iiinova — where your digital self keeps evolving

Reposted by Daniel Hawley

sanjukta paul @sanjukta.bsky.social · 03/10/2025

Hello! Here is my essay (still a draft) for a symposium held in the spring at the university of chicago. (Please note that the title of the symposium was set by the law review; I chose my essay title.) Comments are welcome. thesanjuktablog.wordpress.com/2025/10/03/n...

thesanjuktablog.wordpress.com

New essay: law & the self-coordinating market idea

Essay for the University of Chicago Law Review Symposium, held in April 2025, on “Law & Economics vs. Law & Political Economy: A Debate” (draft) Law & the scm idea uchi l re…

2229

Reposted by Daniel Hawley

Nathan Tankus @nathantankus.bsky.social · 26/07/2025

"five news media requesters pertaining to Board members' communications and meetings with members of the executive branch as well as various memoranda concerning a Federal Reserve System publication." Look @danielhawley.bsky.social, we made it into the FRB FOIA report!

federalreserve.gov

2025

The Federal Reserve Board of Governors in Washington DC.

1164

Daniel Hawley @danielhawley.bsky.social · 10/07/2025

Andrew Ferguson is a soulless political climber and a shame on the FTC and the entire profession

020

Reposted by Daniel Hawley

sanjukta paul @sanjukta.bsky.social · 24/05/2025

New essay from Lev Menand directly addressing the supposed uniqueness of the Federal Reserve board, as asserted by the supreme court papers.ssrn.com/sol3/papers....

1226

Daniel Hawley @danielhawley.bsky.social · 18/04/2025

the hardest part about writing this piece was resisting the urge to dedicate it to Jamie Dimon

020

Reposted by Daniel Hawley

Raúl Carrillo @raulcarrillo.bsky.social · 15/04/2025

highly, highly recommend!!

131

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

Many thanks to everyone who helped get this across the finish line, and to everyone who was generous enough to read an earlier draft. If you have the stomach for the additional 10,000 words here, I hope you'll find it worthwhile 🙏 (fin)

010

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

Although my new resolution method is a tool of transition, the prescription for participatory control of monetary institutions is not limited to the moment of bank failure. My hope is that this can be part of a broader vision for the legal forms of a more just future. (21/n)

120

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

In sum, the FDIC puts its thumb on the scale for hierarchical firm-based coordination. It doesn't have a good reason for doing so. And choosing to disperse intrafirm coordination rights instead better aligns with the law and political economy of antitrust and banking. (20/n)

120

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

To support IRT, bank regulators can draw on their supervision and examination powers to require, for example, cooperative resolution planning before failure (see "living wills") and station cooperative experts on site (19/n)

110

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

Like any other resolution method, in IRT the FDIC fires the senior mgmt, officers, and directors and appoints their own board. The FDIC writes new bylaws suited to participatory control. Then the workers bid for permanent control of the bank in the typical auction process (18/n)

110

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

It uses the same administrative process that allows private equity to bid for and acquire failed banks. But instead transferring bank charters to PE firms, IRT turns over control to the workers (and community members) (17/n)

110

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

I'll save the goriest details for the bravest readers, but for now it suffices to say that my new resolution method, IRT (intrafirm reallocation transaction), can be just as orderly as failed bank mergers. (16/n)

120

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

You might be thinking: sure, but the FDIC needs to merge the failed bank because it's the most orderly way to prevent bank runs, etc. I.e., they do it out of administrative necessity, right? (15/n)

110

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

Beyond antitrust law, bank resolution must be situated in a broader field of banking law as well. Drawing on the work of Lev Menand, I argue that like antitrust law, banking law in many ways favors dispersing coordination rights. (14/n)

110

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

In fact, it's more likely that failed bank mergers are the most harmful to cost-based efficiency and consumer welfare. Among other things, acquiring banks tend to reduce lending to the failed bank's customers, lower their deposit rates, and close their branches. (13/n)

