and then explore two dimensions on which financial regulatory authorities might profitably engage with public health officials. As we are writing this essay, the pandemic’s ultimate scope and consequences, financial and otherwise, are unknown and unknowable; our analysis, therefore, is necessarily provisional and tentative. We hope, however, it may be of interest and potential use to the academic community and policymakers.

Jamaruddin, Wahida Norashikin and Ruzian Markom, ‘The Application of Fintech in The Operation of Islamic Banking Focussing on Islamic Documentation: Post-COVID-19’ (2020) 3(1) International Seminar on Syariah and Law (INSLA) E-Proceedings 31–43
Abstract: FinTech is innovation, and it is developing rapidly as part of current human need dealing with financial transactions in daily life, embracing the banking industry as convenience instruments to the consumers. Adapting FinTechin Islamic banking is challenges in terms of Shariah-compliant as the essential elements of riba’,maysir, and gharar prohibited from forming part of the FinTechcomponent. Islamic finance institutions in the world face problem in dealing with financial transactions as well as saviour during pandemic COVID 19, where most countries in the world are affected and declared lockdown as an emergency solution to cutthe chain of COVID 19. Concerning the pandemic crisis, problems on the operation of Islamic banking adopted Islamic Fintech need to explore, which also concerning the conduct of legal firms in managing Islamic banking documentation. The objective of this paper is to identify the application of Islamic fintech in Islamic banking, the legal framework of Islamic fintech, issues in managing the operation and Islamic banking documentation at legal firms, and analysethe suitability of Islamic fintech in the service of Islamic banking during the Movement Control Order. The methodology used in attaining the objectives is qualitative by utilizing the library as the data centre, review the journals and articles, including collecting data from books and available reports. As a result of the study, the paper suggested new norms need a new approach by Islamic finance and any legal institution since the operation heavily relies on the adherence to Syariah requirements and guidelines issued by Bank Negara Malaysia and Security Commission. The support from the government in providing an adequate legal framework for fintech’s instrument to operate needs attention, and consultation among the experts is much welcome by the fintech community.

James, Benedict and Elli Karaindrou, ‘COVID-19 Measures from a Lender’s Perspective’ (2020) 35(7) Butterworths Journal of International Banking & Financial Law 460–464
Abstract: Considers, from the perspective of lenders, the main banking regulations introduced in response to the coronavirus pandemic. Outlines changes including reductions to some liquidity and capital buffers, the creation of payment moratoria for mortgages, the postponing of non-essential reporting, the distribution of dividends, and measures to maximise banks’ lending capacity. Discusses the uncertainties for banks and anticipates future developments.

Kazzaz, Zachary, ‘Emergency Disbursements During COVID-19: Regulatory Tools for Rapid Account Opening and Oversight’ (SSRN Scholarly Paper No ID 3656651, Social Science Research Network, 20 July 2020)
Abstract: More than 100 countries have launched emergency cash disbursement programs to alleviate financial hardships for individuals and households in light of the COVID-19 pandemic. Many of these programs are based in digital payments; however, a lack of official identification, mobile data services and the difficulties in face-to-face interactions restrict potential users from a standard customer due diligence process. Guidance from the Financial Action Task Force (FATF), the global anti-money laundering standards-setting body, encourage the use of innovative solutions for customer onboarding, specifically the risk-based approach and simplified due diligence (SDD). This paper summarizes the range of practice across jurisdictions that have employed a combination of SDD (also known as tiered CDD), licensing of non-bank financial institutions, and digital identification to enroll unbanked individuals into financial accounts so that they could receive COVID-19-related relief cash transfers. As this note concludes, jurisdictions that had adopted such practices were able to quickly ramp-up disbursement programs, bringing tens of millions of beneficiaries into the formal financial system.This report provides an analysis of varied SDD implementations and provides considerations for financial regulators looking to promote appropriate risk mitigation while digitally delivering emergency financial assistance.

Kennedy, Amy and Nicholas Pascal, ‘UK Government Support Packages: New Challenges for Lenders?’ (2020) 35(8) Butterworths Journal of International Banking & Financial Law 521–522
Abstract: Examines the remedies for lenders if borrowers default, under the Government’s coronavirus loan guarantee schemes. Contrasts the Loan Market Association’s standard form. Examines the lender’s duty of care, no transfer rights without consent, claims procedures and termination rights.

Klingler, Desiree, ‘Government Purchasing During COVID-19 and Recessions: How Expansionary Legal Policies Can Stimulate the Economy’ (2020) 50(1) Public Contract Law Journal 1-35_
_Abstract: The traditional approaches to ‘cure’ economic recessions are monetary and fiscal policies. Most economic crises are first addressed with monetary instruments, as the Federal Reserve’s extensive corporate bond purchasing program of March 24, 2020, has shown. However, when interest rates are zero or close to zero—referred to as the zero-lower bound—and the economic downturn is expected to be significant, governments often launch additional fiscal stimulus programs, such as the U.S. COVID-19 Stimulus Package in the amount of $2.2 trillion passed by Congress on March 27, 2020. But monetary and fiscal policies are not the only means of influencing an economy’s business cycle. A third and novel option is expansionary legal policies, also referred to as countercyclical regulation, which is the focus of this article.Legal instruments have been used only to a limited degree to stimulate the economy. One of the first advocates of law and macroeconomics was Yair Listokin who promotes the use of legal policies and lawyers in macroeconomic policy. In this article, the author explains and applies the idea of expansionary legal policies to the field of public procurement law. Public procurement lends itself particularly well to expansionary legal policies for two reasons. First, public contracts form a large part of the government’s expenditure side, amounting to fifteen to twenty percent of global GDP, and can therefore be used to expand the money supply. Second, government contracting is governed by a set of complex administrative rules that can be adjusted to better reflect the business cycles. This article will discuss the idea, design, application, and potential effects of expansionary legal policies by means of two procurement policies that were adopted in the United States and Switzerland in response to COVID-19 this March and compare them to Germany’s relaxation of procurement rules after the financial crisis in 2009. To protect taxpayers’ money and mitigate the risk of corruption, this article suggests legal safeguards for expansionary procurement policies. With the necessary measures in place, expansionary procurement policies will help procurement regulations to reflect economic realities more accurately and stimulate the economy by increasing and expediting spending through public projects in infrastructure, healthcare, and other sectors.

Kizil, Cevdet, Vedat Akman and Erol Muzır, ‘COVID-19 Epidemic: A New Arena of Financial Fraud?’ (SSRN Scholarly Paper ID 3899275, 17 June 2021)
Abstract: The COVID-19 epidemic is going on as a serious health problem and threat. Indeed, it is also a devastating financial and economic problem. Unfortunately, the COVID-19 epidemic is causing many firms to shut down and go out of business. This triggers unemployment and instability in countries all over the World. The developed countries armed with higher funds are able to better support their citizens and businesses compared to developing and underdeveloped countries. All countries implement different measures to eliminate the several negative effects of COVID-19 epidemic, which has undesired reflections on numerous sectors such as the health, education, tourism, food & beverages and manufacturing industries. This paper argues that, the COVID-19 epidemic in fact has deeper reflections and it may be a new arena of financial fraud. Based on this research, citizens and governments must be extra careful about the new types of financial fraud observed as a result of the COVID-19 epidemic. Also, additional and new measures are needed such as awareness and training on the subject. Especially, emerging financial fraud related to information technologies (IT) require special attention. This article suggests that, firms as well as governments must operate their internal controls and internal auditing mechanisms efficiently in order to prevent the negative consequences and financial fraud arising as a result of the COVID-19 epidemic. Emerging new types of financial fraud in the COVID-19 epidemic era and recommendations to minimize their negative effects are discussed.

Kokkinis, Andreas and Andrea Miglionico, ‘The Role of Bank Management in the EU Resolution Regime for NPLs’ (2020) 6(2) Journal of Financial Regulation 204–232
Abstract: During the global financial crisis, the growth of non-performing loans (NPLs) was partly a consequence of lack of regulatory oversight and poor bank internal processes. NPLs require intrusive monitoring tools and effective corporate governance is crucial in dealing with the deterioration of loans; however, perverse incentives to delay their recognition leave the process at risk. The EU legislation has adopted a set of regulatory measures to resolve and restructure non-performing exposures. While existing literature approaches NPLs from a regulatory and accounting perspective, this article takes a distinctive corporate governance view in order to conceptualize the NPL problem. The strategies through which senior management and shareholder incentives may undermine regulatory objectives on NPL disclosure are identified and an evidence-based approach to reconsidering and settling these problems is advanced.

