Michael Chui and Prasanna Gai
- Published in print:
- 2005
- Published Online:
- July 2005
- ISBN:
- 9780199267750
- eISBN:
- 9780191602504
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199267758.001.0001
- Subject:
- Economics and Finance, Financial Economics
This book offers an analytical perspective on the policy debate on the design and reform of the international financial architecture. It stresses the role played by coordination problems in the ...
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This book offers an analytical perspective on the policy debate on the design and reform of the international financial architecture. It stresses the role played by coordination problems in the origin and management of crises by relating the insights of the new literature on global games to earlier work on currency crises, bank runs, and sovereign debt default. It draws on recent research and policy work to examine the debate on the design of sovereign bankruptcy procedures, the role of the IMF in influencing the actions of creditors and debtors, and the role of private sector involvement in the management of financial crises.Less
This book offers an analytical perspective on the policy debate on the design and reform of the international financial architecture. It stresses the role played by coordination problems in the origin and management of crises by relating the insights of the new literature on global games to earlier work on currency crises, bank runs, and sovereign debt default. It draws on recent research and policy work to examine the debate on the design of sovereign bankruptcy procedures, the role of the IMF in influencing the actions of creditors and debtors, and the role of private sector involvement in the management of financial crises.
Lawrence R. Jacobs and Desmond King
- Published in print:
- 2009
- Published Online:
- July 2012
- ISBN:
- 9780195392135
- eISBN:
- 9780199852543
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195392135.003.0001
- Subject:
- Political Science, American Politics
With the upheaval of the American economic and financial system, a large number of banks and firms are forced to declare bankruptcy while private markets and key industries have collapse as well. ...
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With the upheaval of the American economic and financial system, a large number of banks and firms are forced to declare bankruptcy while private markets and key industries have collapse as well. These reflect not only an unsustainable collection of government administrative practices and capacities but also question the legitimacy of the American state as a representative of democracy as well. In this chapter, the primary strains surrounding the American state are discussed. It also points out the deep-rooted dysfunctionalism in the operation of the American state's administrative institutions. To be able to understand current financial and economic turmoil occurring, the nature of unsustainability is presented in detail. Situated functionalism value in studying state sustainability is also illustrated.Less
With the upheaval of the American economic and financial system, a large number of banks and firms are forced to declare bankruptcy while private markets and key industries have collapse as well. These reflect not only an unsustainable collection of government administrative practices and capacities but also question the legitimacy of the American state as a representative of democracy as well. In this chapter, the primary strains surrounding the American state are discussed. It also points out the deep-rooted dysfunctionalism in the operation of the American state's administrative institutions. To be able to understand current financial and economic turmoil occurring, the nature of unsustainability is presented in detail. Situated functionalism value in studying state sustainability is also illustrated.
Oliver Hart
- Published in print:
- 1995
- Published Online:
- November 2003
- ISBN:
- 9780198288817
- eISBN:
- 9780191596353
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198288816.001.0001
- Subject:
- Economics and Finance, Financial Economics
This book provides a framework for thinking about economic relationships and institutions such as firms. The basic argument is that in a world of incomplete contracts, institutional arrangements are ...
