The impact of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 repo ‘safe harbor’ provisions on investors

References

• Acharya, V. V., T. F. Cooley, M. P. Richardson, and I. Walter. 2010. Regulating Wall Street: The Dodd-Frank Act and the New Architecture of Global Finance (Vol. 608). Hoboken, NJ: John Wiley & Sons.
   Google Scholar
• Adrian, T., B. Begalle, A. Copeland, and A. Martin. 2014. “Repo and Securities Lending.” In Risk Topography: Systemic Risk and Macro Modeling, edited by M. Brunnermeier, and A. Krishnamurthy. Chicago: University of Chicago Press.
   Google Scholar
• Adrian, T., C. R. Burke, and J. J. McAndrews. 2009. “The Federal Reserve's Primary Dealer Credit Facility.” Federal Reserve Bank of New York Current Issues in Economics and Finance 15 (4): 1–11.
   Google Scholar
• Akgiray, V. 1989. “Conditional Heteroscedasticity in Time Series of Stock Returns: Evidence and Forecasts.” The Journal of Business 62 (1): 55–80. doi: 10.1086/296451
   Web of Science ®Google Scholar
• Ali, A., C. Durtschi, B. Lev, and M. Trombley. 2004. “Changes in Institutional Ownership and Subsequent Earnings Announcement Abnormal Returns.” Journal of Accounting, Auditing and Finance 19: 221–248. doi: 10.1177/0148558X0401900301
   Google Scholar
• Armstrong, S. C., E. M. Barth, D. A. Jagolinzer, and J. E. Riedl. 2010. “Market Reaction to the Adoption of IFRS in Europe.” The Accounting Review 85 (1): 31–61. doi: 10.2308/accr.2010.85.1.31
   Web of Science ®Google Scholar
• Ayotte, K., and D. A. Skeel. 2013. “Bankruptcy Law as a Liquidity Provider.” University of Chicago Law Review 80: 1557–1624.
   Web of Science ®Google Scholar
• Baklanova, V., A. Copeland, and R. McCaughrin. 2015. “Reference Guide to U.S. Repo and Securities Lending Markets.” Federal Reserve Bank of New York Staff Reports, Staff Report No. 740.
   Google Scholar
• Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 S. 256 (109th).
   Google Scholar
• Bankruptcy Amendments and Federal Judgeship Act of 1984 H.R. 5174 (98th).
   Google Scholar
• Bankruptcy Reform Act of 2000 H.R. 833 (106th).
   Google Scholar
• Beatty, A., S. Chamberlain, and J. Magliolo. 1996. “An Empirical Analysis of Economic Implications of Fair Value Accounting for Investment Securities.” Journal of Accounting and Economics 22 (1–3): 43–77. doi: 10.1016/S0165-4101(96)00429-6
   Web of Science ®Google Scholar
• Beaver, W. 1998. Financial Reporting: An Accounting Revolution. 3rd ed. Englewood Cliffs, NJ: Prentice-Hall.
   Google Scholar
• Benton, K. J. 2005. “Banks and the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act.” Federal Reserve Bank of Philadelphia Compliance Corner: Fourth Quarter 2005. https://www.philadelphiafed.org/bank-resources/publications/compliance-corner/2005/fourth-quarter/q4cc1_05.
