Howell E. Jackson

James S. Reid, Jr. Professor of Law

Biography

Howell Jackson is the James S. Reid, Jr., Professor of Law at Harvard Law School. His research interests include financial regulation, consumer protection, international finance, and federal budget policy.  Professor Jackson is currently a Visiting Scholar at the Consumer Financial Protection Bureau.  He has previously served as a consultant to the United States Treasury Department, the United Nations Development Program, and the World Bank/International Monetary Fund, and frequently consults with government agencies and congressional committees on issues related to financial regulation.  Professor Jackson is the chairman of the board of College Retirement Equities Fund (CREF) and affiliated TIAA-CREF investment companies, the editor of the SSRN Regulation of Financial Institutions eJournal, and a senior editor for Cambridge University Press Series on International Corporate Law and Financial Regulation. Professor Jackson is also a director of the D2D Fund, a non-profit dedicated to strengthening financial opportunities of low and moderate income consumers.  He is co-author of Financial Regulation: Law and Policy (forthcoming Foundation Press 2015); Analytical Methods for Lawyers (Foundation Press 2003; Second Edition 2011), Regulation of Financial Institutions (West 1999); co-editor of Fiscal Challenges: An Inter-Disciplinary Approach to Budget Policy (Cambridge University Press 2008); and author of numerous scholarly articles. At Harvard University, Professor Jackson has served as Senior Advisor to the President and Acting Dean of Harvard Law School.  Before joining the Harvard Law School faculty in 1989, Professor Jackson was a law clerk for Associate Justice Thurgood Marshall and practiced law in Washington, D.C. Professor Jackson received J.D. and M.B.A. degrees from Harvard University in 1982 and a B.A. from Brown University in 1976.

Areas of Interest

Michael S. Barr, Howell E. Jackson & Margaret E. Tahyar, Financial Regulation: Law and Policy (Found. Press 2016).
Categories:
Banking & Finance
,
Corporate Law & Securities
,
Consumer Finance
,
Government & Politics
Sub-Categories:
Banking
,
Finance
,
Financial Markets & Institutions
,
Financial Reform
,
Investment Products
,
Fiduciary Law
,
Commercial Law
,
Consumer Protection Law
,
Business Organizations
,
Corporate Governance
,
Congress & Legislation
,
Administrative Law & Agencies
Type: Book
Howell E. Jackson & Jeffery Y. Zhang, Private and Public Enforcement in Securities Regulation, in The Oxford Handbook of Corporate Law and Governance (Jeffrey Gordon & Wolf-Georg Ringe eds., 2015).
Categories:
Corporate Law & Securities
Sub-Categories:
Securities Law & Regulation
Type: Book
Abstract
This chapter examines the impact of private and public enforcement of securities regulation on the development of capital markets. After a review of the literature, it considers empirical findings related to private and public enforcement as measured by formal indices and resources, with particular emphasis on the link between enforcement intensity and technical measures of financial market performance. It then analyses the impact of cross-border flows of capital, valuation effects, and cross-listing decisions by corporate issuers before turning to a discussion of whether countries that dedicate more resources to regulatory reform behave differently in some areas of market activities. It also explores the enforcement of banking regulation and its relationship to financial stability and concludes by focusing on direct and indirect, resource-based evidence on the efficacy of the US Securities and Exchange Commission’s enforcement actions.
Howell E. Jackson, Substituted Compliance: The Emergence, Challenges, and Evolutions of a New Regulatory Paradigm, 1 J. Fin. Reg. 169 (2015).
