What Scheme Liability Really Would Have Deterred

Posted by John Carney, Jan 16, 2008, 1:44pm

It bothers the legal scholars to see the court make decisions based on policy rather than legal doctrine but we couldn't help but smile when we read Justice Anthony Kennedy noticing that the "scheme liability" scam urged on the court by trial lawyers would likely deter companies from offering securities on U.S. exchanges.

"Overseas firms with no other exposure to our securities laws could be deterred from doing business here," Kennedy wrote in the majority opinion for Stoneridge. "This, in turn, may raise the cost of being a publicly traded company under our law and shift securities offerings away from domestic capital markets."

Maybe it's not properly the court's job to worry about that but it's nice to know that someone is.

0Recommend this! 8Comments
Posted in: Stoneridge

Comments

Posted by , Jan 16, 2008 3:25PM

i say this in here because there is noplace else to post it - rumor that GSE portfolio caps raised by $200 billion

Posted by , Jan 16, 2008 3:37PM

Too long, didn't read.

Posted by Dave Chappelle, Jan 16, 2008 3:37PM

Wishful thinking....

Freddie Mac: Treasury won't back higher Fannie, Freddie conforming loan
limit without broader reform, according to Spokesperson - Reuters

Posted by , Jan 16, 2008 3:47PM

depends who's doing the wishing

but anyway that was the rumor why FNm and Fre spiked 10%

Posted by Hugh, Jan 16, 2008 4:39PM

Carney, this is the most important part of Stoneridge. The more the Feds keep sticking their unwieldy fingers into the game, the quicker we lose our financial dominance. It's good to see that Justice Kennedy took the high road and engaged in a bit of practical reasoning to determine the outcome best for America. Too often the judges throw reality out the window for the sake of abstract and oft-compromised principles.

Posted by anon anon anon, Jan 16, 2008 5:14PM

If you do not know the market, you should not be in the game. All these "music playing must keep dancing" or "had all the fun I can take with investment banking" or "I can pull the trigger" or "I relied on what they said" positions or feelings are make by people (bankers and punters)who should not be in the market. So Sayeth the Court.

Posted by Wowsas, Jan 16, 2008 5:57PM

I'm very happy to see that the strict constructionists of the court are sticking to their principles, and refusing to legislate from the bench, unless it's legislation to overturn the laws of that dastardly FDR.

Posted by , Jan 17, 2008 9:15PM

No offense, but if you don't think it's the Court's job to think about policy arguments, you don't know very much about the Court or advocacy there. Not that you'd want to. It's very boring and nerdy, and inside baseball there is a circle-jerk of some truly epic characters, but yeah. You're still wrong.

Post Your Comment