About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

59 B.C. L. Rev. 877 (2018)
Board to Death: How Busy Directors Could Cause the Next Financial Crisis

handle is hein.journals/bclr59 and id is 895 raw text is: BOARD TO DEATH: HOW BUSY DIRECTORS COULD CAUSE THE NEXT FINANCIAL CRISIS JEREMY C. KRESS INTRODUCTION .................................................................... 878 I. CORPORATE GOVERNANCE AND THE BOARD OF DIRECTORS ............ ................ 882 A. The Dual Roles ofthe Board. ............................................. 882 B. Financial Firms Are Special .............................. ...................... 885 1. Differences Between Financial and Nonfinancial Firms .............. ...... 886 2. The Unique Role of a Financial Institution Board .......................888 II. WHY DIRECTOR BUSYNESS MATTERS............................................... 891 A. The Psychology ofBusyness. ............................... .............. 891 B. Market-Wide Empirical Evidence ................................................ 894 C. Evidence from Financial Firms .................................................... 899 III. CASE STUDIES.................................................................903 A. Wells Fargo 's Fraudulent Accounts Scandal ...................... .............. 904 B. JPMorgan and the London Whale .................................. .......... 908 C. PNC and the Financial Crisis......................... 913 IV. FINANCIAL COMPANY BOARDS ARE ALARMINGLY OVERCOMMITTED ...............915 V. ALLEVIATING DIRECTOR OVERCOMMITMENT .................... 919 A. Limitations ofPrivate Ordering.. ..........................................920 B. Recommendations for Reform ....................................................... 923 1. Stricter Proxy Advisor Voting Standards. .................... ...................924 2. Enhanced Supervisory Assessments ............................ .....925 3. Targeted Regulatory Intervention. ............................ ............926 4. Increased Director Compensation. ............................ ............ 927 CONCLUSION ......................................................929 877

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most