   Google Scholar
• Bernard, L. V. 1987. “Cross-sectional Dependence and Problems in Inference in Market-based Accounting Research.” Journal of Accounting Research 25 (1): 1–48. doi: 10.2307/2491257
   Web of Science ®Google Scholar
• Binder, J. J. 1998. “The Event Study Methodology Since 1969.” Review of Quantitative Finance and Accounting 11: 111–137. doi: 10.1023/A:1008295500105
   Google Scholar
• Bliss, R. R., and G. G. Kaufman. 2006. “Derivatives and Systemic Risk: Netting, Collateral and Closeout.” Journal of Financial Stability 2 (1): 55–70. doi: 10.1016/j.jfs.2005.05.001
   Google Scholar
• Boehmer, E., J. Musumeci, and B. A. Poulsen. 1991. “Event-study Methodology Under Conditions of Event-induced Variance.” Journal of Financial Economics 30: 253–272. doi: 10.1016/0304-405X(91)90032-F
   Web of Science ®Google Scholar
• Bolton, P., and M. Oehmke. 2015. “Should Derivatives Be Privileged in Bankruptcy?” The Journal of Finance 70 (6): 2353–2394. doi: 10.1111/jofi.12201
   Web of Science ®Google Scholar
• Brown, S. J., and J. B. Warner. 1980. “Measuring Security Price Performance.” Journal of Financial Economics 8: 205–258. doi: 10.1016/0304-405X(80)90002-1
   Web of Science ®Google Scholar
• Brown, S. J., and J. B. Warner. 1985. “Using Daily Returns: The Case of Event Studies.” Journal of Financial Economics 14: 3–31. doi: 10.1016/0304-405X(85)90042-X
   Web of Science ®Google Scholar
• Brown, S. J., and M. I. Weinstein. 1985. “Derived Factors in Event Studies.” Journal of Financial Economics 14: 491–495. doi: 10.1016/0304-405X(85)90010-8
   Web of Science ®Google Scholar
• Bushee, J. B., and H. T. Goodman. 2007. “Which Institutional Investors Trade Based on Private Information About Earnings and Returns?” Journal of Accounting Research 45 (2): 289–321. doi: 10.1111/j.1475-679X.2007.00234.x
   Web of Science ®Google Scholar
• Cerbioni, F., M. Fabrizi, and A. Parbonetti. 2015. “Securitizations and the Financial Crisis: Is Accounting the Missing Link?” Accounting Forum 39 (3): 155–175. doi: 10.1016/j.accfor.2014.05.001
   Web of Science ®Google Scholar
• Chandra, R., S. Moriarity, and G. Lee Willinger. 1990. “A Reexamination of the Power of Alternative Return-Generating Models and the Effect of Accounting for Cross-Sectional Dependencies in Event Studies.” Journal of Accounting Research 28 (2): 398–408. doi: 10.2307/2491157
   Web of Science ®Google Scholar
• Chircop, J., P. V. Kiosse, and K. Peasnell. 2012. “Should Repurchase Transactions Be Accounted for as Sales or Loans?” Accounting Horizons 26 (4): 657–679. doi: 10.2308/acch-50176
   Web of Science ®Google Scholar
• Dechow, P. M., A. P. Hutton, and R. G. Sloan. 1996. “Economic Consequences of Accounting for Stock-based Compensation.” Journal of Accounting Research 34: 1–20. doi: 10.2307/2491422
   Web of Science ®Google Scholar
• Dickerson, M. A. 2006. “Regulating Bankruptcy: Public Choice, Ideology, & Beyond.” Washington University Law Review 84 (7): 1861–1905.
   Google Scholar
• Duffie, D. 1996. “Special Repo Rates.” The Journal of Finance 51 (2): 493–526. doi: 10.1111/j.1540-6261.1996.tb02692.x
   Web of Science ®Google Scholar
• Duffie, D., and D. A. Skeel Jr.. 2012. “ A Dialogue on the Costs and Benefits of Automatic Stays for Derivatives and Repurchase Agreements.” University of Pennsylvania Law School Faculty Scholarship. Paper 386. http://scholarship.law.upenn.edu/faculty_scholarship/386.
   Google Scholar
• Dyckman, T., D. Philbrick, and J. Stephen. 1984. “A Comparison of Event Study Methodologies Using Daily Stock Returns: A Simulation Approach.” Jouranl of Accounting Research 22: 1–33. doi: 10.2307/2490855
   Web of Science ®Google Scholar
• Edwards, R. F., and R. E. Morrison. 2005. “Derivatives and the Bankruptcy Code: Why the Special Treatment?” Yale Journal on Regulation 22 (1): 92–121.
   Google Scholar
• Fabrizi, M., and A. Parbonetti. 2015. “CEO Risk Incentives and the Riskiness of Securitisation Transactions in the Financial Industry.” International Journal of Banking, Accounting and Finance 6 (2): 122–150. doi: 10.1504/IJBAAF.2015.077032
   Google Scholar
• FASB. 2000. Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. Connecticut: FASB.