Categories:
Banking & Finance
,
International, Foreign & Comparative Law
,
Government & Politics
Sub-Categories:
Banking
,
Finance
,
Financial Markets & Institutions
,
Financial Reform
,
Comparative Law
,
Foreign Law
,
European Law
,
International Monetary Systems
Type: Article
Abstract
Over the past few decades, the US Securities and Exchange Commission experimented with a number of different approaches to relaxing Securities and Exchange Commission (SEC) rules to facilitate entry of foreign firms into US capital markets. Initially, the SEC favoured an approach I denominate as modified national treatment, under which foreign firms were allowed exemption from a limited number of specific US requirements that were likely to conflict with, or be redundant with respect to, regulatory requirements in their home jurisdictions. In general, these exemptions were available regardless of the quality of home country oversight. Sometimes those exemptions were available only for transactions with large institutional investors located in the USA. Starting in 2007, the Commission began to comtemplate more far-reaching acceptance of foreign regulatory oversight, most prominently in an approach that came to be known as substituted compliance. A hallmark of substituted compliance was that it was to be selective, and thus available only to those jurisdictions that the Commission determined to be substantially comparable to US regulatory oversight. In the face of the Global Financial Crisis in 2008, the Commission backed away from its initial experiment with substituted compliance, but the exercise still offers an interesting content in which to consider the manner in which the Commission might have determined the comparability of foreign regulatory systems. This essay explores the various analytical options available for making such supervisory assessments. It then concludes with some preliminary thoughts on what might be called ‘second-generation’ substituted compliance, which the SEC and the Commodity Futures Trading Commission have begun to employ in the past few years to limit the extraterritorial application of certain provisions of the Dodd–Frank Act.
Howell Jackson & Stephanie Massman, The Resolution of Distressed Financial Conglomerates, 3 RSF: Russell Sage Found. J. Soc. Sci. 48 (2017).
Categories:
Banking & Finance
,
Corporate Law & Securities
Sub-Categories:
Financial Markets & Institutions
,
Corporate Bankruptcy & Reorganization
Type: Article
Abstract
One of the most elegant legal innovations to emerge from the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 is the FDIC’s single-point-of-entry (SPOE) initiative, whereby regulatory authorities will be in a position to resolve the failure of large financial conglomerates (corporate groups with regulated financial entities as subsidiaries) by seizing a top-tier holding company, downstreaming holding-company resources to distressed subsidiaries, wiping out holding-company shareholders while simultaneously imposing additional losses on holding-company creditors, and allowing the government to resolve the entire group without disrupting the business operations of operating subsidiaries (even those operating overseas) or risking systemic consequences for the broader economy. Although there is much to admire in the creativity underlying SPOE, the approach’s design also raises a host of novel and challenging questions of implementation. This chapter explores a number of these questions and elaborates upon the following points. First, in contrast to traditional approaches to resolving financial conglomerates, SPOE is premised on the continued support of all material operating subsidiaries, thereby potentially extending the scope of government support and thus posing the possibility of mission creep and expanded moral hazard. Second, SPOE contemplates the automatic downstreaming of resources to operating subsidiaries in distress, but effecting that support is likely to be more difficult than commonly understood. If too much support is positioned in advance, there may be inadequate reserves at the top level to support a single subsidiary that gets into an unexpectedly large amount of trouble. Alternatively, if too many reserves are retained at the holding-company level, commitments of subsidiary support may not be credible (especially to foreign authorities) and it may become difficult legally and practically to deploy those resources in times of distress. SPOE is most easy to envision operating in conjunction with the FDIC’s expanded authority under its Orderly Liquidation Authority (OLA) established under Title II of the Dodd-Frank Act. However, the act’s preferred regime for resolving failed financial conglomerates is the U.S. Bankruptcy Code (where Lehman was resolved) and not OLA. Several complexities could arise were a bankruptcy court today called upon to implement an SPOE resolution plan. While many legal experts are working on legislative proposals to amend the Bankruptcy Code to facilitate SPOE resolutions, there are a number of legal levers that federal authorities could deploy under current law to increase the likelihood that the SPOE strategy could be effected through traditional bankruptcy procedures. The task would be challenging and would require considerable advanced planning. But there are substantial benefits to be had from taking steps now to increase the likelihood that the bankruptcy option represents a viable and credible alternative for effecting SPOE transactions without resort to OLA and Title II of the Dodd-Frank Act.