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This book provides a framework for thinking about economic relationships and institutions such as firms. The basic argument is that in a world of incomplete contracts, institutional arrangements are designed to allocate power among agents. The first part of the book is concerned with the boundaries of the firm. It is argued that traditional approaches such as the neoclassical, principal‐agent, and transaction costs theories cannot by themselves explain firm boundaries. The book describes a theory—the incomplete contracting or property rights approach—based on the idea that power and control matter when contracts are incomplete. If the terms of a transaction can always be renegotiated, the incentives of a party to undertake relationship‐specific investments will depend crucially on the ability to control the use of productive assets when renegotiation takes place. Asset ownership becomes an essential source of power. The theory suggests that firm boundaries are chosen to allocate power optimally among the various parties to a transaction. The foundations of incomplete contracting are also discussed.The remainder of the book applies incomplete contracting ideas to understand the financial structure of closely held and public companies. The analysis illustrates how debt acts as an automatic mechanism to constrain the behaviour of managers or owners of both kinds of companies. In closely held companies, debt can force an entrepreneur to pay out funds to investors rather than to himself. In a public company, ownership is dispersed among small shareholders causing a separation between ownership and control. It is argued that debt and equity choices, capital structure decisions, bankruptcy procedures, corporate governance, and takeovers, play a substantial role in limiting the ability of a (self‐interested) manager to make unprofitable but power‐enhancing decisions.Less
This book provides a framework for thinking about economic relationships and institutions such as firms. The basic argument is that in a world of incomplete contracts, institutional arrangements are designed to allocate power among agents. The first part of the book is concerned with the boundaries of the firm. It is argued that traditional approaches such as the neoclassical, principal‐agent, and transaction costs theories cannot by themselves explain firm boundaries. The book describes a theory—the incomplete contracting or property rights approach—based on the idea that power and control matter when contracts are incomplete. If the terms of a transaction can always be renegotiated, the incentives of a party to undertake relationship‐specific investments will depend crucially on the ability to control the use of productive assets when renegotiation takes place. Asset ownership becomes an essential source of power. The theory suggests that firm boundaries are chosen to allocate power optimally among the various parties to a transaction. The foundations of incomplete contracting are also discussed.
The remainder of the book applies incomplete contracting ideas to understand the financial structure of closely held and public companies. The analysis illustrates how debt acts as an automatic mechanism to constrain the behaviour of managers or owners of both kinds of companies. In closely held companies, debt can force an entrepreneur to pay out funds to investors rather than to himself. In a public company, ownership is dispersed among small shareholders causing a separation between ownership and control. It is argued that debt and equity choices, capital structure decisions, bankruptcy procedures, corporate governance, and takeovers, play a substantial role in limiting the ability of a (self‐interested) manager to make unprofitable but power‐enhancing decisions.
Kunibert Raffer
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780195168006
- eISBN:
- 9780199783458
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195168003.003.0013
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter argues that that the IMF's sovereign debt restructuring mechanism (SDRM) is misguided in several ways. Most importantly, the SDRM proposal leaves the IMF itself in the position of having ...
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This chapter argues that that the IMF's sovereign debt restructuring mechanism (SDRM) is misguided in several ways. Most importantly, the SDRM proposal leaves the IMF itself in the position of having to make two crucial decisions: whether to endorse a stay of payments to creditors, and what amount of debt is “sustainable”, i.e., how much debt should be written off. This decision-making capacity creates a conflict of interest, as the IMF itself is almost always a creditor to countries experiencing debt crises. As an alternative to the IMF's SDRM, a mechanism modeled on Chapter 9 of the US bankruptcy code is proposed, which applies to municipalities and resolves some of the knotty problems of dealing with public (as compared with private) insolvency. This approach would rely on ad hoc panels formed by the debtor and creditor committees and therefore would not require that the IMF serve as arbitrator.Less
This chapter argues that that the IMF's sovereign debt restructuring mechanism (SDRM) is misguided in several ways. Most importantly, the SDRM proposal leaves the IMF itself in the position of having to make two crucial decisions: whether to endorse a stay of payments to creditors, and what amount of debt is “sustainable”, i.e., how much debt should be written off. This decision-making capacity creates a conflict of interest, as the IMF itself is almost always a creditor to countries experiencing debt crises. As an alternative to the IMF's SDRM, a mechanism modeled on Chapter 9 of the US bankruptcy code is proposed, which applies to municipalities and resolves some of the knotty problems of dealing with public (as compared with private) insolvency. This approach would rely on ad hoc panels formed by the debtor and creditor committees and therefore would not require that the IMF serve as arbitrator.
J. E. Stiglitz
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780195168006
- eISBN:
- 9780199783458
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195168003.003.0008
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter looks at the ethical aspects of globalization during the 1990s. It argues that in the way that they have sought to shape globalization, the advanced industrial countries and some of the ...