110

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

Yet even if we set aside the many problems with that account, minimizing costs to maximize consumer welfare doesn't explain why the FDIC merges failed banks. It isn't clear that failed bank mergers accomplish any of those goals, even on their own terms. (12/n)

110

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

As @sanjukta.bsky.social's work has shown, antitrust law orthodoxy has an ahistorical and incoherent justification for hierarchical firm-based coordination in the first place. It assumes that hierarchical firms minimize the costs of production, in turn increasing consumer welfare (11/n)

110

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

Second, the FDIC adopts antitrust's default allocation (favoring hierarchical firm-based coordination) but leaves the antitrust justifications (which are problematic in their own right) behind... (10/n)

120

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

the FDIC could stop reflexively merging failed banks AND transition them to participatory control—i.e., a more dispersed, more horizontal allocation of interfirm and intrafirm coordination rights. (9/n)

130

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

The balance sheet, bylaws, and bank charter of a failed bank are putty in the hands of the FDIC. I show that within the bounds of both antitrust and resolution law (section 1, least cost test, etc.)... (8/n)

121

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

It allocates INTRAfirm coordination rights by retaining antitrust law's preference for hierarchical firm-based coordination. This is so familiar to us that it escapes notice. However... (7/n)

120

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

First, the FDIC allocates INTERfirm coordination rights by effecting a merger between the failed bank (First Republic, SVB, and Signature) and a larger acquirer (JPMorgan, First Citizens, and NYCB). (6/n)

120

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

my Note finds a more fundamental problem with bank resolution: It allocates coordination rights and does so on an incoherent basis. That means FDIC can (and should) allocate coordination rights differently. I argue it'd be best to disperse rather than concentrate control (5/n)

130

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

Bank resolution is the process of dealing with failed banks. In 2023, the FDIC resolved three of the four largest bank failures in U.S. history (First Republic, SVB, and Signature). For now, let's set aside the much discussed problems with that episode... (4/n)

110

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

In fact, bank resolution's allocation of coordination rights clashes with the law and political economy of antitrust and banking (3/n)

120

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

At the highest level, the Note connects coordination rights (the right to economic coordination) to banking and bank resolution. Two central claims: 1. bank resolution allocates coordination rights 2. bank resolution does not have a good reason for that allocation (2/n)

131

Daniel Hawley @danielhawley.bsky.social · 15/04/2025

✍️📚 Hot off the presses: Coordination Rights After Bank Failure 🎉🚨 TLDR; instead of reflexively merging failed banks into bigger banks, the FDIC could turn them into quasi-worker cooperatives Out now in @columlrev.bsky.social columbialawreview.org/content/coor... 🧵 (1/n)

25519

Reposted by Daniel Hawley

Marisa Kabas @marisakabas.bsky.social · 10/04/2025

BREAKING — All FDIC employees just received an email confirming DOGE presence at the agency. "The DOGE team has neither requested nor been granted access to sensitive bank information." We'll see how long that remains true. Text of email shared with me:

Subject: Department of Government Efficiency
To: FDIC EMPLOYEES CORPORATE

12031981402

Reposted by Daniel Hawley

Rohan Grey @rohangrey.bsky.social · 25/03/2025

Holy shit. www.whitehouse.gov/presidential... He's actually doing it. Consolidating all payments under the Tsy. Not to toot my own horn too much, but this is exactly what my paper is trying to address and oppose. We need a strong digital fisc vision to counter this.

whitehouse.gov

Protecting America's Bank Account Against Fraud, Waste, and Abuse

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered: Section 1. Purpose.

631273462

Reposted by Daniel Hawley

Prem Thakker ツ @premthakker.bsky.social · 14/03/2025

NEW EMAIL FROM COLUMBIA ADMIN: DHS agents were in two university residences tonight — with two warrants "I am writing heartbroken to inform you that we had federal agents from the Department of Homeland Security (DHS) in two University residences tonight." No arrests made.

