Session 5

Applications I:

Banking and Finance

Reading List

  • Robert C. Hockett & Saule T. Omarova, The Finance Franchise, 102 CORNELL L. REV. 1143 (2017),
    • This is the article in which we offer a new master-narrative of what our financial system is really about; we challenge the reigning doctrine of “financial intermediation” and outline how finance is really a public-private “franchise” arrangement with the public at the center.
  • Saule T. Omarova, Why We Need A National Investment Authority (2020),
    • This is a short issue brief on the NIA idea, with links to the original article and other sources with more details.
  • Saule T. Omarova, The Quiet Metamorphosis: How Derivatives Changed the “Business of Banking,” 63 MIAMI L. REV. 1041-1109 (2009),
    • This is a more narrowly targeted piece that examines how the OCC (the federal regulator of national banks) used its administrative tools to allow U.S. banks to trade and deal in derivatives, and how that hidden process effectively made derivatives markets grow to their present size and importance.
  • (Optional) Saule T. Omarova, Technology v. Technocracy: Fintech as a Regulatory Challenge, 6 J. FIN. REG. 1 (2020),
    • This article is about the need for a much more consciously normative approach to regulating fintech; it emphasizes the primacy of macro-structural solutions over microtransactional ones.
  • (Optional) Saule T. Omarova, The People’s Ledger: How to Democratize Money and Finance the Economy, 75 VAND. L. REV. (forthcoming 2021),
    • This article offers a blueprint for a comprehensive restructuring of the Federal Reserve’s balance sheet as the ultimate public platform for allocation of credit in a democratic economy.

Recorded Lecture