The Congressional Oversight Panel for the Troubled Asset Relief Program (TARP) has issued its final report, and the TARP program is projected to cost much less than forecast. Unfortunately, TARP hasn’t solved the original problem of “too big to fail”. The problem is worse today, and the legislative solution may make things even worse. [More]

In the aftermath of the financial crisis, Congress passed the Dodd-Frank Financial Reform Act, which sought to prevent its repeat. Yet the new House Republican majority is taking aim at a key provision of the law, which sought to give investors more accurate information by holding credit rating agencies legally liable for giving high ratings to low quality mortgage-backed bonds. While there are other ways to ensure accurate credit ratings than enhanced liability, congressional Republicans are removing an imperfect protection without replacing it with anything better. [More]

In May 2009 American President Barack Obama spoke of how an address in the Cayman Islands housed 12,000 companies. Alluding to the possibility of illegal activity, he noted that this location was either the biggest building in the world or “the largest tax scam in the world.” [1] This image of Offshore Financial Centers (OFCs) as havens for wrongdoing is generally held throughout the world.

Recent data indicates that the Cayman Islands holds over 670 billion American Dollars in banking assets from international investors[2]. Because of such statistics, these small islands are considered a global villain, a haven for illegal capital. According to the OECD Harmful Tax Competition: An Emerging Global Issue (1998 Tax Report) jurisdictions that (a) imposes no or only nominal taxes, (b) lacks policy of effective exchange information, (c) lacks transparency and (d) has no requirement of “substantial activity” is identified as a tax haven[3].

A Background Information Brief released by the OECD (Organisation for Economic Co-operation and Development) in March 2010 acknowledged the implementation of the Cayman’s actions towards transparency and information exchange. Despite this report’s recognition of the Caymans, it touched upon only a few of the measures that have been taken by the Cayman Islands in the last few years. These improvements in the Cayman’s internal structure and the regulatory actions taken by the Cayman Islands have enhanced the islands’ status within the international community. The Cayman’s pejorative title as a “tax haven” is, therefore, incorrect.



First, this article will examine the true atmosphere of the Cayman Islands, and how this British territory and the 5th largest banking center in the world is cooperating with the OECD and other jurisdictions by partaking in several Tax Information Exchange Agreements (TIEAs). Second, this article also aims to defend the valuable and important role of international policy distinctions among nations as a pursuit of effectiveness in the financial system worldwide [More]

The recent decision by the Illinois Supreme Court regarding tax exemption for hospitals is troubling for the already volatile and uncertain future of many hospitals that are facing increasing difficulties in the current economic market. The Illinois Supreme Court held that Provena Medical Center in Urbana does not provide enough charity care to qualify for the tax exemption provided for hospitals that care for uninsured and poor patients without generating a profit or collecting fees.[1] The decision has generated significant criticism for relying on old precedent, failing to take into account current economic conditions, and for failing to provide clear guidelines for nonprofit hospitals that want to qualify for tax exemption in Illinois.[2] The implications of this decision while not precisely known can have wide ranging consequences for hospital financing and for access to healthcare for low income and uninsured individuals. What are hospitals required to do to quality for tax exemption in Illinois? What financial implications does this have on nonprofit hospitals? What implications does this have on patients? Will this decision effectively end charitable exemptions for nonprofit hospitals? This article will attempt to briefly outline the issue and provide the possible policy implications of this decision. [More]

In the current financial crisis borrowers are finding it increasingly difficult to access capital for their investments. This is affecting one of the most important industries in our society, health care. Hospitals are a vital part of the health care industry and they are facing especially hard times in today’s economy. It is not a surprise to many people that hospitals are facing financial difficulties. Hospitals have consistently faced financial difficulties even in a good economy. However, the current credit crisis is affecting hospitals more than any other organization because of the high levels of uninsured seeking health care services, low reimbursement rates from Medicaid and Medicare, and staff shortages. Now more than ever before hospitals are facing increasing debt and are unable to gain more capital or refinancing their existing loans because it is more difficult to obtain credit. As a result, hospitals all over the country are filing bankruptcy and closing down. This is having a devastating affect on the access and quality of health care for many Americans. This article will examine why hospitals are facing financial difficulties and propose solutions to the problem by drawing upon examples of hospitals that are performing well in the current economy. [More]

Microcredit Part 2 will explore a possible application of the microcredit system in the United States as well as problems that such an application may encounter and solutions to such issues. [More]

As a result of the reform promised during the latest credit crisis, new rules are coming into effect controlling overdraft protection. This article will examine whether these new regulations address the problems that have been raised regarding overdraft protection, and whether the regulations will be sufficient to appropriately curtail its problematic aspects. Both modern and historical arguments will be considered in examining whether the regulation attempts to resolve the right issues and whether or not it is likely to be effective. [More]

New regulation will come out of the 2008/9 crisis as is common after every major crisis (e.g. 1930’s meltdown and Enron’s falling, among others). What is most important is that such regulation should aim at terminating certain undesired market incentives: those which contributed to the development of the 2008/9 crisis, and the negative ones arising from the bailouts.

Along the path of reform, it is essential to understand that systemic risk, the 2008/9 systemic crisis and the bailouts are three different situations, with different causes and effects. Thus, they can be addressed separately to improve the overall situation, without need to exclusively seek for a unique “magic” solution.

Fine tuning over traditional financial regulation as well as exploring new ideas –such as limiting the size of Too Big To Fail Companies – will be required.


Along the path of reform, it is essential to understand that systemic risk, the 2008/9 systemic crisis and the bailouts are three different situations, with different causes and effects. Thus, they can be addressed separately to improve the overall situation, without need to exclusively seek for a unique “magic” solution. [More]

Part 1 of a 2 part paper discussing the value of mircrocredit and its possible applications in present-day America. In this first section, the reader will be introduced to the basic concepts and principles of microcredit, its history, and possible problems. [More]

This article discusses certain judges’ reluctance in granting deficiency judgments on residential foreclosures. Particularly, the effects categorical refusals to grant such judgments are considered. Potential effects on the lending market and available residential loans are identified addressed. Ultimately, a lack of deficiency judgments may lead to fewer loan products being available to homeowners and/or an increase in interest rates on full-recourse loans. In addition, the need for further research in the area is highlighted, particularly as it relates to the current economic situation. [More]