Legal, Accounting & Business Responses to the Subprime Crisis (continuation)
With credit tight, problems are faced by almost every participant in the capital markets—from the borrowers, the servicers and the banks to the security holders, the insurers and the central banks. This course will examine these and other issues, with a view for addressing the “so what” question.
The first semester will begin with a two-month, faculty-led summary of the historical and business context for the crisis.
In November, a list of paper topics will be assembled, and students will be assigned a topic from one of their top choices. Topics might include:
--Addressing Loan Disclosure (e.g., the Lo-Doc and Ninja (no income, no job or assets) loans)
--Did Lawyers Overlook Important Ethical Obligations?
--Did Rating Agencies Fail? Are There Better Alternatives to Rating Agencies?
--Role and Responsibility of Banks, Brokers and Other Intermediaries (new regulation or limitation of exemptions)
--Solutions for Subprime Borrowers in Trouble
--Should Independent Directors Be Worried?
--Can Moral Hazards Be Prevented?
--Accounting Standards Are Stricter, but Do We Need More?
--Are There More Ecumenical Solutions to Bubbles?
First drafts of papers will be due in January. Student presentations will follow throughout the Spring. Final drafts will be due late April. If the quality is sufficient, we will then package these papers with a historical/business piece and create the first of a series of Duke Capital Markets Center publications.
Please note that course organization and content may vary substantially from semester to semester and descriptions are not necessarily professor specific. Please contact the instructor directly if you have particular course-related questions.