Fordham Journal of Corporate & Financial Law

Fordham Corporate Law Center

In a lecture, William C. Dudley, president, Federal Reserve Bank of New York, discussed the economic outlook and the challenges that face the Federal Reserve in terms of monetary policy going forward. On the positive side, clearly the financial markets are performing better and the economy is recovering. Also, the Federal Reserve has begun to taper its rate of asset purchases. The Treasury purchase program will end this month and the agency mortgage-backed securities purchase program by the e...

Risks and Hedges of Providing Liquidity in Complex Securities: The Impact of Insider Trading On Options Market Makers

This Article analyzes the impact of insider trading on options market makers from the perspective of the characteristics of options as complex securities, the structural features of options markets, and the corresponding unique risks and hedges of these market participants. It is argued that options market makers, as opposed to their counterparts in equity markets, suffer unique substantial losses from insider trading, and evidence to support this proposition is offered. Judicial decisions on...

Financial Statement Reporting of Pending Litigation: Attorneys, Auditors, and Differences of Opinions

Pending litigation can be a significant source of potential liability for public companies. The lack of adequate disclosure of this potential liability has caused confusion for investors, lenders, and other financial statement users. Auditors are required to assess the appropriateness of financial statement disclosures regarding pending litigation. However, the auditor's ability to do so depends upon receiving information from the company's attorneys. As independent auditors, Certified Public...

Llcs Are the New King of the Hill: An Empirical Study of the Number of New Llcs, Corporations, and Lps Formed in the United States Between 2004-2007 and How Llcs Were Taxed for Tax Years 2002-2006

A revolution has occurred in the world of business organizations law. The limited liability company (LLC) is now undeniably the most popular form of new business entity in the US. This is amazing, especially because for most of America's history the general partnership and the corporation dominated the business organizations' landscape. Further, there is no other alternative entity on the horizon that shows the promise or potential to unseat the LLC as the new king of the hill. The only areas...

A Short History of Tontines

A tontine is an investment scheme through which shareholders derive some form of profit or benefit while they are living, but the value of each share devolves to the other participants and not the shareholder's heirs on the death of each shareholder. The tontine is usually brought to an end through a dissolution and distribution of assets to the living shareholders when the number of shareholders reaches an agreed small number. Since tontines have been neglected for many years, this essay is ...

Insider Trading and Hedge Funds: A Dangerous Pair

In recent years there has been dramatic growth in the hedge fund industry, accompanied by an equally sizable increase in the public notoriety of such funds. Hedge funds currently control a substantial portion of trading in many financial markets and are subject to less federal regulation than nearly any other type of financial entity or institution. The US Securities and Exchange commission (SEC) recently made cases involving insider trading within hedge funds a priority, a change that can be...