Michael S. Barr, Howell E. Jackson & Margaret E. Tahyar, Finance Today, in Financial Regulation: Law and Policy ch. 1.1 (Found. Press, May 2016).
Categories:
Banking & Finance
Sub-Categories:
Finance
Type: Article
Abstract
Financial Regulation: Law and Policy is a new textbook that aims to teach students about today's financial sector with a modular, accessible, balanced, practical, and ready-to-use approach. Our goal is to give students the tools to understand how American history and political economy have shaped the regulatory perimeter, how different policy choices have been made at different times across different parts of the financial sector, and how these choices matter a great deal in shaping not only financial stability, but also how the financial sector supports the economy and society. The textbook includes chapters on Insured Depository Institutions, Insurance, Securities Firms and Capital Markets, Consumer Protection and the CFPB, Financial Conglomerates, Payment Systems, Corporate Governance, Lender of Last Resort and Resolution, Mutual Funds and Other Investment Vehicles, Derivatives and Rate Markets, and Shadow Banking. The textbook comes with a teacher's manual that explores key themes, suggests a range of teaching approaches, answers questions posed in the textbook, and includes class slides for each chapter. This download contains the summary table of contents and Chapter 1.1: Finance Today.
Allison K. Hoffman & Howell E. Jackson, Retiree Out-of-Pocket Healthcare Spending: A Study of Consumer Expectations and Policy Implications, 39 Am. J.L. & Med. 62 (2013).
Categories:
Disciplinary Perspectives & Law
,
Health Care
,
Labor & Employment
Sub-Categories:
Empirical Legal Studies
,
Health Law & Policy
,
Elder Law
,
Retirement Benefits & Social Security
Type: Article
Abstract
Even though most American retirees benefit from Medicare coverage, a mounting body of research predicts that many will face large and increasing out-of-pocket expenditures for healthcare costs in retirement and that many already struggle to finance these costs. It is unclear, however, whether the general population understands the likely magnitude of these out-of-pocket expenditures well enough to plan for them effectively. This study is the first comprehensive examination of Americans’ expectations regarding their out-of-pocket spending on healthcare in retirement. We surveyed over 1700 near retirees and retirees to assess their expectations regarding their own spending and then compared their responses to experts’ estimates. Our main findings are twofold. First, overall expectations of out-of-pocket spending are mixed. While a significant proportion of respondents estimated out-of-pocket costs in retirement at or above expert estimates of what the typical retiree will spend, a disproportionate number estimated their future spending substantially below what experts view as likely. Estimates by members of some demographic subgroups, including women and younger respondents, deviated relatively further from the experts’ estimates. Second, respondents consistently misjudged spending uncertainty. In particular, respondents significantly underestimated how much individual health experience and changes in government policy can affect individual out-of-pocket spending. We discuss possible policy responses, including efforts to improve financial planning and ways to reduce unanticipated financial risk through reform of health insurance regulation.
John C. Campbell, Howell E. Jackson, Brigitte Madrian & Peter Tufano, Consumer Financial Protection, 25 J. Econ. Persp. 91 (2011).
Categories:
Consumer Finance
,
Banking & Finance
Sub-Categories:
Banking
,
Finance
,
Financial Markets & Institutions
,
Financial Reform
,
Investment Products
,
Fiduciary Law
,
Consumer Protection Law
Type: Article
Abstract
The recent financial crisis has led many to question how well businesses deliver services and how well regulatory institutions address problems in consumer financial markets. This paper discusses consumer financial regulation, emphasizing the full range of arguments for regulation that derive from market failure and from limited consumer rationality in financial decision making. We present three case studies—of mortgage markets, payday lending, and financing retirement consumption—to illustrate the need for, and limits of, regulation. We argue that if regulation is to be beneficial, it must be tailored to specific problems and must be accompanied by research to measure the effectiveness of regulatory interventions.
