Corporate Governance and the new Financial Regulation:
Complements or Substitutes?

European Corporate Governance Institute
Monday, 25th October 2010
Bibliotheque Solvay, Brussels

A free all-day conference under the auspices of the Securities and Exchange Commission (SEC) and the European Commission, organised by the European Corporate Governance Institute, the Brookings Institution and Columbia Law School. The organisers are most grateful for the sponsorship of the 2010 Conference by PricewaterhouseCoopers (PwC).

Programme | Presentations | Video recording | Continuing Legal Education | List of Attendees| Background to the Dialogue
Continuing Legal Education (CLE)
Columbia Law School has been certified by the New York State Continuing Legal Education (CLE) Board as an Accredited Provider of CLE programs.

Under New York State CLE regulations, this transitional and non-transitional CLE program will provide in aggregate a maximum of 4.5 credit hours which can be applied toward the Areas of Professional Practice requirement as follows:

Session 1 - Prevention NYS CLE: 1.5 credit hours, Areas of Professional Practice
Session 2 - Keynote speech NYS CLE: 0.5 credit hours, Areas of Professional Practice
Session 3 - Early Intervention and Resolution Session Keynote Address
NYS CLE: 1.0 credit hours, Areas of Professional Practice
Resolution Roundtable
NYS CLE: 1.5 credit hours, Areas of Professional Practice


US-Barred Attorneys (New York State) Attorneys wishing to receive CLE credit should pre-register for the Conference using the Conference registration facility. At the conference itself, attorneys seeking credit must sign the program register both prior to and following their attending program sessions, both in the morning and afternoon. CLE credit will be awarded only for attendance of entire sessions, as reflected in the register. Attorneys attending only part of a session (e.g. arriving late or leaving early) are not eligible for partial credit for the session, although they are welcome to attend it. On departure, attorneys seeking credit should submit their completed Evaluation Form, provided at the Conference.

US-Barred Attorneys (Non New York State): Please note that only New York State certificates will be issued.  However, individual attorneys may request accreditation from their particular states for, or in some cases may simply report, credits earned from a CLE program which was given by an out-of-state Accredited Provider. Each state has its own procedure, and attorneys should check their state’s rules governing the reporting of these credits.
Reading list
Required Reading List

Session 1 – Prevention

Bebchuk, Lucian A. and Holger Spamann, Regulating Bankers' Pay (6/2009, Revised 2/2010), Georgetown Law Journal, Vol. 98, No. 2, pp. 247-287, 2010; Harvard Law and Economics Discussion Paper No. 64. Available at SSRN:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1410072

Bruner, Christopher M., Corporate Governance Reform in a Time of Crisis, (Revised: September 27, 2010), 36 J. CORP. L. (forthcoming 2010). Available at SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1617890

Gordon, Jeffrey N., Executive Compensation and Corporate Governance in Financial Firms: The Case for Convertible Equity-Based Pay, (July 2010), Columbia Law and Economics Working Paper No. 373. Available at SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1633906

Hellwig, Martin F., Systemic Risk in the Financial Sector: An Analysis of the Subprime-Mortgage Financial Crisis (November 2008). MPI Collective Goods Preprint, No. 2008/43. Available at SSRN:
http://ssrn.com/abstract=1309442

Session 2 – Keynote speech

Coffee, John C. and Sale, Hillary A., Redesigning the SEC: Does the Treasury Have a Better Idea? (November 1, 2008; Revised: March 2010). U Iowa Legal Studies Research Paper No. 08-51; Columbia Law and Economics Working Paper No. 342. Available at SSRN: http://ssrn.com/abstract=1309776

Concept Release on the US Proxy System, available at http://www.sec.gov/rules/concept/2010/34-62495.pdf

Session 3 – Early Intervention and Resolution

Bainbridge, Stephen M., Dodd-Frank: Quack Federal Corporate Governance Round II (September 7, 2010). UCLA School of Law, Law-Econ Research Paper No. 10-12. Available at SSRN:
http://ssrn.com/abstract=1673575

Baird, Douglas G. and Edward R. Morrison, Dodd-Frank for Bankruptcy Lawyers, 2010 ABI/NYU Bankruptcy and Business Reorganization Workshop, (last visited Oct. 12, 2010) available at
http://www.abiworld.org/AM/Template.cfm?Section=Home&CONTENTID=61897&TEMPLATE=/CM/ContentDisplay.cfm

Freixas, Xavier and Parigi, Bruno Maria, Lender of Last Resort and Bank Closure Policy (April 2008). CESifo Working Paper Series No. 2286. Available at SSRN: http://ssrn.com/abstract=1126628

Gordon, Jeffrey N. and Muller, Christopher, Confronting Financial Crisis: Dodd-Frank's Dangers and the Case for a Systemic Emergency Insurance Fund (September 2010). Columbia Law and Economics Working Paper No. 374. Available at SSRN: http://ssrn.com/abstract=1636456