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This chapter looks at the ethical aspects of globalization during the 1990s. It argues that in the way that they have sought to shape globalization, the advanced industrial countries and some of the multilateral institutions that they control have violated some basic ethical norms. Three central issues in the context of global finance are analyzed: the design of debt contracts between developed and developing countries and other aspects of lending behavior; the consequences of excessive debt; and broader issues associated with the global reserve system. Three types of ethical problems are discussed: (1) where markets (or international institutions) take advantage of their “power” and the weaknesses of the developing country to pursue their own interests at the expense of or risk to those in the developing countries; (2) where international financial institutions provide advice that works to the disadvantage of the developing countries; and (3) where the markets, and especially the international financial institutions, have not done as much as they could for the well-being of the developed countries.Less
This chapter looks at the ethical aspects of globalization during the 1990s. It argues that in the way that they have sought to shape globalization, the advanced industrial countries and some of the multilateral institutions that they control have violated some basic ethical norms. Three central issues in the context of global finance are analyzed: the design of debt contracts between developed and developing countries and other aspects of lending behavior; the consequences of excessive debt; and broader issues associated with the global reserve system. Three types of ethical problems are discussed: (1) where markets (or international institutions) take advantage of their “power” and the weaknesses of the developing country to pursue their own interests at the expense of or risk to those in the developing countries; (2) where international financial institutions provide advice that works to the disadvantage of the developing countries; and (3) where the markets, and especially the international financial institutions, have not done as much as they could for the well-being of the developed countries.
Darrell Duffie
- Published in print:
- 2011
- Published Online:
- September 2011
- ISBN:
- 9780199279234
- eISBN:
- 9780191728419
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199279234.001.0001
- Subject:
- Economics and Finance, Financial Economics
This book addresses the empirical estimation of corporate default risk. The book addresses the measurement of corporate default risk based on the empirical estimation of default intensity processes, ...
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This book addresses the empirical estimation of corporate default risk. The book addresses the measurement of corporate default risk based on the empirical estimation of default intensity processes, and their correlation. The default intensity of a borrower is the mean rate of arrival of default, conditional on the available information. For example, a default intensity of 0.1 means an expected arrival rate of one default per ten years, given all current information. Default intensities change with the arrival of new information about the borrower and its economic environment. The main focus here is on methodologies for estimating default intensities and on some key empirical properties of corporate default risk. The book pays special attention to the correlation of default risk across firms, and unobserved “frailty” factors that increase this correlation.Less
This book addresses the empirical estimation of corporate default risk. The book addresses the measurement of corporate default risk based on the empirical estimation of default intensity processes, and their correlation. The default intensity of a borrower is the mean rate of arrival of default, conditional on the available information. For example, a default intensity of 0.1 means an expected arrival rate of one default per ten years, given all current information. Default intensities change with the arrival of new information about the borrower and its economic environment. The main focus here is on methodologies for estimating default intensities and on some key empirical properties of corporate default risk. The book pays special attention to the correlation of default risk across firms, and unobserved “frailty” factors that increase this correlation.
Gary Herrigel
- Published in print:
- 2010
- Published Online:
- September 2010
- ISBN:
- 9780199557738
- eISBN:
- 9780191720871
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199557738.003.0004
- Subject:
- Business and Management, Political Economy
The chapter compares emergence of minimills in Germany, Japan and the US, along with the recomposition of the Integrated Steel Mill sector. Steel production as an industrial activity in each of the ...
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The chapter compares emergence of minimills in Germany, Japan and the US, along with the recomposition of the Integrated Steel Mill sector. Steel production as an industrial activity in each of the societies, especially in the United States, is radically reconceived, but continues to be successful in each country. Again, in contrast to the claims of Varieties of Capitalism, the American steel industry proves adept at both gradual and radical innovation, as do the German and Japanese industries.Less
The chapter compares emergence of minimills in Germany, Japan and the US, along with the recomposition of the Integrated Steel Mill sector. Steel production as an industrial activity in each of the societies, especially in the United States, is radically reconceived, but continues to be successful in each country. Again, in contrast to the claims of Varieties of Capitalism, the American steel industry proves adept at both gradual and radical innovation, as do the German and Japanese industries.
Darrell Duffie
- Published in print:
- 2011
- Published Online:
- September 2011
- ISBN:
- 9780199279234
- eISBN:
- 9780191728419
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199279234.003.0002
- Subject:
- Economics and Finance, Financial Economics
This chapter provides the mathematical foundations for stochastic intensity, on which most of the methodology is based. The intensity of an event such as default is its conditional mean arrival rate, ...