Kreltszheim, David, ‘Creating Deeds in Electronic Form: Why We Should Not Be Deterred by the Ghosts of the Past’ [2020] Australian Banking and Finance Law Bulletin 68–74
Abstract: The electronic transactions laws have been on the statute books in Australia for 20 years. But 5 years ago, a highly influential text advanced a powerful argument that deeds cannot be entered into by electronic communications. And last year a Supreme Court judge opined in passing that had it been necessary to decide the question, the judge would have concluded that it remains a common law requirement of a deed that it be written on paper. Why is it so? This article considers how we got to where we are. It suggests that the electronic transactions laws can be used to facilitate parties’ entry into deeds by means of electronic communications. It concludes, however, that given the experience of the last 20 years the best course would be for there to be further legislative intervention, ideally on a national basis. It suggests that the temporary COVID-19-driven reforms relating to deeds could be extended from time to time until the further legislative intervention happens.

Le Roux, Matthieu, Olivier Bustin and Carolina Reis, ‘Gabon: Priority Measures’ [2020] (Summer) International Financial Law Review 69–72
Abstract: Gabon responded quickly to COVID-19, leveraging off its experience with ebola and cholera. This article reviews the results of the government’s actions and what the pandemic says about Gabon’s future economic development.

Levitin, Adam J, Lindsay A Owens and Ganesh Sitaraman, ‘No More Bailouts: A Blueprint for a Standing Emergency Economic Resilience and Stabilization Program’ (Roosevelt Institution Great Democracy Initiative Report, 30 June 2020)
Abstract: Since the COVID-19 pandemic first landed our shores in late January, Congress has scrambled to pass five relief and recovery packages to deal with the health and economic fallout. The first included just $8.3 billion in spending—an astonishingly small sum given the threat of the virus. The third bill included critical spending priorities for struggling families, but was paired with a no-strings-attached $500 billion slush fund for corporate America. The fourth and fifth bills remedied problems with the third bill—Congress didn’t appropriate enough money for its signature small business relief program, the Payroll Protection Program, and needed to top it up (fourth bill), and then needed to extend the loan repayment period (fifth bill) for the program because most businesses had yet to reopen and begin generating new revenue. Congress is likely to take up a sixth bill in late July, in part to deal with the imminent expiration of the temporary expanded unemployment insurance benefits passed in the third bill.This ad hoc approach to crisis policymaking is inefficient at best and malpractice at worst. Delays have resulted in bankruptcies and closures for businesses large and small and countless hardships for the more than 40 million Americans who have filed jobless claims since March. There is a better way.In this paper we propose a standing emergency economic resilience and stabilization program that will be deployed in the event of an economic emergency. The program has four central components: 1. An off-the-shelf, bankruptcy-based restructuring process for large or publicly- traded firms that involves a federal equity stake and a potential federal senior secured loan; 2. A program for smaller businesses to cover payroll and operating expenses to prevent mass layoffs and closures on Main Street; 3. A financial system infrastructure reform to enable direct government payments to consumers and businesses without reliance upon private intermediaries; and, 4. A system of automatic stabilizers to engage policy tools without repeated and recurrent congressional action, including a suite of programs to address housing insecurity for both renters and homeowners.This emergency economic resilience program would blunt the foreseeable impacts common to all recessions—unemployment, income shocks, and liquidity constraints— so that Congress can focus its attention on the unique causes of the particular downturn. In the case of the most recent downturn, had such a program been in place, Congress would have been able to spend the lion’s share of the spring narrowly focused on testing production, building out a community health corps of contract tracers, and supporting the development of a vaccine, instead of scrambling to patch together an economic relief program.

Loayza, Norman, ‘Costs and Trade-Offs in the Fight Against the Covid-19 Pandemic: A Developing Country Perspective’ (World Bank Research and Policy Briefs No 148535, 15 May 2020)
Abstract: The world is experiencing the worst pandemic crisis in one hundred years. By mid-April 2020, more than 80 percent of countries around the world had imposed strict containment and mitigation measures to control the spread of the disease. The economic fallout has been immense, with dire consequences for poverty and welfare, particularly in developing countries. This Brief first documents the global economic contraction and its potential impact on developing countries regarding macroeconomic performance, poverty rates, and incomes of the poor and vulnerable. It then argues that the pandemic crisis may hurt low- and middle-income countries disproportionately because most of them lack the resources and capacity to deal with a systemic shock of this nature. Their large informal sectors, limited fiscal space, and poor governance make developing countries particularly vulnerable to the pandemic and the measures to contain it. Next, the Brief reviews recent epidemiological and macroeconomic modelling and evidence on the costs and benefits of different mitigation and suppression strategies. It explores how these cost-benefit considerations vary across countries at different income levels. The Brief argues that, having more limited resources and capabilities but also younger populations, developing countries face different trade-offs in their fight against COVID-19 (coronavirus)than advanced countries do. For developing countries, the trade-off is not just between lives and the economy; rather, the challenge is preserving lives and avoiding crushed livelihoods. Different trade-offs call for context-specific strategies. For countries with older populations and higher incomes, more radical suppression measures may be optimal; while for poorer, younger countries, more moderate measures may be best. Having different trade-offs, however, provides no grounds for complacency for developing countries. The Brief concludes that the goal of saving lives and livelihoods is possible with economic and public health policies tailored to the reality of developing countries. Since ‘smart’ mitigation strategies (such as shielding the vulnerable and identifying and isolating the infected) pose substantial challenges for implementation, a combination of ingenuity for adaptation, renewed effort by national authorities, and support of the international community is needed. The lockdowns may be easing, but the fight against the pandemic has not been won yet. People and economies will remain vulnerable until a vaccine or treatment are developed. The challenge in the next few months will be to revive the economy while mitigating new waves of infection.

López-Santana, Mariely and Philip Rocco, ‘Fiscal Federalism and Economic Crises in the United States: Lessons from the COVID-19 Pandemic and Great Recession’ (2021) 51(3) Publius: The Journal of Federalism 365–395
Abstract: The architecture of fiscal federalism in the United States represents an obstacle for prompt and comprehensive policy responses to economic crises, especially by subnational levels of government. As both a public health and economic crisis, the COVID-19 pandemic has put unique fiscal pressures on subnational governments. This article reviews the pandemic’s fiscal effects on these governments, as well as the federal government’s response. By comparing the response to the COVID-19 crisis during the Trump administration with the response to the Great Recession during the Obama administration, we show that while the speed and magnitude of federal aid was unprecedented in 2020, it was nevertheless conditional in nature and beset by familiar political and institutional obstacles. Despite major fiscal pressures, state revenues rebounded earlier than expected, in part due to the relaxation of public health measures and the collection of taxes from online transactions; yet, state resources remained strained throughout the year, especially in states reliant on the hospitality and the oil sectors. And while local property taxes were buoyed by a surging housing market, cities and counties were confronted with declining revenue from other sources and intense emergency spending needs. Thus, despite unprecedented levels of federal support for state and local governments, the legacies of ‘fend for yourself’ federalism live on.

Macey-Dare, Rupert, ‘COVID-19: Assessing Some Potential Global Economic, Business and Legal Impacts’ (SSRN Scholarly Paper No ID 3615148, 31 May 2020)
Abstract: The new and fast evolving COVID-19 global pandemic has already caused, according to the IMF, ‘the worst downturn since the great depression’. This paper considers what the history and scientific analysis of previous large scale economic and disease shocks and current economic modelling can tell us about the likely scale and location of the challenge to global business, which are likely to play out in due course through legal restructuring, bankruptcy and litigation channels.Previous economic shocks briefly considered include: the (2007-8) financial crisis and its aftermath, WW1 (1914-18) and WW2 (1939-45), Wall Street Crash (1929) and Great Depression (1930-36), the collapse of the FSU and its aftermath (1990-97) and the 9-11 attacks (2001).Previous epidemics and pandemics briefly considered include: Ebola, SARS, MERS, HIV/AIDS, Malaria, Asian flu (1957), Spanish flu (1918-19) and the Black Death (14th century).Initial epidemiological, SIR, and global economic modelling results and uncertainties are also considered, and some of the most vulnerable business sectors identified.

Mack, Nicholas, ‘The COVID-19 Pandemic Highlighted the Need for Mandated ESG Disclosures: Now What?’ (SSRN Scholarly Paper ID 3921878, 10 September 2021)
Abstract: This is not simply your run-of-the-mill COVID-19 article. No, instead, this article highlights a salient point that has been right in front of our eyes this whole time and COVID-19 simply took our blinders off. ESG—short for environmental, social, and governance—is gaining significant momentum both at the firm level and in investment strategy, yet the SEC is trailing behind in ensuring the market is adequately informed of firms’ ESG information. The COVID-19 pandemic initially threw the market into a downward spiral, but most ESG funds outperformed the market in the midst of financial downturn. Why is that and where do we go from here?