Recommended Reading List

Session 1 – Prevention

EU: Corporate Governance of Financial Institutions Green Paper
http://ec.europa.eu/internal_market/company/modern/corporate_governance_in_financial_institutions_en.htm

UK: Walker Review
http://webarchive.nationalarchives.gov.uk/+/http://www.hm-treasury.gov.uk/walker_review_information.htm">

Ireland : Corporate Governance Requirements for Credit Institutions and Insurance Companies
http://www.financialregulator.ie/consultation-papers/Documents/CP41%20-%20Corporate%20Governance%20Requirements/Corporate%20Gov%20Requirements.pdf

EU: Credit Ratings Agency Regulation
href="http://ec.europa.eu/internal_market/securities/agencies/index_en.htm">

EU: Remuneration
http://ec.europa.eu/internal_market/company/directors-remun/index_en.htm

EU Commission/EU Parliament compromise sent to the European Council
http://register.consilium.europa.eu/pdf/en/10/st11/st11527.en10.pdf

FSB: Remuneration
http://www.financialstabilityboard.org/list/fsb_publications/tid_123/index.htm

EU: Capital Requirements
http://ec.europa.eu/internal_market/bank/regcapital/index_en.htm

Cheng, Ing-Haw, Hong, Harrison G. and Scheinkman, Jose A., Yesterday’s Heroes: Compensation and Creative Risk-Taking (May 25, 2010). ECGI Finance Working Paper No. 285/2010. Available at SSRN:
http://ssrn.com/abstract=1502762

Anat R. Admati, Peter M. DeMarzo, Martin F. Hellwig and Paul Pfleiderer Fallacies, Irrelevant Facts, and Myths in the Discussion of Capital Regulation: Why Bank Equity is Not Expensive. Available at SSRN:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1669704

K.J. Hopt, E. Wymeersch, H. Kanda, H. Baum (eds.) Market Discipline, Information Processing, and Corporate Governance Available from this website: http://www.tcgd.org/2010/documents/2005_19online.pdf

Session 3 – Early Intervention and Resolution
US: Dodd-Frank Wall Street Reform and Consumer Protection Act
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h4173enr.txt.pdf

EU: Crisis Management
http://ec.europa.eu/internal_market/bank/crisis_management/index_en.htm

FSB: Crisis Resolution
http://www.financialstabilityboard.org/list/fsb_publications/tid_72/index.htm

EU: New Supervision Architecture
http://ec.europa.eu/internal_market/finances/committees/index_en.htm

EU: Competition Policy
http://ec.europa.eu/competition/recovery/index.html

EU: Deposit Guarantee Schemes
http://ec.europa.eu/internal_market/bank/guarantee/index_en.htm

EU: Investor Compensation Scheme
http://ec.europa.eu/internal_market/securities/isd/investor_en.htm

Gordon, Jeffrey N. and Muller, Christopher, Avoiding Eight-Alarm Fires in the Political Economy of Systemic Risk Management (March 26, 2010). Columbia Law and Economics Research Paper No. 369; ECGI - Finance Working Paper No. 277/2010. Available at SSRN: http://ssrn.com/abstract=1553880

Further reading - SEC documents

Proxy access

Final Rule - Facilitating Shareholder Director Nominations
http://www.sec.gov/rules/final/2010/33-9136.pdf

Concept Release on the US Proxy System
http://www.sec.gov/rules/concept/2010/34-62495.pdf

Enhanced disclosure requirements about risk, compensation and corporate governance

Final rule – Proxy Disclosure Enhancements
http://www.sec.gov/rules/final/2009/33-9089.pdf

Credit rating agencies

SEC Measures to Further Strengthen Credit Rating Oversight
http://www.sec.gov/news/press/2009/2009-200.htm


Further reading - IOSCO documents

Corporate Governance

Protection of Minority Shareholders in Listed Issuers, Report of the Technical Committee of IOSCO http://iosco.org/library/pubdocs/pdf/IOSCOPD295.pdf

Credit rating agencies

The Role of Credit Rating Agencies in Structured Finance Markets http://www.iosco.org/library/pubdocs/pdf/IOSCOPD270.pdf

Code of Conduct Fundamentals for Credit Rating Agencies (Revised 2008) http://www.iosco.org/library/pubdocs/pdf/IOSCOPD271.pdf

Disclosure

Disclosure Principles for Public Offerings and Listings of Asset-Backed Securities
http://iosco.org/library/pubdocs/pdf/IOSCOPD318.pdf


List of relevant Dodd-Frank Act Provisions

· Section 951 – Shareholder vote on executive compensation disclosures

· Section 952 – Compensation committee independence

· Section 953 – Executive compensation disclosures

· Section 954 – recovery of erroneously awarded compensation

· Section 956 – Enhanced compensation structure reporting

· Section 972 – Disclosures regarding chairman and CEO structures
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h4173enr.txt.pdf


Further information
For further information and any questions regarding CLE, please contact: Sallie C. Locke at Columbia Law School. Email: slocke@law.columbia.edu