John Y. Campbell, Howell E. Jackson, Brigitte C. Madrian & Peter Tufano, Making Financial Markets Work For Consumers, 89 Harv. Bus. Rev. 47 (2011).
Categories:
Consumer Finance
,
Banking & Finance
Sub-Categories:
Finance
,
Financial Markets & Institutions
,
Financial Reform
,
Consumer Protection Law
Type: Article
Abstract
The authors offer advice to the head of the new Consumer Financial Protection Bureau. They review the principles that provide justification for regulation and offer guidance on how to approach regulation and how to manage the new bureau. They advocate for a principles-based, data-driven approach to regulation.
Howell E. Jackson, Loan-Level Disclosure in Securitization Transactions: A Problem with Three Dimensions, in Moving Forward: The Future of Consumer Credit and Mortgage Finance 189 (Nicolas P. Retsinas & Eric S. Belsky eds., Brookings Inst. Press 2011).
Categories:
Banking & Finance
,
Corporate Law & Securities
,
Consumer Finance
Sub-Categories:
Banking
,
Commercial Law
,
Contracts
,
Finance
,
Financial Markets & Institutions
,
Secured Transactions
,
Consumer Protection Law
,
Securities Law & Regulation
Type: Book
John Campbell, Howell E. Jackson, Brigitte C. Madrian & Peter Tufano, The Regulation of Consumer Financial Products: An Introductory Essay with a Case Study on Payday Lending, in Moving Forward: The Future of Consumer Credit and Mortgage Finance 206 (Nicolas P. Retsinas & Eric S. Belsky eds., Brookings Inst. Press 2011).
Categories:
Banking & Finance
,
Consumer Finance
Sub-Categories:
Banking
,
Finance
,
Financial Markets & Institutions
,
Financial Reform
,
Consumer Protection Law
,
Consumer Contracts
Type: Book
John Y. Campbell, Howell E. Jackson, Brigitte C. Madrian & Peter Tufano, The Regulation of Consumer Financial Products: An Introductory Essay with Four Case Studies (HKS Faculty Research Working Paper Series RWP10-040, John F. Kennedy Sch. Gov't, Harv. Univ., Sept. 2010).
Categories:
Consumer Finance
,
Banking & Finance
Sub-Categories:
Finance
,
Financial Markets & Institutions
,
Financial Reform
,
Consumer Protection Law
Type: Article
Abstract
The recent financial crisis has led many to question how well businesses deliver consumer financial services and how well regulatory institutions address problems in consumer financial markets. In response, the Obama administration proposed a new agency to oversee consumer financial services, and the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act embraced the Administration’s proposal by creating the Bureau of Consumer Financial Protection. Other regulatory reforms have been advanced, and in some cases adopted, in recent years, at both the federal and state level. In this paper, we provide an overview of consumer financial markets, detailing the purposes they serve, the extent to which they suffer from market failures or other deficiencies, and the structure of our current system of regulation. To illustrate our analytical framework, we present case studies on retirement savings, residential mortgages, payday lending, and mutual funds. We conclude with a series of observations on the limits of government intervention, suggestions about how to measure whether government intervention is successful, and potentially fruitful lines of future research and data collection.
Howell E. Jackson, Louis Kaplow, Steven M. Shavell, W. Kip Viscusi & David Cope, Analytical Methods for Lawyers (Found. Press 2nd ed. 2011).
Categories:
Legal Profession
,
Disciplinary Perspectives & Law
Sub-Categories:
Legal Theory & Philosophy
,
Legal Education
Type: Book
Abstract
This law school casebook was developed by a team of professors at Harvard Law School to introduce students with little or no quantitative background to the basic analytical techniques that attorneys need to master to represent their clients effectively. This casebook presents clear explanations of decision analysis, games and information, contracting, accounting, finance, microeconomics, economic analysis of the law, fundamentals of statistics, and multiple regression analysis. References and examples have been thoroughly updated for this 2d edition, and exposition of a number of key topics has been reworked to reflect insights gained from teaching these topics using the 1st edition to many hundreds of Harvard Law students over the past decade.
