WashU Expert: Puerto Rico’s bankruptcy and the municipal bond market

WashU Expert: Puerto Rico’s bankruptcy and the municipal bond market

Puerto Rico filed for bankruptcy protection May 3, the largest-ever American municipal debt restructuring in history. As the U.S. territory seeks forgiveness in $73 billion to assorted creditors, an expert at Washington University in St. Louis says the situation should serve as a dire wake-up call to the municipal bond market.

WUSTL law professor warns about tinkering with bankruptcy code

Bankruptcy expert Daniel L. Keating, JD, professor of law at Washington University in St. Louis, is warning policymakers that any tweaks to the bankruptcy code could have unintended consequences and do little to improve the system. The ABI (American Bankruptcy Institute) Commission to Study the Reform of Chapter 11 is collecting input and will prepare recommendations for Congress in coming months.

Choosing an incentive for good work so everyone gains: stocks or options?

Stock options or pure stock — what’s the trade-off?In recent years, the practice of motivating CEOs and managers with stock options rather than pure stock has been linked to corruption and fraud. But companies shouldn’t fear the option, according to two professors in the Olin School of Business at Washington University in St. Louis. Moving away from stock options as a way to reward good work may be a bad business move. The professors argue that in most cases stock options provide better incentives to motivate employees and they’re less expensive for the company to issue. At the same time, the researchers found that if a company is just starting out or facing possible bankruptcy, then stocks are your best bet.

Consequences of corporate failure to be discussed at the F. Hodge O’Neal Corporate and Securities Law Symposium at the School of Law April 2

WarrenThe United States’ recent economic slowdown has been punctuated by some of the largest bankruptcies in history, including Enron and WorldCom. Leading academics and prominent practitioners will examine the fallout of these bankruptcies at the F. Hodge O’Neal Corporate and Securities Law Symposium April 2 at the Washington University School of Law.