Stanley Longhofer

(Revised) In this paper, we consider the role of statistical analysis in fair-lending compliance examinations.

In this article we provide a rationale for bankruptcy law that is based on the conflicts among creditors that occur when a debtor’s liabilities exceed its assets.

In this paper we make two contributions toward a better understanding of the causes and consequences of discrimination in credit markets.

The idea that banks exist to reduce the costs of monitoring is central to modern theories of financial intermediation.

Violations of the absolute priority rule (APR) are commonplace in private workouts, formal business reorganizations, and personal bankruptcies.

That a firm’s initial equity holders often emerge from Chapter 11 bankruptcy proceedings with more value than the absolute priority rule would suggest is now a generally accepted fact.

Violations of the absolute priority rule (APR) are commonplace in private workouts, formal business reorganizations, and personal bankruptcies.

Corporate finance folklore tells us existing proportionate priority and absolute priority rules in bankruptcy have evolved in order to eliminate inefficiencies which result when lenders rush to retrieve their assets from a firm in financial distress.

Fair-lending issues have gained new prominence over the course of the last decade.

Whether lenders discriminate against minority applicants is a long-standing question that has vexed regulators, bankers, and policymakers alike.

Last April, the House of Representatives overwhelmingly passed the Homeowners Insurance Protection Act (H.R. 607).

It has now been nearly four years since researchers at the Federal Reserve Bank of Boston released their groundbreaking study on residential mortgage lending patterns in that city.

Racial justice is a fundamental social goal in the United States, making enforcement of fair lending laws an important function of the Federal Reserve and other regulators.