Section Description Provided by Instructor
As we enter 2016, the shape of the European financial regulatory landscape is still in flux. As has been the case for the last four years, our class will enjoy the benefit of topics that are still de lege ferenda. European –and for that matter the world – financial services will continue to search for new solutions and for ways to implement key European regulations such as Solvency II (for insurance companies) and the European Banking Union.
The most important recent initiative has been the drive by the European Commission for the Capital Market Union. This attempt to create an EU corporate bond market and advanced pan-EU securities infrastructure, involving Small and Medium Enterprises, is extraordinary complex, and we will be able to look at the key issues that this initiative raises.
In the middle of new initiatives, however, we will continue to focus on some of the unresolved problems that plague the European financial services industry. Among them, we will look at:
- The new resolution mechanisms put in place to avoid further interventions by taxpayers, as well as their complexity and limits
- The solidity of the European banking system that recently suffered of problems in Spain, Portugal, Italy and Austria
- The stability of Europe as sovereign debt continue to raise questions: at the center of this effort lies the over indebtedness of countries such as Italy or France, and the mechanism put in place to avoid the repetition of a Greek crisis
- The recent events that affected the City of London as the forum of the London Whale crisis at JP Morgan, the Libor fraud and the manipulation of the foreign exchange markets: in the preparation of the British referendum on the European Union, this will be a major test
- The attempts to adequately capitalize banks and deleveraging them whether they happen in Basel III, the TLAC initiative… might provoke an eruption of shadow banking
- Last but not least we will look closely at the role of the European Central Bank in its various incarnations: the protection of the Euro, the management of foreign reserves, quantitative easing and regulation are among the main chapters of that role
The class will be mostly interactive. Over the first four weeks, I will introduce the topics that form the legal framework and regulation of financial services in Europe and in the world. After that, your contribution will be solicited to present some of the issues that Europe is facing. A short paper will conclude your duty. There will be no exams.
My experience has been that the combination of JD and LLM students coming from all over the world makes this seminar lively, passionate and eye-opening. I am not expecting students to have a preliminary knowledge of financial matters. I am expecting you to be good and creative legal minds, open to look at the implications and broad issues surrounding complex legal matters and initiatives. My objectives is to ensure that you will be able to understand and follow one of the most complex legal disciplines: financial regulation.
F 1:40-3:30 pm
Method of Evaluation
J.D. Writing Credit
Learning Outcome Goals
- Students will have acquired an understanding of -and facility in- European banking & financial regulation, its application to recent situations having impacted European financial institutions & the economic & financial problems they try to regulate.