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This chapter provides the mathematical foundations for stochastic intensity, on which most of the methodology is based. The intensity of an event such as default is its conditional mean arrival rate, measured in events per year, given all information currently available to the observer. The chapter also presents the multi-firm version of the doubly-stochastic hypothesis, under which the sole source of default correlation between two firms is the dependence of their default intensities on common or correlated observable risk factors. The doubly-stochastic property rules out contagion as well as correlation induced by unobservable risk factors. The chapter includes a mathematical device for testing a model of the default intensity processes of a large number of borrowers.Less
This chapter provides the mathematical foundations for stochastic intensity, on which most of the methodology is based. The intensity of an event such as default is its conditional mean arrival rate, measured in events per year, given all information currently available to the observer. The chapter also presents the multi-firm version of the doubly-stochastic hypothesis, under which the sole source of default correlation between two firms is the dependence of their default intensities on common or correlated observable risk factors. The doubly-stochastic property rules out contagion as well as correlation induced by unobservable risk factors. The chapter includes a mathematical device for testing a model of the default intensity processes of a large number of borrowers.
Darrell Duffie
- Published in print:
- 2011
- Published Online:
- September 2011
- ISBN:
- 9780199279234
- eISBN:
- 9780191728419
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199279234.003.0003
- Subject:
- Economics and Finance, Financial Economics
This chapter presents the theory underlying the maximum likelihood estimation of term structures of survival probabilities, for example the dependence of default probability on time horizon. The ...
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This chapter presents the theory underlying the maximum likelihood estimation of term structures of survival probabilities, for example the dependence of default probability on time horizon. The methodology allows the events of concern to be censored by disappearance of corporations from the data, due for instance to merger or acquisition. The idea is to estimate the parameter vector determining the default intensity as well as the parameter vector determining the transition probabilities of the covariate process, and then to use the maximum likelihood estimator of these parameters to estimate the survival probabilities of the corporations, for a range of choices of the survival horizon. The results show that the joint estimation of the parameters is relatively tractable under the doubly-stochastic property.Less
This chapter presents the theory underlying the maximum likelihood estimation of term structures of survival probabilities, for example the dependence of default probability on time horizon. The methodology allows the events of concern to be censored by disappearance of corporations from the data, due for instance to merger or acquisition. The idea is to estimate the parameter vector determining the default intensity as well as the parameter vector determining the transition probabilities of the covariate process, and then to use the maximum likelihood estimator of these parameters to estimate the survival probabilities of the corporations, for a range of choices of the survival horizon. The results show that the joint estimation of the parameters is relatively tractable under the doubly-stochastic property.
Ben S. Branch, Hugh M. Ray, and Robin Russell
- Published in print:
- 2007
- Published Online:
- May 2007
- ISBN:
- 9780195306989
- eISBN:
- 9780199783762
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195306989.001.0001
- Subject:
- Economics and Finance, Financial Economics
This book examines the business liquidation process — the winding up of the affairs of a company that has either decided voluntarily to liquidate or been forced to liquidate by its creditors. The ...
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This book examines the business liquidation process — the winding up of the affairs of a company that has either decided voluntarily to liquidate or been forced to liquidate by its creditors. The contributors to the book have substantial hands-on experience in the reorganization and liquidation of businesses, the sale of business assets, and management of commercial litigation. They share their approach to maximizing and creating value in the deteriorating and chaotic business environment that so often leads to a company going out of business. The legal forums for liquidation — bankruptcy, state receivership, federal receivership, and assignment for the benefit of creditors — are explained. The liquidator's role, powers, duties, oversight, and compensation are outlined and the special rules for bankruptcy trustees are set forth. The chapters also cover the major tasks of liquidation including investigation of the company, termination of employees, disposition of assets, evaluation of litigation, resolution of claim, distributions and ultimately, and the dissolution or “winding down” of the company.Less
This book examines the business liquidation process — the winding up of the affairs of a company that has either decided voluntarily to liquidate or been forced to liquidate by its creditors. The contributors to the book have substantial hands-on experience in the reorganization and liquidation of businesses, the sale of business assets, and management of commercial litigation. They share their approach to maximizing and creating value in the deteriorating and chaotic business environment that so often leads to a company going out of business. The legal forums for liquidation — bankruptcy, state receivership, federal receivership, and assignment for the benefit of creditors — are explained. The liquidator's role, powers, duties, oversight, and compensation are outlined and the special rules for bankruptcy trustees are set forth. The chapters also cover the major tasks of liquidation including investigation of the company, termination of employees, disposition of assets, evaluation of litigation, resolution of claim, distributions and ultimately, and the dissolution or “winding down” of the company.