Menand, Lev, ‘Unappropriated Dollars: The Fed’s Ad Hoc Lending Facilities and the Rules That Govern Them’ (European Corporate Governance Institute, Law Working Paper No 518/2020, 16 May 2020)
Abstract: In response to the spread of COVID-19, the Federal Reserve has established fourteen ad hoc facilities to lend to financial firms, foreign central banks, nonfinancial businesses, and state and local governments. This Article reviews these facilities, explains what they are for, and examines the statutory rules that govern them. It distinguishes between seven liquidity facilities designed to backstop deposit substitutes issued by shadow banks and seven credit facilities designed to invest directly in the real economy. Ten of these facilities – three of the liquidity facilities and all seven of the credit facilities – are contemplated by the CARES Act, which appropriates money for the Treasury Secretary to invest in them. But all ten are inconsistent with at least one of the following three provisions of existing law, none of which the CARES Act explicitly amends: (1) section 13(3)(B)(i) of the Federal Reserve Act, which requires the Fed to ensure that 13(3) lending is ‘for the purpose of providing liquidity to the financial system’; (2) section 13(3)(A), which requires the Fed to ‘obtain evidence’ that participants are ‘unable to secure adequate credit accommodations’ from other banks; and (3) section 10(a) of the Gold Reserve Act, codified at 31 U.S.C. § 5302, which limits the Treasury Secretary to using the Exchange Stabilization Fund to ‘deal’ in ‘securities’ consistent with ‘a stable system of exchange rates.’ Of the four liquidity facilities not contemplated by the CARES Act, two are inconsistent with any reasonable interpretation of section 14(2)(b) of the Federal Reserve Act, which authorizes the Fed to buy and sell government debt only ‘in the open market,’ and one is inconsistent with a similar requirement in section 14(1) regarding foreign currency. (Although these facilities are permitted by sections 13(13) and 13(3) respectively.) Hence thirteen of the Fed’s fourteen facilities as currently constituted are in tension with either the Federal Reserve Act, the Gold Reserve Act, or both. Three conclusions follow. First, most of the Fed’s current, critical lending activities are an exception to the baseline statutory framework, permissible only in conjunction with the CARES Act. Second, Congress’s failure to amend that framework is obscuring the fact that it is asking the Fed to take on substantial new responsibilities – ones for which it was not designed and which it may struggle to discharge. Third, Congress should update our money and banking laws to clarify the rules governing Fed lending, reduce the need for monetary backstops, and improve the government’s ability to respond quickly and effectively to fiscal emergencies in the future.

Micklitz, Hans-Wolfgang, ‘The COVID-19 Threat: An Opportunity to Rethink the European Economic Constitution and European Private Law’ (2020) 11(2) European Journal of Risk Regulation Special Issue-‘Taming COVID-19 by Regulation’ 249-255
Extract from Introduction: The COVID-19 threat offers legal scholars a unique opportunity to seriously think about the legal order that should govern the society we want to live in and an economy that serves the expectations of people in the post-COVID-19 world.7 The COVID-19 threat has opened a window of opportunity for transgressing boundaries, for thinking the unthinkable: a fundamental revision of the European Economic Constitution and therewith European private law.

Mooij, Annelieke AM, ‘The Legality of the European Central Bank’s Pandemic Emergency Purchase Programme’ (BRIDGE Network Working Paper No 5, 19 August 2020)
Abstract: The COVID-19 crisis has a big impact upon the European economy. To restore its transmission mechanisms and mitigate the financial impact the European Central Bank(ECB) introduced its Pandemic Emergency Purchase Programme (PEPP). A €750 million purchasing plan. This paper discusses the legality of these plans using the European legal framework and the recent framework generated by the German Constitutional Court (GCC). This paper claims the PEPP is legal under the European framework. The PEPP would not have been considered legal by the German Constitutional Court, though this probably changed with some of the recent developments. This paper furthermore analyzes the impact of this programme upon the mandate of the ECB. It describes the change of the role of the ECB from a cautious bank to a bank ready to fight a crisis. This role has generated tension between the core and periphery countries. These tensions result from the underlying flaw in the EMU which can only be solved by further integration or disintegration.

Mungmunpuntipantip, Rujittika, ‘COVID-19 and Securities Laws: A Contemporary Legal Issue’ (2020) 3(2) Journal of Capital Market and Securities Law (advance article, published 20 November 2020)
Abstract: COVID-19 pandemic is the present global problem. The new disease already attacks all continent and more than 100 million infected persons has already been recorded worldwide since its first appearance in 2019. The legal correspondence to the emerging disease is an interesting issue. Regarding COVID-19, there are many legal control measures for diseases containment. The objective of this article is to give an overview on COVID-19 outbreak and securities laws interrelationship. The retrospective literature analysis on the international publication regarding COVID-19 outbreak and legal containment is done. In this specific article, the authors discuss on specific securities laws for legal control of COVID-19. The finding from this study shows that there are advantages of legal measures for management of pandemic but there are still possible adverse effects of legal measure implementation. The utility of this work is a note for further of requirement for weighing between utility and possible side effect of the new laws. Nevertheless, since there are still limited reports on impact securities laws for COVID-19 containment, the additional monitoring of future literatures for fulfilling the knowledge gap is required.

Neurath, Daniel, ‘Circuit Breakers: A legal analysis of volatility safeguards in the rules of stock exchanges on the occasion of the COVID-19 crisis’ (2020) 32(4) Zeitschrift für Bankrecht und Bankwirtschaft 259–264
Abstract: This paper examines circuit breakers (CBs), i. e. emergency systems of trading venues that interrupt or restrain trading when significant price movements of financial instruments occur. After a description of the ratio legis and the economic fundamentals, the genesis and the different forms of CBs are presented. The European legal framework is then outlined. The relevant rules of the Frankfurt Stock Exchange (FWB) serve as an example.

Ni, Xiaoran, ‘Litigating Crashes? Insights from Security Class Actions’ (SSRN Scholarly Paper No ID 3591634, 1 May 2020)
Abstract: Investors tend to litigate large stock price declines, i.e., file ‘stock-drop lawsuits’. Enterprising plaintiffs’ attorneys seek to take advantage of the stock market declines that have accompanied the COVID-19 outbreak in early 2020 by filing class action lawsuits. However, it is less clear whether the ex-ante threat of security class actions can deter stock price crashes. To address this question, we exploit the 1999 ruling of the Ninth Circuit Court of Appeals that discourages security class actions as a quasi-exogenous shock, and find that reducing the threat of security class actions leads to a significant increase in stock price crash risk. This effect is more pronounced for firms faced with higher litigation risk, with worse earnings quality and weaker monitoring from auditors, and is partially driven by decreased timeliness of bad-news disclosure. Our overall findings highlight the importance of security class actions in constraining bad-news hoarding and maintaining market stability.

Odinet, Christopher K, ‘Predatory Fintech and the Politics of Banking’ (2021) 106(4) Iowa Law Review 1739–1800
Abstract: With American families living on the financial edge and seeking out high cost loans even before COVID-19, the term financial technology or ‘fintech’ has been used like an incantation aimed at remedying everything that’s wrong with America’s financial system. Scholars and supporters from both the public and private sector proclaim that innovations in financial technology will ‘bank the unbanked’ and open new channels to affordable credit. This exuberance for all things tech in finance has led to a quiet yet aggressive deregulatory agenda, including, as of late, a federal assault via rulemaking on the ability of states to police the cost and privilege of extending credit within their borders. This deregulation and the ethos behind it have made space for growth in high cost, predatory lending that reaches across state lines via websites and smart phones and that is aggressively targeting cash-strapped families. These loans are made using a business model whereby funds are funneled through a group of lightly regulated banks in a way designed to take advantage of federal preemption. Fintech companies rent out and profit from the special legal status of these bank partners, which in turn keeps the bank’s involvement in the shadows. Stripping down fintech’s predatory practices and showing them for what they really are, this Article situates fintech in the context of this country’s longstanding dual banking wars, both between states and the federal government and between consumer advocates and banking regulators. And it points the way forward for scholars and regulators willing to shake off fintech’s hypnotic effect. This means, in the short term, using existing regulatory tools to curtail the dangerous lending identified here, including by taking a more expansive view of what it means for a bank to operate safely and soundly under the law. In the long term, it means having a more comprehensive and national discussion about how we regulate household credit in the digital age, specifically through the convening of a Twenty-First Century Commission on Consumer Finance. The Article explains how and why the time is ripe to do both. As the current pandemic wipes out wages and decimates savings, leaving desperate families turning to predatory fintech finance ever more, the need for reform has never been greater.