   Google Scholar
• FASB. 2009. Statement of Financial Accounting Standards No. 166 Accounting for Transfers of Financial Assets an Amendment of FASB Statement No. 140. Connecticut: FASB.
   Google Scholar
• FASB. 2013. Transfers and Servicing (Topic 860): Effective Control for Transfers with Forward Agreements to Repurchase Assets and Accounting for Repurchase Financings (Exposure Draft). Connecticut: FASB.
   Google Scholar
• FASB. 2014. Accounting Standards Update No. 2014–11. Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. Connecticut: FASB.
   Google Scholar
• Fleming, M. J., W. B. Hrung, and F. M. Keane. 2009. “The Term Securities Lending Facility: Origin, Design, and Effects.” Current Issues in Economics and Finance 15 (2): 1–11.
   Google Scholar
• Froot, A. K. 1989. “Consistent Covariance Matrix Estimation with Cross-Sectional Dependence and Heteroskedasticity in Financial Data.” Journal of Financial and Quantitative Analysis 24 (3): 333–355. doi: 10.2307/2330815
   Web of Science ®Google Scholar
• Ganduri, R. 2017. Repo Regret? https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2795340.
   Google Scholar
• Gorton, G. 2009. “ Information, Liquidity, and the (Ongoing) Panic of 2007.” National Bureau of Economic Research Working Paper Series, No. 14649. http://www.nber.org/papers/w14649.
   Google Scholar
• Gorton, G., and A. Metrick. 2010. “Haircuts.” Federal Reserve Bank of St. Louis Review 92 (6): 507–519.
   Web of Science ®Google Scholar
• Gorton, G., and A. Metrick. 2012. “Securitized Banking and the Run on Repo.” Journal of Financial Economics 104 (3): 425–451. doi: 10.1016/j.jfineco.2011.03.016
   Web of Science ®Google Scholar
• Greenspan, A. 1998. “ Hedge Fund Operations: Hearing Before the House Committee on Banking and Financial Services”, 105th Cong. 23.
   Google Scholar
• Healy, M. P., and G. K. Palepu. 2001. “Information Asymmetry, Corporate Disclosure and the Capital Markets: A Review of the Empirical Disclosure Literature.” Journal of Accounting and Economics 31 (1–3): 405–440. doi: 10.1016/S0165-4101(01)00018-0
   Web of Science ®Google Scholar
• Hördahl, P., and M. R. King. 2008. “Developments in Repo Markets During the Financial Turmoil.” BIS Quarterly Review (December), 37–57.
   Google Scholar
• Infante, S. 2013. “ Repo Collateral Fire Sales: The Effects of Exemption from Automatic Stay.” FEDS Working Paper No. 2013–83. http://ssrn.com/abstract=2357664.
   Google Scholar
• Jain, P., and Z. Rezaee. 2006. “The Sarbanes-Oxley Act of 2002 and Capital-Market Behavior: Early Evidence.” Contemporary Accounting Research 23 (Fall): 629–654. doi: 10.1506/2GWA-MBPJ-L35D-C4K6
   Google Scholar
• Kolari, J. W., and S. Pynnönen. 2010. “Event Study Testing with Cross-Sectional Correlation of Abnormal Returns.” Review of Financial Studies 23: 3996–4025. doi: 10.1093/rfs/hhq072
   Web of Science ®Google Scholar
• Krishnamurthy, A. 2010. “How Debt Markets Have Malfunctioned in the Crisis.” Journal of Economic Perspectives 24 (1): 3–28. doi: 10.1257/jep.24.1.3
   Web of Science ®Google Scholar
• Krishnamurthy, S., J. Zhou, and N. Zhou. 2006. “Auditor Reputation, Auditor Independence, and the Stock-Market Impact of Andersen’s Indictments on Its Client Firms.” Contemporary Accounting Research 23 (2): 465–490. doi: 10.1506/14P1-5QRR-1NAF-3CE1
   Web of Science ®Google Scholar
• Leftwich, R. 1980. “Market Failure Fallacies and Accounting Information.” Journal of Accounting and Economics 2: 193–211. doi: 10.1016/0165-4101(80)90002-6
   Google Scholar
• Li, H., M. Pincus, and S. O. Rego. 2008. “Market Reaction to Events Surrounding the Sarbanes-Oxley Act of 2002 and Earnings Management.” The Journal of Law &Economics 51: 111–134. doi: 10.1086/588597
   Web of Science ®Google Scholar
• Lubben, S. J. 2009. “Derivatives and Bankruptcy: The Flawed Case for Special Treatment.” University of Pennsylvania Journal of Business Law 12 (1): 61–78.
