NEWS

"Instead of restoring public confidence in government, President Obama's rhetoric on transparency seems to have raised unrealistic expectations," writes Penn Law Professor Cary Coglianese. "The issue is really how much transparency, and what kind, should apply to different aspects of government. Good, open government is not the same as a reality television show, broadcasting every move officials make and every conversation they have." (8/26/2009). Philadelphia Inquirer. SSRN.
In the 1,000 pages of H.R. 3200, the main version of the health reform bill, medical malpractice reform remains the Great Unmentioned. That's OK with Penn Law Professor Tom Baker, who says that only 4 to 7 percent of those eligible to collect from a doctor actually ever make a malpractice claim. (8/22/2009). Buffalo News.
Bank of America will likely face more embarrassing disclosures about bonuses paid at Merrill Lynch after a federal judge refused to rubber-stamp a settlement over the $3.6 billion of payouts, "but I see less of a risk to BofA than I do potentially to government officials," said Jill Fisch, a professor at the University of Pennsylvania Law School and co-director of its Institute for Law and Economics. "One of the things the settlement covers up is the government role, including that of the Federal Reserve," she added. "More disclosure of what went on could provide a check on overreaching by any one regulator." (8/11/2009). Reuters.
"Anyone who thinks that limiting liability would reduce health care costs is fooling himself. Preventable medical injuries, not patient compensation, are what ring up extra costs for additional treatment," writes Professor Tom Baker, author of The Medical Malpractice Myth. (7/12/2009). New York Times.
A recent study by Stephen Choi, Penn Law Professor Jill Fisch and Marcel Kahan finds that proxy advisory firms are information aggregators rather than "independent power centers." Their paper, "Director Elections and the Influence of Proxy Advisors," is available at www.ssrn.com. The study expands on the trio's earlier "Director Elections and the Role of Proxy Advisors," which is also available at www.ssrn.com and will appear in the Southern California Law Review later this year. (6/22/2009). The Deal.com.
Jill E. Fisch, a professor at the University of Pennsylvania Law School and an expert in securities regulation, suggested that in such areas of specialization, Judge Sotomayor’s opinions tend to be “fairly technical and restrained,” but without the flair of a jurist who feels deeply one way or another about the topic. “I don’t see this as one of her core interests,” she said, suggesting that in such cases the judge might “look at the letter of the law, and follow the leadership of those who have more passion for those questions.” (5/27/2009). New York Times.
The EPA recently proposed regulating greenhouse gases under the Clean Air Act. Unfortunately, using this 1970s-era law to address climate change is like driving a Model T on a cross-country trip, Penn Law Professor Cary Coglianese, writes in an op-ed. (5/2/2009). Boston Globe.
Penn Law Professor Cary Coglianese told a Congressional hearing that the role science plays in the decision-making process must be understood in context. This is because regulators have to weigh a variety of factors, such as effectiveness, efficiency and fairness. Furthermore, he said regulators should not hide decision-making behind the "cloak of science" because that misinforms the public about which factors were used to come up with any specific regulation. "Science cannot do everything," Coglianese said. "Science describes; it does not prescribe. Regulatory agencies tend to blur that distinction." [ See news release.] (5/1/2009). E&E News.
Immigration restrictions, like trade restrictions, protect native workers to the detriment of employers who pay them and consumers who purchase the goods or service from them, Penn Law Professor Howard Chang said at a University of Scranton event. Chang called for a path toward legal citizenship based on an immigrant’s work history, clean criminal record and other criteria. (4/28/2009). Scranton Times-Tribune.
The University of Maryland selects former PPR faculty affiliate Don Kettl as the new dean of its public policy school. (4/16/2009). Daily Pennsylvanian
Should the government share the results of its stress tests of 19 major banks? Experience shows that more disclosure rather than less is better when it comes to banks, says Penn Law Professor Jill Fisch, who specializes in securities issues. "We did get into this mess because we had a lot of sloppiness in the way financial institutions and others were required to disclose their values and models and risk," she said. "Going forward that can't be a good thing." (4/15/2009). Reuters.
