Federal Interventions in Private Enterprise in the United States: Their Genesis in and Effects on Corporate Finance Instruments and Transactions
Joan MacLeod Heminway
University of Tennessee College of Law
June 1, 2010
Seton Hall Law Review, Vol. 40, No. 4, 2010
University of Tennessee Legal Studies Research Paper No. 138
In response to U.S. corporate failures involved in the current global financial crisis, traditional corporate finance vehicles and tools were widely used in new ways and for new purposes. Of course, one object of the U.S. government’s investment and intervention in, and exercise of influence over, private enterprise during the crisis was to provide for or ensure the provision of adequate capital funding. But its investment, intervention, and influence also represented a new way to oversee and otherwise regulate key business enterprises in the financial services and automotive sectors. This Article reviews certain aspects of the use of preferred stock, bankruptcy-related proceedings, and mergers and acquisitions in connection with the government’s recent, crisis-mode interventions in private enterprise. Further, it analyzes corporate finance aspects of these exploits and highlights potential effects of these activities on corporate finance instruments, transactions, and legal practice.
Number of Pages in PDF File: 34
Keywords: corporate finance, preferred stock, bankruptcy, mergers, acquisitions, financial crisis, private enterprise, legal practice, Section 363
JEL Classification: G18, G32, G38, H59, K22, L19, M00, P19, P43
Date posted: February 2, 2011 ; Last revised: February 24, 2011
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