Tuesday, 18 May 2010

The Impossible Trick

Occasionally we feature items that are slightly different from the norm...

(Thanks to New Scientist)

With a hat tip to Derren Brown, the New Scientist reports the winner of the "2010 Best Illusion of the Year Contest".

How do those balls roll uphill? Watch the video below to see how gravity is defied...



[Apologies for the sponsor ads, but they are short]
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Tuesday, 11 May 2010

Philosophical Foundations of Law and Finance - 52nd Weekly Meeting

Dear all

At the 52nd session of the Philosophical Foundations of Law and Finance on Friday 14 May 2010, from 6.00 to 7.30pm, in room 5.16, 309 Regent Street (University of Westminster), Mr Andrea Calvi will give a lecture on “Rome I and II Regulations: the Impact of Recent Developments in Conflict of Laws (in Contract and Tort) over Financial Intermediation”

Mr Calvi is a partner of Loiacono e Associati, and a leading expert in complex financial litigation in Italy. His talk will discuss the ‘European international private law revolution’ taking us through the EU regulatory framework created by the EC Treaty, Rome I and Rome II Regulations on the law applicable to contractual and non-contractual obligations. Mr Calvi will argue that the EU institutions, by regulating the conflicts of laws, have followed Constantine’s strategy when he institutionalized Christianity within the Roman Empire: “if you cannot fight an enemy, make him your friend”.

Mr Calvi consequently identifies the potential and limits of the EU regulation and analyses in particular the case of financial intermediation. His lecture will deal with questions such as: against a derivative contract governed by English law: (i) What if a Swedish municipality opposes ex post its legal incapacity under its own administrative law to execute derivative transactions? (ii) What if an Italian middle-size bank claims a breach of Continental European bona fide before an English Court that is familiar with caveat emptor? (iii) What if that contract would be eligible to claw back under the law governing the insolvency proceeding, but not under its governing law?

All roads, after the seminar, lead to Vapiano (19-21 Great Portland Street, W1W 8QB) for Italian-style refreshments.

Furthermore, we would like to invite you to join the Linkedin group “Philosophical Foundations of Law and Finance”. You can access the group at http://www.linkedin.com/groups?homeNewMember=&gid=3034190&trk=eml-grp-sub (for any enquiry please email Laura Niada at l.niada@my.westminster.ac.uk)

See you on Friday!
Joe and Laura
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Thursday, 6 May 2010

Philosophical Foundations of Law and Finance - 51st Weekly Meeting

Dear all

The 51st meeting of the Philosophical Foundations of Law and Finance on Friday 7 May 2010, from 6.00 to 8.00pm, in room 5.16, 309 Regent Street (University of Westminster) will deal with globalisation and exceptionality in the financial regulation.

It is obvious that Goldman is losing the public relations war and that Blankfein should lose his job as a matter of answering the public call for blood. When the Financial Reform Bill passes with the Volcher rule, GS and the other Wall St investment banks will continue in much stronger fashion. The regulatory cut off line of $50bn with the FDIC managing banks below and the Fed Reserve managing those above means that big banks (not taxpayers!) will be "protected" by a tax which is triflingly meaningless in comparison to the size of trading. The regulators have forgotten the first lesson of Plato's Laws – absolute population size matters.

When we study law without philosophy we are undertaking a service for the dark discipline of destroying the many-leaves of inner-life. Beware of the media mandating the categories of our subjectivities! On Friday, the Philosophical Foundations of Law and Finance suggest two options for enlightening the legal debates on financial regulation.

We can start reading neo-Marxists like Hardt and Negri (2000, Empire, Harvard University Press. Available at http://www.angelfire.com/cantina/negri/) to appreciate the "meanings" of global regulations as instruments of controlling the inner subjectivities of biopolitics. Also, systemic risk from a neo-global Empire perspective is enforced by the exceptionality of regulations – that is, in regulations being justified in the name of these so-called "emergency situations" whose magnitude and probability are mediagenically amplified by social network gossip. We cannot extract ourselves from this chat once we get in. Systems communication a la Luhmann is that the power projected through the media organises, re-orders, and sets out risk symmetries that trap us all. The Greek tragedy and the Goldman farce re-order our thoughts to bow to the communicative power of Empire. We should shelter ourselves because our outer material world could be a lot better as our inner world becomes more narrowly sliced and diced by digital communication systems.