The real problem facing health care is too much malpractice, not too much litigation, says Tom Baker, a law professor at the University of Pennsylvania. "The idea that Americans are suit-happy, litigation-crazy, and ready to rumble in the courts is one of the more amazing myths of our time. It's not pretty to say, but doctors and nurses make preventable mistakes that kill more people in the United States every year than workplace and automobile accidents combined." (3/31/2009). Canadian Medical Association Journal
Former PPR faculty affiliate Edward DeSeve is appointed senior advisor in OMB and special advisor to President Barack Obama. (3/31/2009). Penn Almanac
"President Obama - a former law lecturer and outstanding contracts student -will exercise the power of the deal... and will hold up the money that A.I.G. needs" to stop similar bonus payments in the future, writes Penn Law Professor Tom Baker. "After all, it's the people's money, and the people are with him." (3/17/2009). New York Times
Environmentalists should not fret over the Obama administration's intention to close an EPA program that rewards voluntary pollution control by corporations, says Penn Law Professor Cary Coglianese. "In the program's absence, responsible companies will still continue to go beyond compliance and make environmental progress," he said. (3/14/2009). Philadelphia Inquirer
Despite the epic volatility of the stock market last year, settlements in class-action securities cases fell more than 50% to the lowest levels since 2003. "There's a lot of cases against companies in the financial sector," said Jill Fisch, a professor of securities law at the University of Pennsylvania Law School. "When you've got the whole sector trading for less than $5 a share, what's the effect of the fraud?" (3/11/2009). Forbes
An annuity scheme popular in the late 19th Century could hold the key to providing health insurance for adults ages 19-29, who account for more than one-third of all uninsured adults, Professor Tom Baker writes in an op-ed. (3/9/2009). New York Times
Listen as Penn Law Professor Tom Baker and BusinessWeek writer Diane Brady talk with Radio Times host Marty Moss-Coane about the question: "Why is AIG too big to fail?" (3/9/2009). WHYY
While workers on H1-B visas aren’t included in a law that protects green-card holders from employment discrimination, demands that Microsoft layoff foreigners before cutting jobs held by citizens may violate civil rights laws, said Howard Chang, a professor at the University of Pennsylvania Law School. (2/20/2009). Rocky Mountain News
While workers on H1-B visas aren't included in a law that protects green-card holders from employment discrimination, demands that Microsoft layoff foreigners before cutting jobs held by citizens may violate civil rights laws, said Howard Chang, a professor at the University of Pennsylvania Law School. (2/20/2009). Bloomberg
Adam Finkel, a former Labor Department official who now is executive director of the University of Pennsylvania Law School Program on Regulation, said he hopes Cass Sunstein, the new president's likely choice to oversee rules for everything from global warming to workplace safety, will moderate his conservative views. "When you do it right, you see there are a lot of things we need to regulate significantly," Finkel said. (2/10/2009). Bloomberg
As litigation costs threaten to consume insurance coverage limits for financial firms sued in connection to the alleged Madoff investment scheme, Tom Baker, a professor of insurance law at the University of Pennsylvania, is skeptical that plaintiffs and defendants will enter into quick settlements in order to maximize payouts to aggrieved investors. Settlements with insurance companies typically happen only with companies that are already insolvent, he said. (2/6/2009). Law360 (Subscription)
In what will be a "bonanza for lawyers," litigation over Bernard L. Madoff's alleged $50 billion Ponzi scheme will pick up as victims seek help from their insurance companies - and those insurance companies balk at paying at least some of the claims, said Tom Baker, a professor of insurance law at the University of Pennsylvania. "The question will be will their insurance companies step up to the plate." (1/30/2009). Law 360 (Subscription)
Congressional Quarterly Obama's political appointees do not have to undo the Bush regulatory framework to achieve their policy objectives, says Cary Coglianese.
An insurance company with a potential $25 million liability from a 2007 Houston office fire is claiming smoke that killed three people was "pollution" and surviving families shouldn't be compensated for their losses since the deaths were not caused directly by the actual flames. But, "The purpose of a pollution exclusion is not to not cover people who die from smoke inhalation in a fire," said Penn Law Professor Tom Baker. "I would hope they (the insurers) lose this." (12/17/2008). Houston Chronicle.
Prominent EPA program fails to demonstrate environmental improvements, says Cary Coglianese, associate dean of the Penn Law School and director of the Penn Program on Regulation. (12/9/2008). Philadelphia Inquirer.
Professor Robert Hornik finds that “A five-year, $1 billion anti-drug advertising campaign by the U.S. Government was ineffective, and may have actually done more harm than good.” (10/15/08) Press release.