Peng Xu
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199284511
- eISBN:
- 9780191713705
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199284511.003.0006
- Subject:
- Economics and Finance, South and East Asia
This chapter presents evidence on recent bankruptcy resolution and bankruptcy reform in Japan. Prior to bankruptcy, bank lenders are less likely to intervene than they did before bankruptcy. Most ...
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This chapter presents evidence on recent bankruptcy resolution and bankruptcy reform in Japan. Prior to bankruptcy, bank lenders are less likely to intervene than they did before bankruptcy. Most bankrupt firms experience abnormal president turnover around bankruptcy filings. Civil Rehabilitation firm expenditure in bankruptcy is substantially shorter than that in a Corporate Reorganization firm. Also, Corporate Reorganization firms have proven to emerge quicker after the 2000 bankruptcy reform. The main difference between rehabilitation duration and reorganization duration is that leverage only prolongs Civil Rehabilitation duration.Less
This chapter presents evidence on recent bankruptcy resolution and bankruptcy reform in Japan. Prior to bankruptcy, bank lenders are less likely to intervene than they did before bankruptcy. Most bankrupt firms experience abnormal president turnover around bankruptcy filings. Civil Rehabilitation firm expenditure in bankruptcy is substantially shorter than that in a Corporate Reorganization firm. Also, Corporate Reorganization firms have proven to emerge quicker after the 2000 bankruptcy reform. The main difference between rehabilitation duration and reorganization duration is that leverage only prolongs Civil Rehabilitation duration.
Noriyuki Yanagawa
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199284511
- eISBN:
- 9780191713705
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199284511.003.0007
- Subject:
- Economics and Finance, South and East Asia
This chapter explores the dramatic growth of corporate revival funds in Japan. These funds are made up of private equity and represent an alternative to main bank intervention in promoting corporate ...
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This chapter explores the dramatic growth of corporate revival funds in Japan. These funds are made up of private equity and represent an alternative to main bank intervention in promoting corporate restructuring. Moreover, corporate revival funds have contributed to the reduction of non-performing loans in the banking sector. These funds now play an active role in promoting M&A activities. Many of these emerging funds specialized on corporate revival are, in fact, closely related to Japanese banks. While revival funds were nearly all managed by foreign companies before 2000, new government related funds have also emerged, such as the Industrial Revitalization Corporation fund. This development raises questions as to how bank funds' activities are distinct and may complement traditional forms of bank monitoring over client firms. The chapter argues that a potential merit of bank related funds is to diminish moral hazard problems by separating rehabilitation activities from the banks.Less
This chapter explores the dramatic growth of corporate revival funds in Japan. These funds are made up of private equity and represent an alternative to main bank intervention in promoting corporate restructuring. Moreover, corporate revival funds have contributed to the reduction of non-performing loans in the banking sector. These funds now play an active role in promoting M&A activities. Many of these emerging funds specialized on corporate revival are, in fact, closely related to Japanese banks. While revival funds were nearly all managed by foreign companies before 2000, new government related funds have also emerged, such as the Industrial Revitalization Corporation fund. This development raises questions as to how bank funds' activities are distinct and may complement traditional forms of bank monitoring over client firms. The chapter argues that a potential merit of bank related funds is to diminish moral hazard problems by separating rehabilitation activities from the banks.
Dr. Ben S. Branch, Hugh M. Ray, and Robin Russell
- Published in print:
- 2007
- Published Online:
- May 2007
- ISBN:
- 9780195306989
- eISBN:
- 9780199783762
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195306989.003.0007
- Subject:
- Economics and Finance, Financial Economics
This chapter sets out the process for finding and evaluating the liquid assets, illiquid assets, disputed assets, wasting assets, and contingent assets of the business. To describe what to do with ...