   Google Scholar
• Maclachlan, F. 2014. “Repurchase Agreements and the Law: How Legislative Changes Fueled the Housing Bubble.” Journal of Economic Issues 48 (2): 515–522. doi: 10.2753/JEI0021-3624480227
   Web of Science ®Google Scholar
• Morrison, E. R., M. J. Roe, and C. S. Sontchi. 2014. “Rolling Back the Repo Safe Harbors.” The Business Lawyer 69 (4): 1015–1047.
   Google Scholar
• Noonan, L. 2017. “ Higher Interest Rates Point to More Bank Profits.” Financial Times. March 13, 2017. https://www.ft.com/content/f84dbae4-e713-11e6-967b-c88452263daf?mhq5j=e7.
   Google Scholar
• Ong, K. T., and E. Y. Yeung. 2011. “Repos & Securities Lending: The Accounting Arbitrage and Their Role in the Global Financial Crisis.” Capital Markets Law Journal 6 (1): 92–103. doi: 10.1093/cmlj/kmq030
   Google Scholar
• Patell, J. A. 1976. “Corporate Forecasts of Earnings Per Share and Stock Price Behavior: Empirical Test.” Journal of Accounting Research 14: 246–276. doi: 10.2307/2490543
   Web of Science ®Google Scholar
• Pinnuck, M. 2005. “What Is the Abnormal Return Performance of Mutual Funds due to Private Earnings Information?” Journal of Contemporary Accounting and Economics 1: 193–215. doi: 10.1016/S1815-5669(10)70009-6
   Google Scholar
• Riechmann, D. 2000. “ Clinton Vetoes Bankruptcy Bill.” Associated Press. December 19, 2000. http://www.apnewsarchive.com/2000/Clinton-Vetoes-Bankruptcy-Bill/id-b52e0f874e5e4682442bf2e2dea2009b.
   Google Scholar
• Roe, M. J. 2011. “The Derivatives Market’s Payment Priorities as Financial Crisis Accelerator.” Stanford Law Review 63 (3): 539–590.
   Web of Science ®Google Scholar
• Roe, M. J., and F. Tung. 2013. “Breaking Bankruptcy Priority: How Rent-Seeking Upends the Creditors’ Bargain.” Virginia Law Review 99: 1235–1290.
   Web of Science ®Google Scholar
• Schroeder, J. L. 2002. “Repo Opera: How Criimi Mae Got Repos Backwards.” A Am Bankr LJ 76: 565.
   Google Scholar
• Sefcik, S. E., and R. Thompson. 1986. “An Approach to Statistical Inference in Cross-Sectional Models with Security Abnormal Returns as Dependent Variable.” Journal of Accounting Research 24 (2): 316–334. doi: 10.2307/2491136
   Web of Science ®Google Scholar
• Stigum, M. L. 1989. “ The Repo and Reverse Markets.” Irwin Professional Pub.
   Google Scholar
• Watts, R., and J. Zimmerman. 1986. Positive Accounting Theory. Englewood Cliffs, NJ: Prentice-Hall.
   Google Scholar
• Zhang, I. 2007. “Economic Consequences of the Sarbanes-Oxley Act of 2002.” Journal of Accounting and Economics 44: 74–115. doi: 10.1016/j.jacceco.2007.02.002
   Web of Science ®Google Scholar