Margaret E. Tahyar, Jaap Willeumier, Eric J. Pan, Howell E. Jackson & Eilis Ferran, Final Report of the Securities Law Subcommittee of the Task Force on Extraterritorial Jurisdiction of the International Bar Association (July 1, 2008).
Categories:
Banking & Finance
,
International, Foreign & Comparative Law
Sub-Categories:
Banking
,
Finance
,
Financial Markets & Institutions
,
Financial Reform
,
Comparative Law
,
Foreign Law
,
European Law
,
Global Lawyering
Type: Article
Abstract
The International Bar Association's Securities Law Subcommittee of the Task Force on Extraterritorial Jurisdiction, comprised of a panel of academics, practitioners, senior in-house counsel at financial institutions and former regulators, has produced this report examining the need for reform of the regulation of the global securities markets. The report reviews approaches to addressing problems such as mutual recognition, regulatory convergence and disparities in enforcement intensity and makes a series of recommendations. The Subcommittee urges reform of domestic regulatory systems with a view towards its international impact and argues that such reform should be an urgent priority for legislative and regulatory bodies in major financial centers. (Full list of Subcommittee members located in the text of the report.)
Fiscal Challenges: An Interdisciplinary Approach to Budget Policy (Elizabeth Garrett, Elizabeth Graddy & Howell E. Jackson eds., Cambridge Univ. Press 2008).
Categories:
Banking & Finance
,
Government & Politics
Sub-Categories:
Banking
,
Finance
,
Financial Markets & Institutions
,
Financial Reform
,
Congress & Legislation
,
Administrative Law & Agencies
,
Government Accountability
,
Government Transparency
,
Public Law
,
Separation of Powers
Type: Book
Abstract
An Interdisciplinary Approach to Budget Policy Elizabeth Garrett, Elizabeth A. Graddy, Howell E. Jackson. 6 Counting the Ways The Structure of Federal Spending Howell E. Jackson In the realm of budget policy, numbers are important. ... and suggestions from participants at the February 2006 Conference on Fiscal Challenges: An Interdisciplinary Approach to Budget Policy held at USC Law School and ...
Howell E. Jackson & Eric Pan, Regulatory Competition in International Securities Markets: Evidence from Europe - Part II, 3 Va. L. & Bus. Rev. 207 (2008).
Categories:
Banking & Finance
,
Government & Politics
,
International, Foreign & Comparative Law
Sub-Categories:
Banking
,
Finance
,
Financial Markets & Institutions
,
Financial Reform
,
Administrative Law & Agencies
,
Congress & Legislation
,
Public Law
,
European Law
,
Comparative Law
,
Foreign Law
Type: Article
Abstract
This article presents the second installment of an empirical investigation into regulatory competition in international securities markets. It contributes to the current debate about competitiveness of U.S. capital markets by offering an account of transatlantic capital raising practices at the height of technology boom of the 1990s and before the passage of the Sarbanes-Oxley Act of 2002 and the corporate scandals that precipitated the Act. This article provides evidence that European issuers in the late 1990s were already turning away from U.S. public capital markets. While regulatory considerations appear to have played a role in that trend, even more important were the growing importance of private means of access of U.S. capital, the increased off-shore presence of U.S. institutional investors, and the relatively unsatisfactory trading performance of many foreign issuers that had gone to the trouble of obtaining U.S. public listings early in the 1990s. The picture of transatlantic capital raising presented in our survey suggests that the recent decline in competitiveness of U.S. capital markets may well be more a product of long-standing trends in global financial markets than a response to the Sarbanes-Oxley Act or other requirements of federal securities laws. We have supplemented our original analysis with a post-script from the vantage point of 2008 to draw connections between our findings and those of recent academic literature.
Howell E. Jackson, A System of Selective Substitute Compliance, 48 Harv. Int'l. L. J. 105 (2007).
