Responsibility of Directors of Financial Institutions

Schwarcz, Steven L.; Jones, Aleaha; Yan, Jiazhen

Responsibility of Directors of Financial Institutions

Forthcoming chapter in CORPORATE GOVERNANCE OF FINANCIAL INSTITUTIONS: LAW, CONDUCT, AND CULTURE (Danny Busch, Guido Ferrarini, & Gerard van Solinge, eds., 2018, Oxford University Press)

Duke Law School Public Law & Legal Theory Series No. 2018-23

27 Pages Posted: 27 Feb 2018

See all articles by Steven L. Schwarcz

Jiazhen Yan

Duke University, School of Law, Students

Date Written: February 26, 2018

Abstract

This chapter examines the governance responsibilities of directors of financial institutions in the United States and worldwide. Part A of the chapter first reviews, as background, the duties generally applicable to directors of firms, including financial institutions. Part B then compares the special responsibilities of directors of financial institutions, including certain responsibilities created in the aftermath of global financial crisis. Finally, Part C enquires more normatively about whether — and if so, how — financial institution governance should be improved to further reduce excessive risk-taking and protect the public against systemic economic harm.

Keywords: corporate governance, financial institutions, financial crisis, risk

Suggested Citation: Suggested Citation

Schwarcz, Steven L. and Jones, Aleaha and Yan, Jiazhen, Responsibility of Directors of Financial Institutions (February 26, 2018). Forthcoming chapter in CORPORATE GOVERNANCE OF FINANCIAL INSTITUTIONS: LAW, CONDUCT, AND CULTURE (Danny Busch, Guido Ferrarini, & Gerard van Solinge, eds., 2018, Oxford University Press); Duke Law School Public Law & Legal Theory Series No. 2018-23. Available at SSRN: https://ssrn.com/abstract=3130115