Ojo D Delaney, Marianne, ‘Achieving Targeted Aims and Objectives of Fiscal, Monetary, Prudential Policy Responses Post Regulatory Crises and Global Pandemics’ (SSRN Scholarly Paper No ID 3682765, 28 August 2020)
Abstract: Even though it has recently been highlighted that the timeline for recovery from the ongoing pandemic is highly uncertain and ‘will depend heavily on the course of the pandemic’, consumer confidence and expectations, also impact the level of consumer spending and the role of providing greater certainty as regards the resumption of economic activity, ultimately, lies with respective governments.What measures could be introduced as incentives to encourage banks to make greater use of macro prudential policy tools and particularly those targeted towards Basel III objectives and tools introduced through the conservative, countercyclical buffers, as well as liquidity (Liquidity Coverage Ratio, Net Stable Funding Ratios) and leverage ratio tools of supervision?How can bank lending be encouraged as a means of achieving the targeted aim of boosting economic activity?As well as addressing the afore mentioned issues, this paper aims to consider the impact of recent Covid-19 regulatory measures on bank activities, incentives and risk taking activities. Further, it aims to explore possibilities whereby Basel III measures, which have been designed to address banking and economic problems during periods of economic downturns could be implemented and taken greater advantage of, more effectively.As the paper will further highlight, innovative approaches are increasingly being embraced and adopted by many businesses who recognize the need to adapt to a changing environment and way of life. Herein lies a role, not only for governments, employees and employers in facilitating speedier resumption of economic activities and a return to economic recovery, but also in ensuring that efforts undertaken by regulatory bodies, as well as central bank and federal regulators, achieve their intended and maximal objectives.

Ojo D Delaney, Marianne, ‘The Year the World Stood Still: Lessons and The Unquantifiable Consequences of the COVID-19 Outbreak, The Social Pandemic’ (2020) 2 Centre for Innovation and Sustainable Development Economic Review_
_Abstract: In its recent March report, two particularly note worthy observations are made in relation to the OECD’s projections and predictions about possible outcomes of the recent COVID-19 outbreak (See Le Figaro, 2020):‘The OECD put forward two main possible scenarios: The first, the basic one, which considers that the epidemic will peak in the first quarter following, and that its distribution in the rest of the world will be relatively contained…’The COVID-19 has not only impacted on a social, unprecedented magnitude as never before seen, with the cancellation of major sports tournaments and events, the deferral of the 2020 Olympics, but also highlights the importance of never under estimating a potentially devastating – and particularly unknown unprecedented unchartered phenomenon.Whilst the magnitude and consequences of the outbreak can certainly not be compensated – at least for many, or even quantified, it is hoped that greater cooperation between global economies, will be fostered in the ongoing efforts to find a solution to address the outbreak. This paper is aimed at contributing to the literature on a topic on which previous literature, at least prior to December 12 2019, practically and literally, in respect of COVID-19, did not exist. Many major economies and global economies have extended shut downs from excluding essential workers, to 80-90% of its citizens being ordered to stay at home. Whilst it is certainly crucial to ensure that the outbreak is contained, it appears that certain economies, given uncertainties associated with the nature, scope of recent developments, are willing to take risks at salvaging their economies. At what stage does a government decide that prevailing restrictive social distancing measures should be relaxed? What are possible mental, long term consequences associated with, and attributable to a protracted economic shut down? What options exist for monetary policy and central banks in particular, given less options available amidst historically low interest rate levels? These constitute some of the questions which this paper aims to address

Packin, Nizan Geslevich, ‘In Too-Big-To-Fail We Trust: Ethics and Banking in the Era of COVID-19’ [2020] (5) Wisconsin Law Review 1043–1064
Abstract: The COVID-19 economic crisis has brought to light something very broken in the American banking system—banks prioritize their own profits over the interests of those they serve and interests of social justice. And they are permitted to do so because they do not owe a fiduciary duty to their customers and are not social welfare maximizing entities.In an effort to support the economy, the US government passed numerous stimulus acts, which included, among other things, a Paycheck Protection Program (PPP), and the distribution of relief checks to consumers. To effectuate the massive distribution of liquidity on an expedited basis, the government relied on big banks. But instead of prioritizing the public welfare, the banks were focused on their bottom lines and thus did not carry out the true intent of the stimulus. For example, with respect to the PPP, although the Small Business Administration was required to process the loans on a first-come, first-served basis, the banks were not. And absent that requirement, the banks prioritized richer and bigger customers. As a result, women and minority-owned small businesses, as well as peripheral area-based small businesses, found themselves facing more barriers to getting loans. Similarly, with respect to the direct distribution of relief checks to consumers, banks prioritized their own interests over those of their customers. For example, in an effort to collect bank debt, banks froze and seized the funds from government relief checks deposited into consumer accounts before the consumers that needed those funds received them. Consequently, various state attorney generals and courts had to intervene, and mandate that the consumers be permitted to use the funds as the government had intended—for necessities like food and shelter.There are several techniques we can employ to modify banks’ ethical behavior and cultural norms. This Essay discusses such methods, which include (i) a top-down regulatory approach; (ii) the creation of market-led initiatives; (iii) an interpretive fix, offered by the judicial system; and (iv) a public criticism and shaming semi-regulatory approach.

Parchimowicz, Katarzyna and Ross Spence, ‘Basel IV Postponed: A Chance to Regulate Shadow Banking?’ [2020] (2) Erasmus Law Review_
_Extract from Introduction: The aim of this study is to explore the significance of the most recent set of changes to the Basel III framework – the so-called Basel IV6 – both in relation to the rise of the SBS and in the context of current coronavirus-related developments. In doing so, we intend to demonstrate that ever more stringent regulation and supervision of the TBS without creating an analogous framework for the SBS is not going to make the financial system more stable. Our contribution will be structured as follows: Section 2 will explain the shadow banking phenomenon, from its origins to the struggle to accurately define it. Section 3 will describe the rise of the SBS by demonstrating that the impact of prudential regulation on profitability has resulted in the exploitation of regulatory arbitrage, leading to new forms of financial innovation. In that context, dichotomy between TBS and SBS and the previous Basel Accords will be discussed. This analysis will provide a crucial benchmark showing why market participants keep shifting their activities towards the less stringently regulated SBS. Section 4 will examine the specific example of Basel IV and the main novelties therein. Basel IV has arguably resulted in further debate, namely that the regulation of the TBS has deepened the resulting imbalance between the TBS and the SBS. However, its implementation has been postponed in order not to additionally burden banks dealing with the current coronavirus crisis. Could it be seen as a chance to correct what was omitted/add the SBS to the picture? Section 5 includes policy recommendations and concludes the discussion.

Peihani, Maziar, ‘From (No) Bail-Outs to Bail-in: A Comparative Assessment of Canada’s Bank Recapitalization Regime’ (SSRN Scholarly Paper ID 3850982, 21 May 2021)
Abstract: Bail-in within resolution has been at the forefront of the regulatory agenda to end too-big-to fail. The article examines Canada’s recently introduced bail-in framework through a comparative lens, in the backdrop of the COVID-19 pandemic. It argues that Canada embraces a less stringent approach than its international counterparts in applying the bail-in tool and permitting use of public funds. This flexible approach is preferable as it can help the stabilization of the bailed-in bank by facilitating its access to liquidity. Yet, the administration of the bail-in tool will not be without difficulties in Canada. The extensive administrative discretion and opaqueness embedded in the regime come at the expense of rule of law and creditor protection. Further challenges arise from the country’s highly concentrated financial system and interdependencies among the large banks which can also result in a reluctance to turn to bail-in if systemic solvency concerns are present.

Peihani, Maziar, ‘Regulation of Cyber Risk in the Banking Sector: A Canadian Case Study’ (SSRN Scholarly Paper ID 3880115, 4 July 2021)
Abstract: Cyber risk is one of the greatest threats facing any modern financial system, a result of increasing dependence on technology and the appeal of troves of personal data to well-equipped hackers. This article examines the governance of cyber risk in the Canadian banking system in the backdrop of the COVID-19 Crisis which has led to a surge in cyber attacks. It argues that the existing operational risk framework, developed by the Basel Accords, is unfit to handle the unique challenges posed by cyber risk. Cyber incidents are unlike traditional operational disruptions in both their dynamism and impact, and are not adequately captured by backward-looking proxies, such as historical losses. There is also a mismatch between the traditional risk-based supervision, which relies on annual risk rating of banks, and the quickly changing cyber profile of regulated entities. The article calls for a paradigm shift in banking regulation such that cyber resilience is set as an explicit regulatory objective for both individual firms and the system as a whole. It outlines a number of strategies which can help banks and regulators navigate and adapt to the ever-changing cyber landscape.