Categories:
Banking & Finance
,
International, Foreign & Comparative Law
,
Corporate Law & Securities
Sub-Categories:
Banking
,
Finance
,
Financial Markets & Institutions
,
Financial Reform
,
Securities Law & Regulation
,
Foreign Law
,
European Law
,
Comparative Law
Type: Article
Stavros Gadinis & Howell E. Jackson, Markets as Regulators: A Survey, 80 S. Cal. L. Rev. 1239 (2007).
Categories:
Corporate Law & Securities
Sub-Categories:
Securities Law & Regulation
Type: Article
Abstract
Stock exchanges around the world have recently discarded their traditional mutual membership structure in favor of a for-profit corporate format. This development increased fears of conflicts of interest, as for-profit exchanges are more sensitive to pressures from their constituents and more likely to abuse their regulatory powers. In this Article, we explore the allocation of regulatory responsibilities to market infrastructure institutions, administrative agencies, and central government entities in the eight most influential jurisdictions for securities regulation in the world. Examining how different jurisdictions answer this question is particularly pressing given the December 2006 transatlantic stock exchange merger activity. After discussing the role of self-regulatory organizations in the oversight of modern stock exchanges, we report the results of a survey of the allocation of regulatory powers in a sample of eight key jurisdictions. In that survey, we examine the allocation (of such powers at three levels: rulemaking, monitoring of compliance with these rules, and enforcement of rules violations. Based on our findings, we categorize these jurisdictions in three distinct models of allocation of regulatory powers: a Government-led Model that preserves significant authority for central government control over securities markets regulation, albeit with a relatively limited enforcement apparatus (France, Get-many, and Japan); a Flexibility Model that grants significant leeway to market participants in performing their regulatory obligations, but relies on government agencies to set general policies and maintain some enforcement capacity (United Kingdom, Hong Kong, and Australia); and a Cooperation Model that assigns a broad range of power to market participants in almost all aspects of securities regulation, but also maintains strong and overlapping oversight of market activity through well-endowed governmental agencies with more robust enforcement traditions (United States and Canada).
Howell E. Jackson & Stacy A. Anderson, Can States Tax National Banks to Educate Consumers About Predatory Lending Practices?, 30 Harv. J. L. & Pub. Pol'y. 831 (2007).
Categories:
Banking & Finance
,
Government & Politics
,
Taxation
Sub-Categories:
Banking
,
State & Local Government
,
Taxation - State & Local
Type: Article
Abstract
Over the past quarter century, consumer lending markets in the United States have become increasingly national in scope with large national banks and other federally chartered institutions playing an ever important role in many sectors, including credit card lending and home mortgages. At the same time, a series of court decisions have ruled that a wide range of state laws regulating credit card abuses and predatory mortgage lending practices are preempted at least as applied to national banks and other federally chartered institutions. Given the dominant role of federal institutions in our country’s lending markets, these rulings have narrowed the capacity of states to police local lending transactions. As an alternative to direct regulation, the California Assembly recently considered legislation designed to improve consumer understanding of financial transactions through educational efforts to be financed by a new state tax on income from certain problematic loans made to California residents by financial institutions, including national banks and other federally chartered institutions. In this Article, we consider whether a tax of the sort proposed in California could survive a preemption challenge under recent court rulings as well as other potential constitutional attacks. While the States have quite limited powers to regulate federally chartered financial institutions, Congress in 12 U.S.C. § 548 explicitly authorizes states to tax national banks. We explore the scope of state taxing authority that § 548 and the relationship between that authority and recent preemption rulings After reviewing a range of legal precedents, we conclude that a state tax of the sort considered in California—which impose modest levies on federally chartered entities but do not prevent these from engaging in otherwise authorized activities— should qualify as a legitimate exercise of state taxing powers under 12 U.S.C. § 548 and also should withstand scrutiny under the Due Process and Commerce Clauses to the extent the tax is imposed on out-of-state banks.