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This chapter sets out the process for finding and evaluating the liquid assets, illiquid assets, disputed assets, wasting assets, and contingent assets of the business. To describe what to do with them, the standard asset valuation and sale methods are discussed. The bankruptcy sale procedure guidelines and the guidelines for employing investment bankers, art dealers, appraisers, auctioneers, and the like to assist in the sale process are set forth. The aim is to understand the appropriate disposition methods for particular assets (i.e., sale options), determine the price of each asset to be liquidated, and understand the abandonment option if circumstances so warrant.Less
This chapter sets out the process for finding and evaluating the liquid assets, illiquid assets, disputed assets, wasting assets, and contingent assets of the business. To describe what to do with them, the standard asset valuation and sale methods are discussed. The bankruptcy sale procedure guidelines and the guidelines for employing investment bankers, art dealers, appraisers, auctioneers, and the like to assist in the sale process are set forth. The aim is to understand the appropriate disposition methods for particular assets (i.e., sale options), determine the price of each asset to be liquidated, and understand the abandonment option if circumstances so warrant.
Dr. Ben S. Branch, Hugh M. Ray, and Robin Russell
- Published in print:
- 2007
- Published Online:
- May 2007
- ISBN:
- 9780195306989
- eISBN:
- 9780199783762
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195306989.003.0009
- Subject:
- Economics and Finance, Financial Economics
This chapter explores the process for determining the validity and priority of claims and for making distributions on those claims. This includes the liquidator's role in investigating and, if ...
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This chapter explores the process for determining the validity and priority of claims and for making distributions on those claims. This includes the liquidator's role in investigating and, if circumstances warrant, filing a claim objection to reduce or disallow the claim. Various bankruptcy concepts involved in this process such as administrative claims, the absolute priority rule, and substantive consolidation are discussed along with the mechanics of making distributions. The chapter concludes with an example of the resolution of a contested IRS tax claim through the negotiation of a reduction.Less
This chapter explores the process for determining the validity and priority of claims and for making distributions on those claims. This includes the liquidator's role in investigating and, if circumstances warrant, filing a claim objection to reduce or disallow the claim. Various bankruptcy concepts involved in this process such as administrative claims, the absolute priority rule, and substantive consolidation are discussed along with the mechanics of making distributions. The chapter concludes with an example of the resolution of a contested IRS tax claim through the negotiation of a reduction.
Olivier Chaline
- Published in print:
- 2013
- Published Online:
- January 2014
- ISBN:
- 9780197265383
- eISBN:
- 9780191760433
- Item type:
- chapter
- Publisher:
- British Academy
- DOI:
- 10.5871/bacad/9780197265383.003.0011
- Subject:
- History, European Early Modern History
Did the immense investment in the French Navy in the context of the crisis of the monarchy outstrip the financial resources of the État royal, thus being a major cause or even the principal cause of ...
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Did the immense investment in the French Navy in the context of the crisis of the monarchy outstrip the financial resources of the État royal, thus being a major cause or even the principal cause of the Revolution? Financially the critical period was not the War of American Independence but the years following the return of peace. The decisions made by those in charge of the French navy to maintain its expansion, while the costs of construction were doubling and while the state-funded budget was shrinking, were heavy with troublesome consequences as the monarchy was plunged into political crisis after the summoning of the Assembly of Notables.Less
Did the immense investment in the French Navy in the context of the crisis of the monarchy outstrip the financial resources of the État royal, thus being a major cause or even the principal cause of the Revolution? Financially the critical period was not the War of American Independence but the years following the return of peace. The decisions made by those in charge of the French navy to maintain its expansion, while the costs of construction were doubling and while the state-funded budget was shrinking, were heavy with troublesome consequences as the monarchy was plunged into political crisis after the summoning of the Assembly of Notables.
Michael Lobban
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780199258826
- eISBN:
- 9780191705168
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199258826.003.0018
- Subject:
- Law, Legal History
This chapter on bankruptcy and insolvency in the 19th century discusses the system of bankruptcy in 1820, bankruptcy law reform from 1825-31, the law of insolvency, reforming bankruptcy and ...