Alternatively, we can get a great introduction to the concept of globalization by beginning reading Dostoevsky’s Grand Inquisitor (http://www.online-literature.com/dostoevsky/2884/)

Either way, we shall gather at Vapiano (19-21 Great Portland Street, W1W 8QB) from 8pm onwards.

See you on Friday!
Joe and Laura
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Saturday, 1 May 2010

How Do Law Professors Mark Exams?

At this time of year the law school likes to put out a public information video so that students can understand and appreciate the trials of exam grading. Please watch and learn.



With thanks to LSU and LegalBlogWatch
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Tuesday, 27 April 2010

Lawyers in Practice: Ethical Decision Making in Context at the Baldy Center, University at Buffalo

(Origami buffalo thanks to ORI_Q)
I got back from Buffalo, New York, yesterday as my plane flew out being chased by lightning and thunder storms that were the tail edge of the tornadoes raging over the US.


My reason for being at the Baldy Center, University at Buffalo Law School, was because I had been invited to contribute a paper on transnational lawyering by Lynn Mather and Leslie Levin. The conference had the aim of: examining:
How do lawyers resolve ethical problems in the everyday context of law practice? What issues commonly emerge in different practice specialties and what are the norms and rules for resolving them? This is the first conference that focuses on the empirical research on lawyers' work and their actual decision making in a wide variety of practice contexts.
Participants will examine the work of lawyers in a number of practice areas, identifying one or more ethical issues that arise in the practice area. Scholars will present their research, embedding lawyers' decision making in both the professional world of ethical codes and the social and economic setting of the workplace.
It was an intensive day including papers on solo or small firm lawyers:
  • plaintiffs' lawyers--professional norms and the need to generate business
  • divorce lawyers--client grievances and client relationships
  • immigration lawyers--the lying client
While these presentations often involved cases of personal challenges, the next session moved to a seemingly more remote sphere of the corporate practice. Papers included:
  • practice groups in large law firms--embedded ethics in practice groups
  • corporate litigators--ethics in discovery
  • In-House lawyers--ethics and allegiances
  • Transnational lawyers--conflicts and identification of client
The organizational context was further explored with reference to specialist lawyers:
  • tax lawyers--clients' interests or moral stewardship?
  • securities lawyers--guardians of the public realm?
  • patent lawyers--changing roles in defensive patent applications
Finally, we looked at public interest lawyers:
  • legal services lawyers--in context of social work
  • ethics of law reform lawyering--top down or bottom up?
You can read the abstracts of the papers on the Baldy website. The presentations contained a wide variety of empirical and theoretical approaches including ethnography, interviewing, statistical analysis, philosophical investigation among others. Theoretically, the papers considered the problems of attempting to capture the nature of lawyer-client relationships in shifting contexts; how do so many different types of lawyer fit within under the umbrella of the "legal profession"? what did it mean to talk in terms of a legal profession? how were ethics and regulation being balanced against each other? and how did this operate in a globalized world?

Plenty of questions and issues. We now are redrafting our papers we hope in a more integrated way that will work in the collection. We want this book to be of benefit to students as well as fellow academics and lawyers. Students often find their professional responsibility classes bear little resemblance to practice. This is a serious attempt to bring the dilemmas of practice to the student who can begin to comprehend the complexities of modern legal practice in its variety of forms.

________________________________________________

I had an extra day in Buffalo so my hosts, Lynn and Mike Mather, took me to see Niagara Falls. We get blase about the wonders of the world because of our constant exposure to them. I've made this mistake before in connection with the pyramids at Giza and the Taj Mahal. I almost made it again.

