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The Confused U.S. Framework for Foreign-Bank Insolvency: An Open Research Agenda

Author

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  • Schwarcz Steven L.

    (Duke University School of Law)

Abstract

Many of the world's banks have operations, if not branches or agencies, in the United States. When these banks fail, their U.S. operations and assets are subject to a confused, and confusing, patchwork of insolvency laws, both federal and state. This essay examines that legal patchwork, asking whether it is desirable, much less efficient, for a nation to have an inconsistent foreign-bank insolvency regime. The essay does not attempt to provide final answers but, instead, focuses on identifying the threshold conceptual issues that must be resolved before attempting to provide answers.

Suggested Citation

  • Schwarcz Steven L., 2005. "The Confused U.S. Framework for Foreign-Bank Insolvency: An Open Research Agenda," Review of Law & Economics, De Gruyter, vol. 1(1), pages 81-95, April.
    • Handle: RePEc:bpj:rlecon:v:1:y:2005:i:1:n:6
    DOI: 10.2202/1555-5879.1020
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    References listed on IDEAS

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    1. Bebchuk, Lucian Arye & Guzman, Andrew T, 1999. "An Economic Analysis of Transnational Bankruptcies," Journal of Law and Economics, University of Chicago Press, vol. 42(2), pages 775-808, October.
    2. Hans Degryse & Grégory Nguyen, 2004. "Interbank exposures: an empirical examination of systemic risk in the Belgian banking system," Working Paper Research 43, National Bank of Belgium.
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    Cited by:

    1. Grégory Nguyen & Peter Praet, 2006. "Cross-border crisis management : a race against the clock or a hurdle race ?," Financial Stability Review, National Bank of Belgium, vol. 4(1), pages 151-173, June.

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