Columbia administration email announcing DHS was on campus

611454513

Daniel Hawley @danielhawley.bsky.social · 14/03/2025

eric holder didn’t take a final exam at columbia until his junior year because he was busy occupying campus buildings and such. the dean whose office he occupied wrote him a letter of rec for law school

Eric Holder speech saying “This being Columbia of course he agreed. He was a great, generous man. This College allowed an impetuous, testosterone laced youngster to express himself in ways that other institutions would have considered unacceptable. Not Columbia. This is why I loved this place.”

2186

Reposted by Daniel Hawley

Paul Gowder @gowder.io · 11/03/2025

For once someone claiming to write the first paper to X has likely actually written the first paper to X!

22710

Reposted by Daniel Hawley

Rohan Grey @rohangrey.bsky.social · 11/03/2025

🚨New Paper🚨 (hi law reviews!) ‘Digitizing the Fisc’ is the first article to address the current separation of fiscal powers crisis, exemplified by Trump's takeover of the Treasury's payments IT systems, through a tri-dimensional legal, political economic, & technological lens.

20273103

Daniel Hawley @danielhawley.bsky.social · 05/03/2025

by far the worst offender is requiring URLs AND permalinks. URLs are at best redundant, at worst useless, and they take up a ton of space and look like shit

000

Reposted by Daniel Hawley

Money on the Left @moneyontheleft.bsky.social · 02/03/2025

MotL 77 is live! 🗣️ ✨ Gaming Money w/ @raulcarrillo.bsky.social ✨ moneyontheleft.org/2025/03/02/g... We explore how companies like Roblox are not only harming gamers but issuing “shadow money,” evading banking regulations meant to prevent structural problems. Transcript forthcoming!

098

Reposted by Daniel Hawley

Nathan Tankus @nathantankus.bsky.social · 01/03/2025

Many of you have already seen it, but I wanted to wait until my version was complete. My version has my newly set up youtube channel, some minor fixes to the transcript &a bevy of links throughout the transcript. Also a PDF version. Thanks @pkrugman.bsky.social www.crisesnotes.com/musk-in-your...

crisesnotes.com

Musk In Your Computers: An Interview With Paul Krugman

Notes on the Crises pivoted on February 1st into around the clock coverage of the Trump-Musk Treasury Payments Crisis of 2025. Today is Day Thirty Read Part 0, Part 1, Part 2, Part 3, Part 4, Part 5,...

27594194

Reposted by Daniel Hawley

Nathan Tankus @nathantankus.bsky.social · 20/02/2025

I'm going to put a marker down here: @rohangrey.bsky.social is restructuring a paper of his for the current Law Review cycle that was basically predicting the Treasury Payments Crisis (he had an earlier version at least by 2021). It is a paper you want to publish. Here's me summarizing in 2023

114026

Daniel Hawley @danielhawley.bsky.social · 20/02/2025

if you want to mark up the TGA I know one ($ trillion) way to do that

000

Daniel Hawley @danielhawley.bsky.social · 20/02/2025

🗣️ get rid of the penny because of resource and emissions costs from mining and transporting zinc and copper not because of negative seigniorage

100

Reposted by Daniel Hawley

Nathan Tankus @nathantankus.bsky.social · 06/02/2025

CNN with an absolutely gigantic story: "Elon Musk’s top lieutenants at the Treasury Department asked its acting secretary, a career civil servant, to immediately shut off all USAID payments using the department’s own ultra-sensitive payment processing system." edition.cnn.com/2025/02/06/p...

edition.cnn.com

Musk associates sought to use critical Treasury payment system to shut down USAID spending, emails show | CNN Politics

Four days after Donald Trump’s inauguration, Elon Musk’s top lieutenants at the Treasury Department asked its acting secretary, a career civil servant, to immediately shut off all USAID payments using...

8221751065