Pejović, Aleksandar-Andrija, ‘“Would Money Make a Difference?”: How Effective can the Rule-Of-Law-Based Protection of Financial Interests in the EU Structural and Enlargement Policy Be?’ (2021) 5(EU 2021 – The Future of the EU in and After the Pandemic) EU and Comparative Law Issues and Challenges Series (ECLIC) 1021–1048
Abstract: In recent years, the rule of law and, especially, its ‘proper’ implementation has become one of the most debated topics in Europe in recent years. The ‘Big Bang Enlargement’ marked the beginning of dilemmas whether the new EU Member States fulfil the necessary rule of law criteria and opened the way for divergent views on how to implement TEU Article 2 values in practice. Furthermore, constant problems and difficulty of the candidate countries to fulfil the necessary rule of law criteria added to the complexity of the problem. In turn, the European institutions have tried to introduce a series of mechanisms and procedures to improve the oversight and make the states follow the rules - starting from the famous Treaty on the European Union (TEU) Article 7, the Rule of Law Mechanism, annual reports on the rule of law and the most recent Conditionality Regulation. The Conditionality Regulation was finally adopted in December 2020 after much discussion and opposition from certain EU Member States. It calls for the suspension of payments, commitments and disbursement of instalments, and a reduction of funding in the cases of general deficiencies with the rule of law. On the other hand, similar provisions were laid out in the February 2020 enlargement negotiation methodology specifying that in the cases of no progress, imbalance of the overall negotiations or regression, the scope and intensity of pre-accession assistance can be adjusted downward thus descaling financial assistance to candidate countries. The similarities between the two mechanisms, one for the Member States, the other for candidate countries shows an increased sharing of experiences and approaches to dealing with possible deficiencies or breaches of the rule of law through economic sanctioning, in order to resolve challenges to the unity of the European union. The Covid-19 pandemic and the crisis it has provoked on many fronts has turned the attention of the Member States (i.e. the Council) away from the long running problematic issues. Consequently, the procedures against Poland and Hungary based on the Rule of Law Mechanism have slowed down or become fully stalled, while certain measures taken up by some European states have created concerns about the limitations of human rights and liberties. This paper, therefore, analyses the efforts the EU is making in protecting the rule of law in its Member States and the candidate countries. It also analyses the new focus of the EU in the financial area where it has started to develop novel mechanisms that would affect one of the most influential EU tools – the funding of member and candidate countries through its structural and enlargement policy. Finally, it attempts to determine and provide conclusions on the efficiency of new instruments with better regulated criteria and timing of activities will be and how much they would affect the EU and its current and future member states.

Pekmezovic, Alma, ‘COVID-19 Impacts on Financial Market Integration in the ASEAN: Regional Trends, Challenges and Future Outlook’ (2020) 37(8) Company and Securities Law Journal 565–574
Abstract: An important aspect of regional economic integration is the integration of financial markets. Prior to the outbreak of COVID-19, financial market integration in the Association of Southeast Asian Nations (ASEAN) region was expected to accelerate. ASEAN Member States along with other countries in the Asia-Pacific region, including Australia and New Zealand, took active steps to create an enabling environment for promoting the integration of financial markets and improving banking liberalisation. The launch of the ASEAN Economic Community represented a watershed moment in this process. However, as countries respond to the current global economic slowdown, they are likely to re-evaluate region-level co-operation on matters of financial and economic policy. To date, ASEAN economic integration has not produced the supranational supervisory structures and centralised institutions associated with integration in other regional trading blocs such as the European Union. This remains a substantial impediment to continued financial market integration, especially in the context of the current COVID-19 crisis.

Persaud, Avinash, ‘COVID-19: Did the Banking Reforms That Followed the Last Crisis Make a Difference?’ (2020) 35(8) Butterworths Journal of International Banking & Financial Law 515–516
Abstract: Discusses why so far the coronavirus pandemic has not caused a major financial crisis, whether the 2008 financial crisis resulted in better regulation of important banks which helped to avert another crisis, or the relationship between financial boom and subsequent crash was missing.

Picton, Thomas and Zena Kukreja, ‘Beyond COVID-19: Current Developments in Public and Private UK Securitisations’ (2020) 35(8) Butterworths Journal of International Banking & Financial Law 564–567
Abstract: Discusses the securitisation of consumer debts, implications of the payment holidays which were offered in the coronavirus pandemic, and measures implemented by issuers to protect their interests.

Rahman Rafid, Raihan, ‘E-Commerce Bubble during the Pandemic and Post-COVID Sustainability in Bangladesh: Quest for a Facilitating Legal Environment’ (Paper presented at South Asian Institute of Advanced Legal and Human Rights Studies (UMSAILS)-UAP International Virtual Conference on the Impact of Covid -19 Pandemic in the Legal Field 2021) 2021
Abstract: The COVID-19 pandemic has significantly changed the commercial trajectory of world business, especially for Business to Consumer (B2C) transactions. Social distancing, lockdown and other measures in response to the COVID- 19 pandemic have led urban consumers to lean more towards e-commerce. In Bangladesh, e-commerce witnessed an exponential growth of 166% in 2020 compared to its usual 50% growth per annum. However, the country is yet to introduce any special law for regulating the e-commerce sector. The legal environment is primarily premised on the laws designed for traditional business transactions. Hence, in the absence of a stable legal environment, the pandemic induced e-commerce bubble and associated treachery may shatter this potential sector prematurely. Against this backdrop, this research paper reviews and recommends laws, rulemaking, capacity building, enforcement, and establishing central regulatory watchdog to minimize regulatory gaps, ensure policy consistency, and streamline compliance obligations to meet specific challenges arising from e-commerce. Following a socio-legal research approach, this paper will evaluate the existing regulatory mechanism in Bangladesh for three priority areas: (i) cyber security, (ii) digital privacy and, (iii) protection of consumer rights. Relevant legal texts from will be considered for this purpose and recommendations based on existing regulation approach applied in the other nations would assist policymakers in developing a sustainable e-commerce friendly legal environment in post-COVID Bangladesh.

Rose, Paul, ‘Toward a National Resilience Fund’ [2021] Northwestern University Law Review Online (forthcoming)
Jurisdiction: USA
Abstract: The economic impact of COVID-19 has been catastrophic for state and local governments. By Federal Reserve estimates, income and sales revenues will have declined by over $50 billion in fiscal year 2020 and may decline by as much as $137 billion in 2021. Pandemics are, of course, not the only catastrophic risks we may face in coming years. Financial crises, natural disasters, social justice crises, and climate change-related catastrophes all present serious risks, and often have a compounding and exacerbating effect on one another. These risks are also especially salient for state and local governments, which are at the forefront of crisis response. The legitimacy of government is tested and measured by its ability to respond to these challenges, but existing state and local financial frameworks have proven too thin and brittle to absorb shocks like COVID-19 or the Financial Crisis. This commentary describes how a national resilience fund, with subaccounts created for each state and territory, would strengthen the ability of state and local governments to respond to crises that are likely to arise in the coming years. A national resilience fund could be based on a familiar, flexible structure that has been in use for decades: the unemployment trust fund. Such a structure would help insulate the resilience fund from local political pressures, yet would have the financial strength to help state and local governments absorb the costs associated with severe crises such as pandemics and natural disasters, thereby helping to preserve governmental legitimacy in times of severe social stress.

Salah, Omar, ‘Netherlands: Economic Conditions: COVID-19’ (2020) 35(7) Journal of International Banking Law & Regulation N83–N85
Abstract: Details measures by the Netherlands’ Government to address the impact of the coronavirus pandemic on the economy, including provisions allowing companies to defer the payment of taxes, temporary reductions on the interest on overdue tax, and a guarantee enterprise facility which guarantees 50% of bank loans to corporate borrowers.

Saurugger, Sabine and Fabien Terpan, ‘Integration through (Case) Law in the Context of the Euro Area and Covid-19 Crises: Courts and Monetary Answers to Crises’ (2020) 42(8) Journal of European Integration 1161–1176
Abstract: The aim of this article is to analyse whether, why and with which consequences courts support or on the contrary oppose decisions taken by non-majoritarian institutions and governments, and hence constrain or, on the contrary, enhance the integration process in times of crises. Focusing on judicial decisions on the subject of the European Central Bank’s (ECB) monetary policy by the Court of Justice of the EU (CJEU) and the German Federal Constitutional Court (FCC) during the Euro area and the Covid-19 crises, the article shows that during the Euro area crisis, the European judicial system had an enhancing effect on the ECB’s monetary policy; on the contrary, it has had a constraining effect during the Covid-19 crisis. Four different institutionalist explanations are put forward, relating to: the severity of the crisis; the timing of the judgments; the legal framing of the judgments; the functioning of the judicial system.

