NATO and the environment: the committee on the challenges of modern society

Launched with considerable fanfare in 1969, the Committee on the Challenges of Modern Society (CCMS) was supposed to bring new life to NATO by both re-energising public support and engaging with a variety of themes, issues and partners well beyond the alliance’s traditional scope. The first aim of this article is to go beyond the careful media operation that surrounded the launch of the CCMS and to examine the scepticism and resistance of some European partners, particularly the British. The second aim is to demonstrate that NATO started to think in terms of crisis management, disaster relief and environmental disasters well before 1989. The sheer military strength of the alliance and of its partners did remain central – and notably came back to the forefront in 1979 – but the alliance did start to see itself as a geopolitical player and to consider engagement beyond its strictly defined geographical area as early as 1969.

Assessing Dodd Frank Effects on banking capital structure and Banker´s Pay structure

The systemic financial crisis that started in 2008 in the United States had some severe effects in the economic activity and required the bailout of financial institutions with the use of taxpayer’s money. It also originated claims for stronger regulatory framework in order to avoid another threat in the financial market. The Dodd Frank Act was proposed and approved in the United States in the aftermath of the crisis and brought, among many other features, the creation of the Financial Stability Oversight Council and the tougher inspection of financial institutions with asset above 50 billion dollars. The objective of this work is to study the causal effect of the Dodd Frank Act on the behavior of the treatment group subject to monitoring by the Financial Stability Oversight Council (financial institutions with assets above 50 billion dollars) regarding capital and compensation structure in comparison to the group that was not treated. We use data from Compustat and our empirical strategy is the Regression Discontinuity Design, not usually applied to the banking literature, but very useful for the present work since it allows us to compare the treatment group and the non-treatment group in the year of the enactment of the law (2010). No change of behavior was observed for the Capital Structure. In the Compensation Schemes, however, a decrease was found in the item other compensation for CEOs and CFOs. We also performed a robustness check by running a placebo test on the variables in the year before the law was enacted. No significance was found, which supports the conclusion that our main results were caused by the enactment of the DFA.