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This chapter on bankruptcy and insolvency in the 19th century discusses the system of bankruptcy in 1820, bankruptcy law reform from 1825-31, the law of insolvency, reforming bankruptcy and insolvency from 1838-49, bankruptcy law from 1849-61, reforming bankruptcy and insolvency from 1861-83, and the law of bankruptcy from 1883-1914.Less
This chapter on bankruptcy and insolvency in the 19th century discusses the system of bankruptcy in 1820, bankruptcy law reform from 1825-31, the law of insolvency, reforming bankruptcy and insolvency from 1838-49, bankruptcy law from 1849-61, reforming bankruptcy and insolvency from 1861-83, and the law of bankruptcy from 1883-1914.
Michael Lobban
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780199258826
- eISBN:
- 9780191705168
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199258826.003.0019
- Subject:
- Law, Legal History
This chapter on consumer credit and debt in the 19th century covers imprisonment for debt, the poor man's bankruptcy, pawnbroking, money lenders, and the purchase of goods through hire purchase ...
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This chapter on consumer credit and debt in the 19th century covers imprisonment for debt, the poor man's bankruptcy, pawnbroking, money lenders, and the purchase of goods through hire purchase agreements.Less
This chapter on consumer credit and debt in the 19th century covers imprisonment for debt, the poor man's bankruptcy, pawnbroking, money lenders, and the purchase of goods through hire purchase agreements.
Mark Baldassare
- Published in print:
- 1998
- Published Online:
- March 2012
- ISBN:
- 9780520214859
- eISBN:
- 9780520921368
- Item type:
- book
- Publisher:
- University of California Press
- DOI:
- 10.1525/california/9780520214859.001.0001
- Subject:
- Sociology, Social Research and Statistics
When Orange County, California, filed for Chapter 9 protection on December 6, 1994, it became the largest municipality in United States history to declare bankruptcy. Providing a comprehensive ...
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When Orange County, California, filed for Chapter 9 protection on December 6, 1994, it became the largest municipality in United States history to declare bankruptcy. Providing a comprehensive analysis of this momentous fiscal crisis, the book uncovers the many twists and turns from the dark days in December 1994 to the financial recovery of June 1996. Utilizing a wealth of primary materials from the county government and Merrill Lynch, as well as interviews with key officials and players in this drama, it untangles the causes of this $1.64 billion fiasco. It identifies three factors critical to understanding the bankruptcy: one, the political fragmentation of the numerous local governments in the area; two, the fiscal conservatism underlying voters' feelings about their tax dollars; and three, the financial austerity in state government and in meeting rising state expenditures. The book finds that these forces help to explain how a county known for its affluence and conservative politics could have allowed its cities' school, water, transportation, and sanitation agencies to be held hostage to this failed investment pool. Meticulously examining the events that led up to the bankruptcy, the local officials' response to the fiscal emergency, and the road to fiscal recovery—as well as the local government reforms engendered by the crisis—this book is a dramatic and instructive economic morality tale. It underlines the dangers inherent in a freewheeling bull economy and the imperatives of local and state governments to protect fiscal assets. As this book shows, Orange County need not—and should not—happen again.Less
When Orange County, California, filed for Chapter 9 protection on December 6, 1994, it became the largest municipality in United States history to declare bankruptcy. Providing a comprehensive analysis of this momentous fiscal crisis, the book uncovers the many twists and turns from the dark days in December 1994 to the financial recovery of June 1996. Utilizing a wealth of primary materials from the county government and Merrill Lynch, as well as interviews with key officials and players in this drama, it untangles the causes of this $1.64 billion fiasco. It identifies three factors critical to understanding the bankruptcy: one, the political fragmentation of the numerous local governments in the area; two, the fiscal conservatism underlying voters' feelings about their tax dollars; and three, the financial austerity in state government and in meeting rising state expenditures. The book finds that these forces help to explain how a county known for its affluence and conservative politics could have allowed its cities' school, water, transportation, and sanitation agencies to be held hostage to this failed investment pool. Meticulously examining the events that led up to the bankruptcy, the local officials' response to the fiscal emergency, and the road to fiscal recovery—as well as the local government reforms engendered by the crisis—this book is a dramatic and instructive economic morality tale. It underlines the dangers inherent in a freewheeling bull economy and the imperatives of local and state governments to protect fiscal assets. As this book shows, Orange County need not—and should not—happen again.
Joseph E. Stiglitz
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780199578788
- eISBN:
- 9780191723049
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199578788.003.0002
- Subject:
- Economics and Finance, Macro- and Monetary Economics, Development, Growth, and Environmental
This chapter focuses on what lessons might be drawn for sovereign insolvency from the principles underlying national policies for corporate or personal bankruptcy. It then develops a framework to ...
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This chapter focuses on what lessons might be drawn for sovereign insolvency from the principles underlying national policies for corporate or personal bankruptcy. It then develops a framework to analyze alternative mechanisms for sovereign debt restructuring. It draws parallels between private and government bankruptcy and finds that the special nature of governments makes it complicated, but not impossible, to define an attractive sovereign counterpart to national bankruptcy laws. It notes that different processes for dealing with insolvency, as well as their outcomes, can be more or less efficient and fair. It argues that countries adopt domestic bankruptcy laws for both efficiency and equity reasons, and that the goal of an effective bankruptcy regime should therefore be both ex ante and ex post, efficient and equitableLess
This chapter focuses on what lessons might be drawn for sovereign insolvency from the principles underlying national policies for corporate or personal bankruptcy. It then develops a framework to analyze alternative mechanisms for sovereign debt restructuring. It draws parallels between private and government bankruptcy and finds that the special nature of governments makes it complicated, but not impossible, to define an attractive sovereign counterpart to national bankruptcy laws. It notes that different processes for dealing with insolvency, as well as their outcomes, can be more or less efficient and fair. It argues that countries adopt domestic bankruptcy laws for both efficiency and equity reasons, and that the goal of an effective bankruptcy regime should therefore be both ex ante and ex post, efficient and equitable
Lynn M. LoPucki and Joseph W. Doherty
- Published in print:
- 2011
- Published Online:
- May 2011
- ISBN:
- 9780195337723
- eISBN:
- 9780199893942
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195337723.001.0001
- Subject:
- Law, Company and Commercial Law
Bankrupt Enron paid well over a billion dollars in cash to bankruptcy lawyers, financial advisors, and other bankruptcy professionals. The managers of most bankrupt companies pay the professionals ...
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Bankrupt Enron paid well over a billion dollars in cash to bankruptcy lawyers, financial advisors, and other bankruptcy professionals. The managers of most bankrupt companies pay the professionals with money that would otherwise have gone to creditors, employees, shareholders, or to saving the companies. To prevent excessive payments, the bankruptcy code and rules establish an elaborate system for public reporting and court approval of professional fees. Armed with the ability to choose among courts that want or need to attract the cases, the professionals have largely taken charge of the fee-control system and rendered it toothless. The professionals ignore many of the governing rules and the courts do nothing about it. Effective methods for assessing and controlling fees do exist, but it is not in the interests of the courts or the professionals to apply them. This book is based on a study of thousands of documents from the court files in over a hundred of the largest bankruptcy cases. It employs statistical analysis and documents its findings, and provides an unprecedented window on the worlds of bankruptcy professionals, professional fees, and their scientific study. Through that window, the book shows both a disturbing picture of a legal system in crisis and a hopeful one with opportunities for desperately needed reform.Less
Bankrupt Enron paid well over a billion dollars in cash to bankruptcy lawyers, financial advisors, and other bankruptcy professionals. The managers of most bankrupt companies pay the professionals with money that would otherwise have gone to creditors, employees, shareholders, or to saving the companies. To prevent excessive payments, the bankruptcy code and rules establish an elaborate system for public reporting and court approval of professional fees. Armed with the ability to choose among courts that want or need to attract the cases, the professionals have largely taken charge of the fee-control system and rendered it toothless. The professionals ignore many of the governing rules and the courts do nothing about it. Effective methods for assessing and controlling fees do exist, but it is not in the interests of the courts or the professionals to apply them. This book is based on a study of thousands of documents from the court files in over a hundred of the largest bankruptcy cases. It employs statistical analysis and documents its findings, and provides an unprecedented window on the worlds of bankruptcy professionals, professional fees, and their scientific study. Through that window, the book shows both a disturbing picture of a legal system in crisis and a hopeful one with opportunities for desperately needed reform.