The Falls are big and very noisy. But as you approach them you hardly notice they are there. It's only when you look at them head on you see the long drop, the relentless pressure of water being squeezed into a smaller gap, and the mist that nearly obscures everything.

 (I never saw the owner of the shoe...)

I hadn't realized there were two sets of falls. And that you can take a boat trip around them. It's very wet as you can see from the blue people. Their raincoats are wishful thinking.

This is the second falls.


Standing below this makes me wonder who first went over by mistake...and what they were thinking.

And here are my hosts, Lynn and Mike Mather.


They took me around Buffalo itself which has some terrific architecture, especially from the time of Louis Sullivan. (See his Prudential Building.) Chicagoans will know what I mean. Sitting on the edge of Lake Erie it has at times a coastal feel which is heightened when you can drive across the border to Canada next door.
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Tuesday, 20 April 2010

Philosophical Foundations of Law and Finance - 50th Weekly Meeting

Dear all

To mark the 50th session of the Philosophical Foundations of Law and Finance, to be held on Friday 23 April 2010, from 6.00 to 8.00pm, in room 5.16, 309 Regent Street (University of Westminster), we will tackle with the uncanny theme: "Fraud in The Heart of Finance and Religion"

We will focus on a recent filing by the US Securities Exchange Commission against Goldman Sachs and a 28 year vice-president named Fabrice Tourre for securities fraud.

Although we never ask participants to prepare for class, you may be curious to read the complaint: http://www.sec.gov/litigation/complaints/2010/comp21489.pdf
We also recommend Kevin M. LaCroix blog: http://www.dandodiary.com/2010/04/articles/subprime-litigation/ok-so-the-sec-sued-goldman-sachs-now-what/
Good legal analysis can be found at: http://dealbook.blogs.nytimes.com/2010/04/16/goldman-fraud-case-holds-risks-for-both-sides/

We will attempt to read the complaint together and comprehend a bit of US securities law. If we have time or depending on the inclination of the group, we shall then turn to the Grand Inquisitor, the 26-page classic within the Brothers Karamazov by Dostoevsky. You can find an extract at http://www.online-literature.com/dostoevsky/2884/

The most zealous and frequent attendees to the Philosophical Foundations of Law and Finance may be surprised to see how group theory applies to "Fraud in The Heart of Finance and Religion": homomorphism, epimorphism, monomorphism and isomorphism will be defined and used for purposes of abstracting comparisons. (It's all in the mapping of Mx.) In a system of law, why is truth isomorphic to fraud? Only a group theory can bring them together rigorously without sounding sanctimoniously Kantian. Also, we will again emphasize the perception of seeing "devils and and angels" simultaneously everywhere for any given decision at a given time.

We shall celebrate our 50th at Vapiano (19-21 Great Portland Street, W1W 8QB) from 8pm onwards.

See you on Friday!
Joe and Laura
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The Law Firm Has Defaulted on Its Bonds?



Anthony E. Davis of Hinshaw and Culbertson LLP in New York sent me details of the $125 million bond issue by Dewey and LeBoeuf, which is over-subscribed. Now in the US there is nothing like the Legal Services Act 2007 that enables external investment in law firms. In fact the professional rules expressly prohibit non-lawyers having an interest in a law firm.

Anthony then asked: "Can somebody explain to me why this is different (or should be differently regulated) from raising equity capital?" (ie. as envisaged in the Legal Services Act.)


Well, I suppose the obvious answer is there's no equity. But that's not satisfactory. Imagine if the firm defaulted and had to be restructured. Who would own what, then? Would there be a debt-for-equity swap? Hardly.

The bondholders must be very confident. But then only a handful of firms have gone bankrupt...recently.

I think Anthony is right, Dewey and LeBoef has put itself in hock to outsiders. But as one colleague has said, "Debt be debt and equity be equity. Would it be any different if a firm defaulted on a loan?"
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