Professor Voices » Morin Center for Banking and Financial Law

Bernanke to offer outlook on U.S. economy

Jo Breiner — Tue, 07 Jun 2011 14:18:39 +0000

Federal Reserve chairman Ben Bernanke is scheduled to comment later today on the U.S. economic outlook. Boston University School of Law professor Cornelius Hurley is the director of BU’s Center for Finance, Law & Policy (formerly the Morin Center for Banking and Financial Law) and former counsel to the Fed Board of Governors. He is available to offer commentary, insight, and analysis on Chairman Bernanke’s comments.

Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu, Twitter: @ckhurley

Bernanke, other regulators to brief Congress on financial revamp

Jo Breiner — Thu, 12 May 2011 13:14:31 +0000

Federal Reserve Chairman Ben Bernanke and other regulators will testify today before the Senate Banking Committee. In testimony prepared for the hearing, Bernanke says the Fed will propose new rules later this summer that will protect the economy from another meltdown of the financial system. Boston University law professor Cornelius Hurley is the director of the Center for Finance, Law and Policy (formerly the Morin Center for Banking and Financial Law) offers the following comments:

“Today’s Senate testimony on “too big to fail” proves that Treasury and the bank regulators do not grasp the essence of the bailout problem occasioned by the random events during the Panic of 2008.

“Market expectations confer a taxpayer subsidy on systematically significant firms. Yet, the bureaucratic jungle created by Dodd-Frank only serves to enhance and expand that subsidy. The law and its consequent regulations distort the semblance of free markets.

“Dodd-Frank addresses too big to fail by conjoining the interests of the government with those of private firms. It is this “stealth nationalization” of the U.S. banking system that Congress should be investigating and that should rank high on the list of issues to be discussed during the ’12 election cycle.”

Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu, Twitter @ckhurley

Fed chairman Bernanke to hold press conference

Jo Breiner — Tue, 26 Apr 2011 13:26:37 +0000

In an unusual move, Federal Reserve Chairman Ben Bernanke will hold a press conference to answer questions about decisions made by the central bank. Bernanke will speak with reporters following the conclusion of tomorrow’s policy meeting. Boston University School of Law professor Cornelius Hurley is director of BU’s Center for Finance, Law & Policy (formerly the Morin Center for Banking and Financial Law) and a former assistant general counsel of the Board of Governors of the Federal Reserve System. In an interview with the Boston Herald, Hurley said “the orchestrated but unpredictable media moment will put Bernanke in a difficult spot.”

“Never mind the fastballs and curveballs from the reporters – just the obvious questions will be tough.

“I think at the end of the day Bernanke is in a box. If he says anything meaningful – that is, if the markets react to it – then he’s made a mistake. But if it’s typical Fed pablum, then everyone will wonder, why then did they even have this.”

Contact Cornelius Hurley for additional comments at 617-353-5427, ckhurley@bu.edu, Twitter: @ckhurley

Goldman Sachs releases report on changes in business practices

Rebecca Loya — Tue, 11 Jan 2011 13:43:35 +0000

Goldman Sachs has released a report which sets force changes in the way it will do business. Law professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law, sees the changes as a positive move.

“Goldman’s plan to take the creation of structured financial products out of the hands of traders and give that responsibility solely to investment bankers is a positive move. The next step for Goldman, in burnishing its tarnished reputation, should be to ensure that complex products it creates are understood by their creators, by Goldman’s directors and regulators, and by its customers.”

Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu