20 | April 11
August 31, 2001
David Kopel of the Heartland Instute has recently
published Antitust After Microsoft: The Obsolescence
of Antitrust in the Digital Age.
- In a letter in
Financial Times, Practice Group member Mark Nance responds:
"Sir, With reference to your editorial
"Busted banks" (June 7): the only way to create a vigorous
and viable banking sector in Japan is for the government to bite
the bullet, recognize the losses in the insolvent institutions
and return them to the private sector. Nationalizing insolvent
banks distorts the marketplace, does nothing to remove overcapacity
or get new funds flowing into the economy and further delays dealing
with problem loans. The delays in recognizing the losses simply
mean that they will be larger when the day of reckoning arrives.
As for "propping up solvent banks"
with government investment, the devil is in the detail. If they
need propping up, they are probably not really solvent. If they
are truly solvent, the "propping" should at most consist
of regulatory forbearances (for example, allowing them to operate
with lower capital levels). Forbearances themselves, however,
are short-term solutions because they tend to come with a price:
there is a tendency for these banks to act as if they were nationalized,
which creates some of the same problems outlined above. Again,
a far better solution is to force actions to come into compliance
with regulatory requirements."
Mark Nance, General Counsel, Pathfire Inc.
US Copyright: The Financial Times Limited
- The GAAP Gap:
Corporate Disclosure in the Internet Age
by Robert E. Litan and Peter J. Wallison
AEI-Brookings Joint Center for Regulatory Studies
Annual corporate financial disclosure statements are becoming
less relevant and less useful to customers and investors, and
his book addresses the problems associated with this issue. The
authors argue that the gap in GAAP generally accepted accounting
principles, or the standards, created in the 1930s, on which corporate
financial statements are based is that the New Economy
has redefined what information consumers and investors need. They
suggest a new framework for financial disclosure, using new data,
such as the cost of acquiring or retaining one customer as well
as utilizing Internet technology. CONTACT: http://www.aei-brookings.org
- The National
Legal Center is sponsoring a conference on May 15-16, 2001 in
Washington, DC. This exclusive forum, called the General Counsel
Briefing, is designed specifically for top business law attorneys.
Keynote speakers include Senator Orrin G. Hatch, Chairman of the
Senate Judiciary Committee, and Theodore B. Olson, Nominee for
Solicitor General of the United States.