Business/Corporate Law

“Make no mistake, deposits in the United States are insured whether the law says so or not,” writes Professor Krishnamurthy. “It is time to recognize this reality and adopt explicit and progressive insurance for large deposits.”

“Millions of Americans live one purchase away from emptying their bank account, and they pay a steep price for oversights in account management,” writes Berkeley Law Professor Prasad Krishnamurthy. “Better regulation can stop banks from preying on consumer inattention so that overdrafts and NSF can truly function as a means of emergency credit, at least until better options emerge.”

Prasad Krishnamurthy, a professor at the University of California Berkeley School of Law, favors raising the $250,000 cap to an unspecified amount. Recent decisions by regulators to cushion uninsured depositors from losses effectively render the $250,000 limit moot anyway, he argued.

“Few thought the failure of a midsize regional bank posed a risk to the entire U.S. economy until last month, and it would be reasonable to expect that regulators in the future may lean on the systemic-risk exception in the law to once again justify bailouts,” said Berkeley Law professor Prasad Krishnamurthy.

“Banks and regulators will make mistakes, and banks should be allowed to fail, writes Prasad Krishnamurthy, professor at Berkeley Law.” “We need a system in which shareholders and debtholders bear the cost of failure, depositors are made whole and don’t panic, and banks and depositors pay for the insurance they receive at rates that are proportional to their risk.” 

Berkeley Law Professor Tejas Narechania discusses a study he co-authored which found that judges in the Western District of Texas, Eastern District of Texas and the District of Delaware have higher appeals and reversal rates across the board when their dockets are crowded with patent cases.

UC Berkeley law professor Robert Bartlett said Musk’s way of disseminating corporate news is so far out of the norm that it’s hard to see his tweets as not being very intentional.

“Some students have come to do their LL.M. here because their country is in an earlier phase of developing their technology-related laws and find it helpful to see how the U.S. has approached similar issues,” says Wayne Stacy, executive director at Berkeley Law’s Center for Law and Technology in California. “Other students come from countries where the body of technology law has gone in a different direction than the U.S. and they appreciate learning about the contrast.”

Berkeley Law professor Kenneth Ayotte discusses the way controversial out-of-court deals are influencing Chapter 11 transactions.

“The number one thing they’re going to worry about is the ability to pay back the loans,” said Berkeley Law professor Adam Badawi “Twitter misses a debt payment, that trips a covenant, and the loanholders can come in and say the debt is due right now.”