Schillig, Michael, ‘Banking and Finance after COVID-19’ (2021) 32(1) King’s Law Journal 49–59

Schillig, Michael, ‘EU Bank Insolvency Law Harmonization: What Next?’ (SSRN Scholarly Paper No ID 3678723, 21 April 2020)
Abstract: After the COVID-19 crisis has subsided, the (further) harmonization of bank insolvency law will again be high on the agenda of EU regulators and policy makers. On the basis of an analysis of the status quo pain points, the paper advocates the extension of the BRRD resolution regime to all bank failures, regardless of their systemic relevance. This could be achieved by removing the public interest requirement as part of the resolution trigger. The ensuing consolidation would significantly reduce complexity and enhance the transparency and legitimacy of the EU crisis management framework.

Schillig, Michael, ‘The Too-Big-To-Fail Problem and the Blockchain Solution’ (SSRN Scholarly Paper No ID 3680759, 25 August 2020)
Abstract: The paper seeks to ascertain whether and to what extent blockchain technology may contribute to solving the politically and socially intractable problems of effectively resolving distressed TBTF financial institutions. It revisits the TBTF problem in the light of the Global Financial Crisis and the COVID-19 crisis and provides an overview of the constantly evolving DLT/blockchain ecosystem. It further seeks to address the main arguments commonly advanced by blockchain sceptics/opponents against the more widespread adoption of crypto-assets. Given blockchain’s capacity for decentralization, transparency and automation, the technology seems particularly well suited for tackling TBTF. On that basis, the paper discusses the potential impact of blockchain technology on (TBTF) bank resolution in three possible scenarios. Gradual adoption over the next five years may significantly improve the resolution process primarily through enhanced transparency of the blockchain-recorded history of assets and transactions. Over the next decade, a ‘smart securities world’ may emerge where bail-in could be automated and systemically important assets and liabilities resolved through distributed financial market infrastructures (dFMIs). The final scenario, with a 20-year horizon, is a fiat cryptocurrency in a reformed financial system where banking panics are eradicated. These scenarios are speculation. However, the basic technological building blocks are already available today and with improved scalability, more reliable smart contract execution and widespread adoption over time they could help to significantly improve the resolvability of TBTF institutions.

Seelye, Nancy and Paul Ziegler, ‘Impacts of COVID-19 on Banking’ (SSRN Scholarly Paper No 3645556, 9 July 2020)
Abstract: COVID-19 has had major impacts for banking, with the United States government making various efforts to shore up the financial system. These have included temporary and permanent rule changes, easing Capital requirements in an effort to spur lending and maintain bank solvency. Using publicly available data on bank holdings, we constructed tests for the changes in lending and allocation for pending loan loss. Our study finds that there has been a significant increase in loan loss reserves, yet the ratio of these reserves to total lending is not significant. This work will be extended with 2020-Q2 data when it becomes available.

Shelby, Cary Martin, ‘Profiting From Our Pain: Privileged Access to Social Impact Investing’ (2020) 109 California Law Review (forthcoming)
Abstract: Social impacting investing has become the latest trend to permeate the financial markets. With massive anticipated funding gaps for sustainable development goals, and a millennial driven thirst for doing good while doing well, this trend is likely to continue in the coming decades. This burgeoning industry is poised to experience yet an additional boost, since it provides an alternative mechanism for private actors to ‘profit from our pain’ particularly in the wake of the COVID-19 pandemic and the Black Lives Matters movement. As to be expected, the law has not sufficiently adapted to this new wave of innovation as regulatory concerns have arisen such as the extent to which impact should be measured and disclosed. Even with this emerging focus, limited attention has been paid to whether the public/private divide under the federal securities laws has contributed to these harms. This Article seeks to fill this scholarly gap by exploring the extent to which the public/private divide under the federal securities laws induces reductions to the net social benefits generated by social impact investments. While social impact investing has the highest potential for impact along the continuum of socially conscious strategies, they largely operate as exempt entities due to the need for regulatory flexibilities such as the power to invest in illiquid assets. As a result, retail investors, which encompass all members of the general public, are restricted from accessing these privately held vehicles due to investor protection concerns. This serves to exclude affected community members as investors, who are the targeted beneficiaries of these schemes, while limiting transparency which would enable the general public as well as policy makers to make assessments about the extent to which these schemes are maximizing net social welfare. This is particularly problematic given the potential for such investments to generate unaccounted for negative externalities which can occur for example when seemingly clean energy technologies inadvertently destroy surrounding environments or habitats. Solely relying on privately ordered solutions can leave costly loopholes given that they are completely voluntary and lack standardization. Innovative regulatory solutions that reconceptualize antiquated notions of publicness may best address these harms. This Article therefore concludes with a novel proposal which seeks to combine existing indicators of ‘publicness’ and ‘privateness’ while perhaps creating new measures. This could be effectuated through the creation of an entirely new series of exemptions entitled the ‘Social Impact Exemptions’ that would appear under the Securities Act of 1933 and the Investment Company Act of 1940. They would effectively recalibrate existing rules related to access and disclosure, while possibly creating new frameworks for accountability and management structure.

Shill, Gregory H, ‘Congressional Securities Trading’ (University of Iowa Legal Studies Research Paper No 2020–11, 7 April 2020)
Abstract: In March 2020, it was revealed that several U.S. Senators had cashed in their stocks after receiving intelligence on COVID-19, sparking both outrage and renewed interest in congressional insider trading. The pandemic trades exposed gaps not only in current law, but in scholarship and leading reform proposals. Congressional securities trading (CST) generates unique challenges, such as the risk of policy distortion, as well as more prosaic ones, like the management of benign trading by insiders. The current framework—which centers fiduciary regulation of theft—is poorly matched to both types. Surprisingly, rules from a related context have been overlooked.Drawing on SEC regulations that govern public company insiders, this Essay proposes a taxonomy of CST, situates the Senators’ conduct within it, and develops a novel, comprehensive prescription to manage it. Like Members of Congress, corporate insiders such as CEOs engage in securities trading despite possessing valuable inside information. The system designed to manage these trades provides a model. Specifically, Rule 10b5-1 plans (which disclose trades ex ante) and the short-swing profits rule of Section 16(b) (which disgorges illicit profits ex post) should be adapted to the congressional context. Both devices emphasize the management of legitimate trades rather than the punishment of criminal ones (which is already accomplished by other rules).Rules like these would address policy distortion and unjust self-enrichment by Members of Congress. To reduce those risks further, lawmakers should also be restricted from owning any securities other than U.S. index funds and Treasuries. None of these rules would require new legislation or regulation; all can be adopted by chamber rule. A third risk—the unjust enrichment of third parties—is often conflated with the others, but presents distinct tradeoffs and should be taken up separately. SEC rules provide useful precedent here as well.

Siciliano, Gianfranco and Marco Ventoruzzo, ‘Banning Cassandra from the Market? An Empirical Analysis of Short-Selling Bans during the Covid 19 Crisis’ (Bocconi Legal Studies Research Paper No No 3657375, 14 July 2020)
Abstract: During the recent COVID-19 pandemic crisis, stock markets around the world have witnessed an abrupt decline in security prices and an unprecedented increase in security volatility. In response to a week of financial turmoil on the main European stock markets, some market regulators in Europe, including France, Austria, Italy, Spain, Greece, and Belgium, passed temporary short-selling bans in an attempt to stop downward speculative pressures on the equity market and stabilize and maintain investors’ confidence. This paper examines the effects of these short-selling bans on market quality during the recent pandemic caused by the spread of COVID-19. Our results suggest that during the crisis, banned stocks had higher information asymmetry, lower liquidity, and lower abnormal returns compared with non-banned stocks. These findings confirm prior theoretical arguments and empirical evidence in other settings that short-selling bans are not effective in stabilizing financial markets during periods of heightened uncertainty. In contrast, they appear to undermine the policy goals market regulators intended to promote.

Slamowitz, Charles, ‘Profiteering Off Public Health Crises: The Viable Cure for Congressional Insider Trading’ (2020) 77(1) Washington and Lee Law Review Online 31–46
Abstract: This article takes an approachable, forward-thinking, and academic dive into congressional insider trading in the wake of the coronavirus (COVID-19) pandemic. After a confidential briefing by the Senate Health Committee warned of COVID-19, massive stock sell-offs by members of Congress and their spouses suddenly ensued. Some senators even publicly disparaged COVID-19’s viral effects while their own shares were being offloaded. By the time the American people were made aware of its dangers, vast investment holdings by congressional insiders had already been sold. Shockingly, it is unclear if congressional insiders trading on confidential coronavirus information are actually breaking the law. Congress members are also not required to timely disclose trades, even during pandemics, leaving the American people in the dark. This article provides the only viable remedy to congressional insider trading, crucial for governmental transparency and accountability to precipitously curb public health crises moving forward.

