One of the hallmarks of the United States Bankruptcy Code is that debtors can receive discharges of their unsecured debts, and the effects of the discharge are shouldered by the debtor’s unsecured creditors in pro rata fashion. However, not all debts are dischargeable; for example, taxes or customs duties cannot be discharged, nor can debts…
Category: Blog Articles
Pricing Algorithms: Are Real-Time Pricing Services Utilized by Online Retailers Anti-Competitive?
Online retailers are increasingly using pricing algorithms to set their online prices. The advanced algorithms are self-learning and automatically compare competitor prices and customer demand to determine prices.1 The service allows companies to set their own preferences, which customizes the algorithm to their needs.2 Because these algorithms are complex and expensive to produce, the service…
The Legality of the AIG Lawsuit
After seven years since the controversial $85 billion bailout of AIG, the debate over the legality of the bailout is again rearing its ugly head. This post will cover the history of the bailout, a short explanation of the recent suits related to the bailout, and a summary of the vast legal opinions surrounding these…
Playing the Sports Market
Fans of fantasy sports who want to turn their fandom into real life may now have the chance. Sort of. Fantex, an investment company and trading platform, now offers the opportunity to invest in the future earnings of athletes.1 Here’s how it works: an athlete registers with Fantex for an Initial Public Offering (I.P.O.), where…
From Greening to Greenback: How Walmart’s Sustainable Food Initiative Can Increase Profits
Walmart has launched a new green initiative “to create a more sustainable food system,” which it seeks to implement through “four key pillars”:1 Reduce “True Cost” of Food: Walmart not only pledges to “provid[e] everyday low costs for customers.”2 Furthermore, it aims to reduce the “environmental impact of agricultural practices” by working with and promoting…
An Introduction to Municipal Bankruptcy
On July 18, 2013, the city of Detroit, Michigan declared bankruptcy.1 The city’s debt stood at $18.5 billion, more than four times greater than any other municipal bankruptcy since the modern bankruptcy code was adopted by congress.2 Despite the magnitude of the economic and social impacts of municipal bankruptcy, the topic is not diffusively understood….
Obama’s Inversion Rules on the Cusp of the House and Senate Elections can be Devastating to the Bigger Problem of Corporate Tax Reform
Barack Obama has been proposing corporate tax reform for a few years now.1 Democrats and Republicans agree that corporate tax reform is needed, but Democrats are reluctant to lower the rate without removing tax breaks and Republicans do not want the tax breaks to end. Washington is not moving quickly, if at all. The House…
Major League Soccer’s Single-Entity Structure: Time to Go?
In an August interview with the Washington Post, LA Galaxy head coach Bruce Arena had this to say of the league’s recent handling of his attempt to sign U.S. Men’s national team player Sacha Kliejstan: “We had a trade in place. We had budget room and space to be able to do it. We had…
The Return of the Hostile Takeover
When looking at the past several months, it is clear that unsolicited bids are on the rise and the wars that ensue are far from pretty. This past April, Endurance Specialty Holdings made a public offer for Aspen Insurance Holdings after Aspen “refused to engage at all” to friendly negotiations.1 Up until late May, Pfizer…
For Whom The Bond Tolls: Argentina’s New(er) Debt Crisis
Once again Argentina finds itself in dire capital straits as it is embroiled in a debt holdout battle with a group of American banks and hedge funds.1 Debt defaults aren’t new for Argentina – the country has defaulted eight times since 1828 – with its most recent default stemming from a previous default in 2001.2…