BU Law emerita professor Tamar Frankel explains the law of preemption as it pertains to broker-dealers and their investor clients. She predicts, among other things, that either the clients will demand that broker-dealers adhere to a fiduciary duty, or else that states will impose that duty on them.
BU Law emerita professor Tamar Frankel discusses the Securities and Exchange Commission (SEC)’s Regulation Best Interest (BI), which imposes on broker-dealers a commitment to act in the best interests of their clients. Specifically, Frankel addresses the SEC’s treatment of client waivers of the Regulation BI, which goes even further than general fiduciary law to prohibit any waiver of the broker-dealer’s conflicting interests.
BU Law emerita professor Tamar Frankel discusses an emerging issue affecting financial advisers—when a client may exercise control over the actions of the adviser. Frankel relates the story of an investment adviser that did not follow the client’s orders to cease certain investments, at a cost of almost $5 million to the client. As Frankel explains, the Securities and Exchange Commission (SEC) got involved, resulting in the investment adviser’s settlement for a significant payment to the client and other conditions.
BU Law emerita professor Tamar Frankel discusses risk and uncertainty to explain people’s decision making as to investments. Frankel points out that people have varying degrees of tolerance for risk and uncertainty, due in part to cultural and individual differences.
BU Law emerita professor Tamar Frankel describes two advertisements by Charles Schwab ostensibly praising independent investment advisers, who are fiduciaries. Frankel explains why this development may lead to a separation of advice from execution of trade in a way that offers greater protections to investors.
Cornell law professor Michael C. Dorf comments on Argentina’s national elections last month, in which the country elected as Vice President Cristina Fernández de Kirchner, who had previously served as President of Argentina from 2007 to 2015. Dorf considers why Kirchner, and indeed anyone, would accept a lower position than what she has previously held. Dorf argues that due to the Peter Principle—which states that workers in a hierarchical organization tend to rise to their level of incompetence—we would do well as a society to abandon the whole concept of a demotion.
BU Law emerita professor Tamar Frankel discusses the legal and ethical duty of an employer to discuss separation packages with an employees who is quitting. Frankel argues that while the disclosure of relevant information does not involve the law, it involves the employer’s relational culture and affects the employer’s financial situation and future plans with other employees.
Guest columnist and UC Hastings adjunct professor Samuel R. Miller considers whether Amazon is violating antitrust laws if it is (as is alleged) misusing data it obtains from third-party transactions. Miller explains two potential theories of antitrust liability—the “essential facilities” doctrine and the “monopoly leveraging” theory—and discusses the extent to which Amazon might be liable under each theory.
BU Law emerita professor Tamar Frankel discusses the dangers of allowing non-government entities—such as Facebook and its affiliates—to issue a “basket” of crypto-currency. Frankel explains the importance of government regulation of currency and cautions that we should seek a clearer understanding of any technology or currency that can potentially destabilize the nation’s economy.
BU Law emerita professor Tamar Frankel explains how seemingly small hidden transaction fees can add up to a significant cost to the investor, particularly in long-term investments. Frankel explains that strictly literal interpretations of the regulations of broker-dealers lead to this unfair and costly result for investors and argues that society should focus on reinforcing brokers’ fiduciary duties of care (expertise) and loyalty (avoiding conflicts of interest).
BU Law emerita professor Tamar Frankel argues that while private ordering—that is, rules of behavior without the backup of law—works well in some situations, such as among diamond traders and farmers, it cannot work in other situations, including the financial system. Frankel provides a brief review of the literature on private ordering and explains why the financial system cannot work under this model, and indeed why applying it would cause dangerous trends and damaging consequences.
BU Law emerita professor Tamar Frankel comments on the renewed importance of the repealed Glass-Steagall Act which Congress passed after the failure of the financial system in the 1920s. Frankel argues that the alarming path of Wells Fargo Bank supports imposing regulations on banks similar to those levied by the Glass-Steagall Act.
BU Law emerita professor Tamar Frankel discusses Ponzi schemes, explaining how they work and why the con artists are able to deceive victims. Frankel also describes what we might learn from studying con artists and their victims.
BU Law emerita professor Tamar Frankel explains why the Mitsubishi Bank’s Museum of Trust in Tokyo, Japan, which opened a few years ago, could serve as a model for the United States to reduce the cost of mistrust and breach of trust in this country. Frankel describes the museum and considers how it affects people’s perception of the importance of trust in society.
BU Law emerita professor Tamar Frankel explains why state regulatory bodies should impose fiduciary duties on broker-dealers, whose services involve both “sales talk” and the managing of securities of investors who often lack knowledge or expertise of the transactions. Frankel reiterates points she made during testimony before the New Jersey Bureau of Securities and makes the case for the long-overdue regulation of broker-dealers as fiduciaries.
Boston University law professor Tamar Frankel unpacks the nuanced layers of whistleblower law. Frankel describes the two main legal sources that deal with whistleblowers in the United States, as well as the process by which a retaliated against whistleblower-employee may seek protection and relief. Frankel also explores the various objections to protecting whistleblowers, noting how problems may arise in the event that an employee whose employment was terminated as a result of whistleblowing activities is reinstated to their former position via the court system.
Illinois law dean Vikram David Amar and professor Jason Mazzone continue their commentary on California’s mandate that women be placed on corporate boards. In this third of a series of columns on the topic, Amar and Mazzone consider whether SB 826 violates the Commerce Clause and whether there are constitutional issues with the state’s use of the law merely to make a political statement.
Illinois Law dean Vikram David Amar and professor Jason Mazzone continue their discussion of the constitutionality of California’s law requiring that publicly held corporations have a minimum number of women on their boards of directors. In this second of a series of columns, Amar and Mazzone consider whether California’s ostensible reasons for enacting and implementing SB826 are permissible and “important”—the standard required under federal intermediate equal protection scrutiny.
Guest columnists Tamar Frankel, the Robert B. Kent Professor of Law at Boston University School of Law, and Sezgi G. Fuechec, a foreign-trained transactional lawyer with an LL.M. degree in banking and financial law, discuss the trend of employee representation in corporate boards. Frankel and Fuechec point out that while idea of employee representation in the board level is not novel, it is an important development that more corporations should embrace now, rather than waiting until there is a significant conflict between employees, management, and financiers.
Illinois Law dean Vikram David Amar and professor Jason Mazzone consider the constitutionality of California’s recently passed law requiring that publicly held corporations to have a minimum number of women on their boards of directors. In this first of a series of columns on this topic, Amar and Mazzone analyze whether, under the Equal Protection Clause, the law fails federal intermediate scrutiny.