Smelcer, Susan, Anne M Tucker and Yusen Xia, ‘Regulating Dynamic Risk in Changing Market Conditions’ (SSRN Scholarly Paper ID 3905506, 13 August 2021)
Abstract: How successful are the SEC’s attempts to regulate dynamic risk in financial markets? Using mutual fund disclosure data from two financial shocks—the Puerto Rican debt crisis and COVID-19—we find evidence that SEC open-ended regulations, like the obligation to disclose changing market conditions, are largely successful in regulating dynamic, future risk. We find evidence of widespread and, often, detailed disclosures for new risks. But not all funds disclose new risks, and those that do vary in specificity ranging from individualized to generic disclosures. This creates perverse incentives for funds to opt-out of disclosure or downplay threats with boilerplate language when new risks are emerging. We recommend several SEC interventions to improve dynamic risk disclosures including empirically monitoring disclosures, issuing guidance when problematic variation is observed, and enforcing disclosure standards.

Stokes, Linda and Kyriacos Xenophontos, ‘Fitch Provides a Welcome Beam of Light for Cyprus Amid COVID-19 Gloom’ (2020) 35(7) Journal of International Banking Law & Regulation N82–N83
Abstract: Notes the April 2020 announcement by the Fitch rating agency of its maintenance of Cyprus’s long-term credit rating at BBB, amidst the coronavirus pandemic. Details Cyprus’s rapid response to COVID-19, its economic flexibility, its prediction of future GDP growth, and the issues it should address to increase its chance of obtaining an ‘A’ category rating.

Stuber, Walter, ‘Purchase and Sale of Private Assets by the Central Bank of Brazil during the COVID-19 Pandemic’ (2020) 35(10) Journal of International Banking Law & Regulation N120–N122
Abstract: Notes the June 2020 publication by the Board of the Central Bank of Brazil of Circular No.4.028 governing the purchase and sale of private assets by the Central Bank in the Brazilian secondary markets during the coronavirus pandemic. Details the range of assets to which the rules apply, the use of public offerings, the role of risk management, the classification of companies by their gross operating revenues, and the concentration limits.

Stuber, Walter, ‘The Effects of Coronavirus on Financial Statements in Brazil’ (2020) 35(6) Journal of International Banking Law & Regulation 56–57
Introduction: The Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários —CVM) has closely monitored the impacts of coronavirus in the world capital markets and particularly in the Brazilian market. Given the interconnectivity of the global production chain, some entities regulated by CVM may be subject to economic and financial impacts arising from the epidemic. Such impacts should be, to the possible extent reflected, in the financial statements of companies registered with CVM.

Sutcliffe, Charles, ‘The Implications of the COVID-19 Pandemic for Pensions’ in Monica Billio and Simone Varotto (eds), A New World Post COVID-19: Lessons for Business, the Finance Industry and Policy Makers (Ca’ Foscari University Press, 2020)
Abstract: COVID-19 and the lockdowns have had a big global economic effect, as well as increasing mortality. We examine the effects of COVID-19 and the resulting relaxations of pension regulations on pension schemes. Those who transfer their pension or withdraw cash from their pension pot while asset prices are depressed by COVID-19 are losers; as are members of defined benefit schemes with a deficit whose employer fails due to COVID-19. The increased mortality from covid-19 will have a minimal effect on pensions. If economies recover to pre-covid-19 levels, the long run effects on pensions should be small.

Taskinsoy, John, ‘COVID-19: Is the Great Outbreak a Sign of What the Future Has Stowed for the Human Race?’ (SSRN Scholarly Paper No ID 3597434, 10 May 2020)
Abstract: COVID-19, the novel coronavirus pandemic, placed the U.S. economy (and capitalism) on a ventilator. A new recently published study has revealed that close to 90% of patients who needed ventilators to breathe did not make it. Of course this is a metaphoric inference, but valuable lessons provided by coronavirus crisis should not be ignored as the previous signs were in the past. The Fed must realize that ‘creating money out of thin air’ (i.e. credit expansion) is nothing but “‘legalized counterfeiting’ which will only foster even greater pandemics and financial crises in the near future. Since the Fed was created in 1913, financial and economic crises have become more damaging, longer lasting, and costlier. Every time a high-magnitude crisis strikes (financial, economic, or pandemic), to calm people and restore confidence, governments of advance nations and their high profile central banks (Federal Reserve, European Central Bank, Bank of Japan, and Bank of England) rush to enact unprecedented economic relief/stimulus packages which got larger and larger over the years but sources of systemic crises have remained unresolved since the stock market crash of 1929 and the subsequent Great Depression. In today’s economy, $5 trillion or $10 trillion virus relief package is mindboggling, but will it be enough to prevent a looming recession? A better question to ask is, will the Fed’s infinite money creation out of thin air send American capitalism on a ventilator to the burial ground? In the near future (by 2050), global warming induced climate changes and the resultant catastrophes will make the coronavirus pandemic trivial. Unfortunately, one thing that never changes, in the long-run great financial crises and pandemics kill deprived people in developing and poorest countries.

Tesche, Tobias, ‘The European Union’s Response to the Coronavirus Emergency: An Early Assessment’ (LSE ‘Europe in Question’ Discussion Paper Series No 157, 11 June 2020)
Abstract: This article provides an assessment of the EU institutions’ response to the coronavirus pandemic. It contends that it followed the new intergovernmental tendency to empower de novo bodies like the European Stability Mechanism, the European Investment Bank and the European Central Bank. The European Central Bank’s early and unconstrained action structured European politics. Its pandemic emergency purchase programme ensured that euro area member states were able to maintain market access and lowered the financial attractiveness of the subsequently created instruments to tackle the corona crisis. The European Commission was relegated to the role of ‘cheerleader of European solidarity’. It partially redeemed itself by creating a new temporary loan-based instrument to support national short-term work schemes and by proposing a large-scale recovery instrument termed ‘Next Generation EU’.

Theodosopoulou, Aikaterini, ‘ESM Pandemic Crisis Support: Can It Help?’ (2020) 35(8) Butterworths Journal of International Banking & Financial Law 573–574
Abstract: Reports on the pandemic crisis support instrument established by the European Stability Mechanism (ESM) to provide financial assistance for healthcare, cure and prevention both for Eurozone members and for other EU Member States.

Tjio, Hans, ‘2020: Securities and Financial Services Regulation’ (SSRN Scholarly Paper ID 3782136, 9 February 2021)
Abstract: COVID-19 clearly dominated many of the pressing issues in the world in 2020 and necessitated changes such as the suspension of wrongful trading provisions to help financially distressed firms and the restriction on share buybacks in the case of the CARES Act in the US for government bail-outs and by the MAS for financial institutions given capital adequacy relief in Singapore. It also brought greater focus back on the real economy as opposed to the over-financialized one that was described in the introduction to this chapter in the previous Annual Review. One positive thing to come out of a pandemic is that it may reduce the inequalities seen in the world since the 1990s, in particular, without the even greater upheaval that has been thought necessary to level society.

Tjoanda, Merry, ‘The Outbreak of Covid-19 as an Overmacht Claim in Credit Agreements’ (2021) 15(1) Fiat Justisia: Jurnal Ilmu Hukum 75–92
Jurisdiction: Indonesia
Abstract: This research aims to determine and analyze the law consequences of overmacht in credit agreements due to the Covid-19 Pandemic and as legal remedies for settlement of the credit agreement due to the Covid-19 Pandemic. This research is socio-legal research, a combination research method between doctrinal law research methods and empirical legal research methods. This research was conducted in banking institutions and financing institutions in Ambon City, namely at Bank Mandiri Ambon Branch Office, BCA Ambon Branch Office, Bank Artha Graha Ambon Branch Office, and BFI Limited Company Ambon Branch Office. The types of research data are primary data and secondary data, obtained through literature study and interviews. Based on the results of the research, the Covid-19 Pandemic is a non-natural disaster, so it is categorized as a relative overmacht, so the result of the comparative overmacht law in the credit agreement due to the Covid-19 Pandemic in Ambon City has not changed the risk burden in the sense that the Debtor still fulfills their achievements after the outbreak of Covid - 19 Pandemic is over. The legal effort that can be taken to settle credit agreements due to Covid-19 Pandemic in Ambon City is through credit restructuring in the form of lowering interest rates, extending the period, reducing principal arrears, and reducing interest arrears as determined by the government to be implemented by the bank or financing institutions with debtors.

