The Law on Corporate Governance in Banks
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The Law on Corporate Governance in Banks

Iris H.-Y. Chiu, Michael McKee, Anna P. Donovan, Rod Edmunds, Andreas Kokkinis, John Lowry, Marc T. Moore and Arad Reisberg

Corporate governance in financial institutions has come under the spotlight since the banking crisis in the UK in 2008-9. In many respects, the banking business raises unique problems for corporate governance that are not found in other corporate sectors. The Law on Corporate Governance in Banks is the first work to provide a detailed survey and practical examination of key topical issues in the corporate governance of banks and financial institutions, including governance structure, collective board responsibility, directors’ liability, shareholders, and risk management. Combining the insight and expertise of leading corporate lawyers in the field with rigorous academic analysis, the book unpicks and clarifies the legal issues that confront corporate and banking law practitioners when advising banks and financial institutions.
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Arad Reisberg


With the financial crisis came a renewed interest in short-termism and its negative implications for growth and development in general, and on equity markets in particular. The responses ranged from independent reviews and public policy recommendations to private sector-led initiatives. These provide solid evidence for a growing consensus on the need to strike an appropriate balance between short-termism and long-termism. One of the first things Marissa Mayer did as CEO of Yahoo was remove the stock ticker from the homepage of Backyard, the company’s internal website. The reason, according to those who have interacted with her, is that she believes employees should be more focused on creating better products and services than on corporate finances. Whether this is a sign that companies are shifting from the prevailing sentiment (i.e. that a company’s primary goal is to maximise shareholder value), to a more stakeholder approach, is still open to question. ‘Why,’ askes Unilever’s Paul Polman in an interview with Guardian Sustainable Business, ‘would you invest in a company which is out of synch with the needs of society, that does not take its social compliance in its supply chain seriously, that does not think about the costs of externalities, or of its negative impacts on society?’ The answer, most likely, lies in the priorities of the businesses of today: bottom line returns and an allegiance to the interests of shareholders. In the 1960s the American psychologist,Walter Mischel, conducted a series of experiments on the drivers of delayed gratification.

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