Guardianship/Conservatorship, June 27, 2014

Guardians and conservators are appointed by the court to make personal and financial care decisions on behalf of another (the “ward”). However, the fact that one has been appointed a guardian or conservator does not mean that their authority to make decisions is necessarily unlimited. Courts are legally obligated to consider the least restrictive alternatives before issuing a guardianship or conservatorship that would grant full decision-making authority.

Government Influence and the Failure of Fannie Mae and Freddie Mac

In 2008 two government-sponsored enterprises, Fannie Mae and Freddie Mac, were placed into conservatorship due to insolvency. The financial bailout of the two publically traded corporations came at the expense of the American tax payer. This study investigates the relationship between direct and indirect government influence and the increasing risk taking of Fannie Mae and Freddie Mac from the late 1990’s through their conservatorship in 2008. As government-sponsored enterprises Fannie Mae and Freddie Mac have many special advantages that other publically traded companies did not possess. These advantages allowed Fannie Mae and Freddie Mac to increase their profitability. Theoretical literature regarding Congress and the bureaucracy suggests that the actions of bureaucrats can be linked to the preferences of Congressional members because bureaucrats are responsive to potential threats or perceived threats from the legislature. This theory is applicable to Fannie Mae and Freddie Mac, and is used to explain why the government was able to directly and indirectly influence the government-sponsored enterprises. Overall this investigation has determined that the United States government pursued a clear mission that determined to increase the availability of housing to all Americans, specifically to low-income and under-served individuals, through the use of the government-sponsored enterprises. Despite this link there is no conclusive data to show that the pursuit of this housing mission led Fannie Mae and Freddie Mac to operate in riskier business segments. This study has also found that motivation regarding profit-seeking and compensation structure provide a more plausible explanation for why the government-sponsored enterprises began to engage in riskier business practices that led to their insolvency.

El modelo de apoyo a las personas con capacidades modificadas judicialmente según Naciones Unidas

Este artículo se basa en una investigación social sobre el sistema de protección jurídica de las personas con algún tipo de discapacidad o en situación de dependencia que se encuentran sometidas a las figuras de tutela o curatela, en aplicación de lo previsto y establecido en el Código Civil Español, en sus artículos 199 y 200, así como en la Ley de Enjuiciamiento Civil. La investigación se plantea como un estudio comparado entre diferentes países de la Unión Europea para ver su adecuación a lo establecido en el artículo 12 de la Convención de Naciones Unidas sobre derechos de las Personas con Discapacidad (en adelante, CDPD) en los procedimientos de incapacitación. Los resultados se analizan sobre la base de modelos técnico-sociales de intervención, los análisis jurídicos y la experiencia adquirida por las Fundación Tutelares de Castilla y León. Se proponen y diseñan algunas alternativas y servicios que pueden mejorar la calidad de vida de las personas adultas incapacitadas judicialmente y el tipo de apoyos que se les puede prestar, de acuerdo a lo establecido en la Convención de Naciones Unidas.

Three Essays in Empirical Asset Pricing

The financial crisis of 2007-2008 led to extraordinary government intervention in firms and markets. The scope and depth of government action rivaled that of the Great Depression. Many traded markets experienced dramatic declines in liquidity leading to the existence of conditions normally assumed to be promptly removed via the actions of profit seeking arbitrageurs. These extreme events motivate the three essays in this work. The first essay seeks and fails to find evidence of investor behavior consistent with the broad 'Too Big To Fail' policies enacted during the crisis by government agents. Only in limited circumstances, where government guarantees such as deposit insurance or U.S. Treasury lending lines already existed, did investors impart a premium to the debt security prices of firms under stress. The second essay introduces the Inflation Indexed Swap Basis (IIS Basis) in examining the large differences between cash and derivative markets based upon future U.S. inflation as measured by the Consumer Price Index (CPI). It reports the consistent positive value of this measure as well as the very large positive values it reached in the fourth quarter of 2008 after Lehman Brothers went bankrupt. It concludes that the IIS Basis continues to exist due to limitations in market liquidity and hedging alternatives. The third essay explores the methodology of performing debt based event studies utilizing credit default swaps (CDS). It provides practical implementation advice to researchers to address limited source data and/or small target firm sample size.