Howell E. Jackson & Laurie Burlingame, Kickbacks or Compensation: The Case of Yield Spread Premiums, 12 Stan. J.L. Bus. & Fin. 289 (2007).
Categories:
Banking & Finance
,
Disciplinary Perspectives & Law
,
Property Law
,
Government & Politics
Sub-Categories:
Banking
,
Finance
,
Financial Markets & Institutions
,
Financial Reform
,
Empirical Legal Studies
,
Administrative Law & Agencies
,
Congress & Legislation
,
Real Estate
Type: Article
Abstract
This article addresses whether yield spread premiums are harmful to consumers and, if so, how the practice might be regulated. Yield spread premiums are payments made to mortgage brokers by lending institutions based on the rate of interest charged on a borrower's loan, with higher interest rates producing higher yield spread premiums payments. While the legality and merits of these payments have been hotly debated over the past decade - in federal courts, before Congress, and elsewhere - little academic writing has seriously grappled with the fundamental questions this paper addresses. After describing the regulatory framework for yield spread premiums, the article reviews the unresolved empirical questions underlying the policy and legal debates over these payments. The article then presents an empirical study of approximately 3,000 mortgage financings of a major lending institution, the results of which suggest that yield spread premiums allow mortgage brokers to extract materially higher payments from consumers than in transactions without such payments. Contrary to claims of industry representatives, the study suggests that consumers fail to fully recoup the cost of these payments. Our best estimate is that consumers get less than thirty-five cents of value for every dollar of yield spread premiums. The study also provides evidence that the payment of yield spread premiums may allow mortgage brokers to engage in price discrimination among borrowers, with the least sophisticated borrowers being particularly susceptible to abusive pricing practices. The article concludes with a brief discussion of the implications of these results for the regulation of yield spread premiums.
Howell E. Jackson, Variation in the Intensity of Financial Regulation: Preliminary Evidence and Potential Implications, 24 Yale J. on Reg. 253 (2007).
Categories:
Banking & Finance
,
Disciplinary Perspectives & Law
,
International, Foreign & Comparative Law
,
Government & Politics
,
Corporate Law & Securities
Sub-Categories:
Banking
,
Finance
,
Financial Markets & Institutions
,
Financial Reform
,
Securities Law & Regulation
,
Empirical Legal Studies
,
Administrative Law & Agencies
,
Congress & Legislation
Type: Article
Abstract
This article begins with a discussion of the considerable difficulties of conducting a theoretically complete analysis of the costs and benefits of financial regulation, as well as the problems associated with making international comparisons between observed levels of the intensity of financial regulation. Notwithstanding these difficulties, the author next presents preliminary data about the direct regulatory costs of financial regulation in the US and offer some tentative international comparisons. Compared to at least the UK and Germany, the intensity of securities enforcement actions in the US appears to be strikingly higher. Not only are there more financial regulators in the US, but they also carry bigger sticks than their foreign counterparts. The article concludes with some thoughts about additional lines of research in this area and the implications of this data for the ongoing debate over regulatory convergence.
Howell E. Jackson, Accounting for Social Security and its Reform, 41 Harv. J. on Legis. 59 (2004).