Truong, Quang-Thai et al, ‘COVID-19 in Vietnam: What Happened in the Stock Market?’ (SSRN Scholarly Paper No ID 3633754, 23 June 2020)
Abstract: The purpose of this paper is to investigate the performance of the stock market during the outbreak of the novel Coronavirus (COVID-19) in Vietnam- a frontier country that successfully tackles the outbreak of this pandemic. Employing data from 11 different industries and more than 700 firms from two main stock exchanges from January 23, 2020 (the first case reported in Vietnam), results suggest that COVID-19 exerts heterogeneous impacts on different industries. Moreover, when focusing on firm-level, results depicts that firms with a better financial background (leverage, liquidity, profitability, and cash holdings) have better stock performance.

de Villiers, Charl, Dannielle Cerbone and Wayne Van Zijl, ‘The South African Government’s Response to COVID-19’ (2021) Journal of Public Budgeting, Accounting & Financial Management (forthcoming)
Abstract: Purpose: This paper provides a critical analysis of the South African government’s response to the COVID-19 crisis and its effect on state finances and budgets. Design/methodology/approach: The paper critically analyses publicly available data. Findings: The South African government’s initial health response was praised by the international community, given the early lockdown and extensive testing regime. The lockdown devastated an already precarious economy, which led to negative social consequences. The initial lockdown delayed the epidemic, but subsequently, the infection rate climbed, requiring new restrictions, suggesting further economic disruption. Government has had to increase its borrowings, while the future tax take is forecast to be significantly reduced, a combination which will lead to a severely constrained public purse for many years to come. This will limit the Government’s ability to address the basic social needs that predated the COVID-19 crisis. Originality: This is one of the first academic papers to critically assess the effect of the South African government’s response to the COVID-19 crisis on state finances and budgets.

Wai, Kok Chee and Tan Kai Liang, ‘Singapore: COVID-19 Pandemic - Additional Support’ (2020) 35(9) Journal of International Banking Law & Regulation N112–N115
Abstract: Highlights the April 2020 announcement by the Monetary Authority of Singapore of additional support for those experiencing financial problems due to the coronavirus pandemic. Details key features of: measures to ease cashflow problems, including the deferred repayment of commercial loans and mortgage equity withdrawal loans; debt reduction measures involving removal of the total debt servicing ratio; and improved access to banking services.

Walt, Johan van der, ‘Forensic Practitioners Will Play Key Role in Recovery of South African Economy Post COVID-19’ (2020) 20(6) Without Prejudice 35–36
Abstract: With numerous sectors experiencing financial distress, and companies and individuals facing the increased likelihood of insolvency as a result of the economic disruption caused by COVID-19, forensic practitioners will play a key role in supporting South Africa’s economic recovery.

Walters, Robert, ‘Close out Netting Provisions: Their Current Value in a Time of International Uncertainty!’ (2020) 31(10) International Company and Commercial Law Review 564–595
Abstract: The world is facing significant geopolitical and economic challenges. This article explores the current value of close-out netting provisions as a result of the recent coronavirus outbreak. It examines the netting provisions of Australia, European Union, United Kingdom and the United States. The article makes the argument that as states increasingly turn inward, upholding the current international legal framework will be more important.

Warna-kula-suriya, Sanjev and Christopher Anthony Sullivan, ‘Can the ECB Keep European ABS Markets Moving during the COVID-19 Crisis?’ (2020) 35(6) Butterworths Journal of International Banking & Financial Law 406–407
Abstract: Discusses the role of asset-backed securitisations (ABS) in the European Central Bank’s (ECB) programme to help refinance EU banks and support their liquidity in the coronavirus pandemic.

Williams, Bryan, ‘Identification of Potential COVID-Related Insider Trading by US Representatives Based on Financial Disclosures’ (SSRN Scholarly Paper ID 3807508, 18 March 2021)
Abstract: Just over a year after the initial COVID-19 shutdown, the United States finds itself as one of the worst-hit nations in the world in terms of COVID infections and deaths per capita. While the cost of delayed action in addressing the pandemic can be debated, one thing that cannot be is when the US Congress learned of the seriousness of the virus. While our previous paper focused on the US Senate, this one focuses on the lower chamber of Congress, the US House of Representatives. Like their senate counterparts, representatives learned of the potential impact of COVID-19 on the US in a closed door meeting in late January, nearly a month-and-a-half before the initial shutdown. As in the previous paper, we sought to find signals of insider trading US Representatives based on this non-public information. Much like the upper chamber, the public also has access to stock transactions of US Representatives thanks to the United States House of Representatives Financial Disclosures database. Using the original source data as well as Quiver Quantitative’s cleaned version, Novatero Investments ran three analyses on US Representative stock transactions. These analyses looking for signs of insider trading centered around the late-January closed-door COVID-19 briefing: alterations in transactional volume, significant changes in strategy relative to the US market, and a market timing advantage relative to two baselines. Unlike the clear-cut findings from the Senate analyses, we found 15 representatives whose transaction activity and patterns range from ‘doubtful’ to ‘strong likelihood’ of insider trading, reflective of the myriad of results we’ve obtained from this data. While there are strong suggestions of insider trading within these results, the data provided can only go so far in terms of solid evidence, and we hope to see a deeper analysis and investigation by those who have access to a more-complete picture of these transactions.

Wilmarth, Arthur E, ‘The Pandemic Crisis Shows That the World Remains Trapped in a “Global Doom Loop” of Financial Instability, Rising Debt Levels, and Escalating Bailouts’ (GWU Legal Studies Research Paper No 2021–34, August 2021)
Abstract: In January 2020, I completed a book (Taming the Megabanks: Why We Need a New Glass-Steagall Act) analyzing the financial crises that precipitated the Great Depression of the 1930s and the recent Great Recession. My book argued that the world’s financial system was caught in a ‘global doom loop’ at the beginning of 2020. Bailouts and economic stimulus programs during and after the global financial crisis of 2007-09 (GFC) imposed heavy debt burdens on most governments, and leading central banks were carrying bloated balance sheets. The rescues arranged by governments and central banks during the GFC created a widely-shared expectation that they would continue to intervene to ensure the stability of major financial institutions and important financial markets. That expectation encouraged speculative risk-taking by financial institutions and investors as well as dangerous growth in private and public debts. I warned that the global doom loop was planting the seeds for the ‘next’ financial crisis, which could overwhelm the already strained resources of governments and central banks.The ‘next’ global crisis began only two months later, in March 2020. The rapid spread of the Covid-19 pandemic caused governments in most developed countries to shut down large sectors of their economies and impose social distancing mandates. Many thousands of businesses closed, setting off a downward spiral in economic activity that paralyzed global financial markets. Investors, businesses, and financial institutions ‘scrambled for cash’ and engaged in panicked ‘fire sales’ of financial assets. Governments and central banks in the U.S. and other advanced economies adopted fiscal stimulus measures and financial rescue programs with a size, speed, and scope that far surpassed the emergency actions taken during the GFC.The pandemic financial crisis and the extraordinary responses of governments and central banks demonstrate that policymakers have not addressed the root causes of the GFC. Major financial institutions and financial markets remain highly unstable. They continue to underwrite rapidly rising levels of private and public debts based on their shared expectation of future government bailouts. Governments and central banks have expanded their ‘safety nets’ far beyond banks and now protect the entire financial system, including short-term wholesale credit markets, systemically important nonbanks, and the corporate bond market. As a practical matter, governments and central banks have ‘bankified’ the financial system, thereby undermining market discipline, stimulating dangerous asset bubbles, and increasing social inequality.Our financial system must be reformed so that it no longer promotes unsustainable booms, fueled by reckless growth in private debts, followed by destructive busts that require massive bailouts and huge increases in government debts. My recent book provides a blueprint for needed reforms, including a new Glass-Steagall Act. A new Glass-Steagall Act would break up financial giants by separating banks from the capital markets and by prohibiting nonbanks from financing their operations with functional substitutes for bank deposits. A new Glass-Steagall Act would establish a financial system that is more stable, more competitive, and more responsive to the needs of consumers, communities, and business firms. Properly implemented, a new Glass-Steagall Act would provide the most direct and practical way to break the global doom loop and end the toxic boom-and-bust cycles of the past quarter century.

Yeoh, Peter, ‘COVID-19 Legal-Economic Implications of a Pandemic’ (2020) 41(3) Business Law Review 74–84
Abstract: Assesses the impact of the COVID-19 pandemic on global and national economies, focusing on the US and the UK. Looks at legal implications, including force majeure clauses in commercial contracts, the doctrine of frustration, material adverse change clauses, and companies’ reporting obligations.

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