Categories:
Banking & Finance
,
Corporate Law & Securities
,
Labor & Employment
Sub-Categories:
Banking
,
Finance
,
Financial Markets & Institutions
,
Financial Reform
,
Securities Law & Regulation
,
Retirement Benefits & Social Security
Type: Article
Abstract
How well did the Social Security system do last year? According to the most recent annual report prepared by system's Board of Trustees, the Social Security trust funds showed a $165.4 billion net increase in assets in 2002 and reported accumulated reserves of nearly $1.4 trillion by year end. Unfortunately, these glowing reports are a cash-flow illusion, revealing only the difference between the system's annual cash receipts and its yearly payments for benefits and administrative expenses. Were the finances of the Social Security system restated under principles of accrual accounting, which recognizes commitments to make future payments when those obligations are actually incurred, the Social Security trust funds would have had to report a loss of several hundred billion dollars in 2002. Moreover, as of December 31, 2002, an accrual-based balance sheet of the Social Security system would have revealed more than $14.0 trillion of accrued liabilities to Social Security participants and beneficiaries. Even allowing for the system's $1.4 trillion of accumulated reserves as well as the value of excess future taxes to be paid by current participants over the rest of their working lives, the Social Security trust funds had unfunded obligations on the order of $10.5 trillion as of year-end 2002. This implicit debt of the Social Security system is several times greater than the explicit debt burden of the federal government and is growing by hundreds of billions of dollars each year. In addition to misrepresenting the magnitude of the Social Security system's looming financial crisis, the current accounting system for Social Security distorts public debate over Social Security reform proposals and confuses the relationship between Social Security and the rest of the federal budget. Accrual accounting, in contrast, would provide a clearer picture of the true state of the Social Security's current financial shortfall and the extent to which the system's burden on future generations is increasing each year. Accrual accounting would also create political incentives for our leaders to address Social Security's difficulties in a timely manner, and enhance the quality of public debate over the relative merits of competing reform proposals.
Howell E. Jackson, Accounting and Finance (Found. Press 2004).
Categories:
Banking & Finance
Sub-Categories:
Finance
Type: Book
Abstract
Accounting formats, bookkeeping, and legal aspects are introduced, followed by an overview of financial concepts in areas such as the relationship of time and money and corporate finance. This text is particularly suited to independent study or for use as a supplement to materials for courses in corporation law or contracts.
Howell E. Jackson & Eric Pan, Regulatory Competition in International Securities Markets: Evidence from Europe - Part I, 56 Bus. Law. 653 (2001).
Categories:
Banking & Finance
,
International, Foreign & Comparative Law
,
Government & Politics
Sub-Categories:
Banking
,
Finance
,
Financial Markets & Institutions
,
Financial Reform
,
Administrative Law & Agencies
,
Congress & Legislation
,
European Law
,
Foreign Law
Type: Article
Abstract
As the first installment of a two-part series, this Article reports the results of an empirical investigation designed to explore whether capital-raising practices in Europe in 1999 might illuminate the on-going debate in U.S. academic circles over the value of regulatory competition in international securities markets. Drawing on a series of 50 in-depth interviews with lawyers, investment bankers and regulators from London and other European financial centers, this Article presents new data about capital-raising practices in Europe in 1999. The authors find little evidence of the sort of market dynamics traditionally predicted by either proponents or critics or regulatory competition. Their research suggests that variations in the stringency of national systems of securities regulation across Europe is not a major factor in determining where and how European issuers access capital markets. Rather, European capital-raising practices seem to be heavily influenced by market forces that require issuers engaged in pan-European offerings to meet disclosure and due diligence standards modeled on and comparable to practices developed for private placements in the United States. The research also suggests that the growth of efficient trading linkages between European stock exchanges may diminish the need for European issuers to concern themselves with the legal requirements of other member states, a phenomenon not usually factored into discussions of regulatory competition in international securities markets.
Howell E. Jackson & Edward Symons, The Regulation of Financial Institutions: Selected Statutes, Regulations and Forms (West Publ'g 1999).
Categories:
Banking & Finance
Sub-Categories:
Financial Markets & Institutions
Type: Book
Abstract
This volume of selected statutes and regulations is designed to supplement the casebook, Regulation of Financial Institutions (1999) by Jackson and Symons.
Howell E. Jackson & Edward L. Symons, The Regulation of Financial Institutions: Cases and Materials (West Publ'g 1999).
Categories:
Banking & Finance
Sub-Categories:
Financial Markets & Institutions
Type: Book
Howell E. Jackson, The Expanding Obligations of Financial Holding Companies, 107 Harv. L. Rev. 509 (1994).
Categories:
Banking & Finance
Sub-Categories:
Financial Markets & Institutions
,
Finance
,
Banking
Type: Article

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