Exact(3)
Until there is clarity, by restructuring bank liabilities to create transparently solvent banks, private sector capital will not finance an expansion of bank lending capacity that risks being swallowed up in a black hole of historic losses.
The fact is even in the depths of a recession a banking system flush with excess reserves is always in a position to pyramid up its deposit liabilities, to create Uncovered Money Substitutes, regardless of the demand for loans.
The shelter, promoted most aggressively in 1999 and 2000 by about a dozen accounting, law and boutique firms, used partnerships and a hyper-technical definition of the word "liabilities" to create billions in paper losses that taxpayers then used to offset their real gains.
Similar(57)
But as Kevin P. LaCroix wrote on the D&O Diary blog, "liability insurance exists to protect insured persons from liability, not to create a pool of money to compensate would-be claimants".
We cannot amend the statute to create liability for acts that are not themselves manipulative or deceptive within the meaning of the statute.
Hustler Magazine, Inc. v. Falwell, 485 U.S. 46, 53 (1988) (prohibiting use of ill motive to create liability for speech in the realm of public debate about public figures).
However, like the failure of effective prudential regulation, the failure to adopt limited and conditional protection despite its historically proven record of success has a simple political explanation: liability insurance is designed to create subsidies, not to limit systemic risk.
Prosecution guidance is clear that accidental presence at the scene of a crime or mere association with an offender is never enough to create liability - a suspect has to assist or encourage the offence in some way.
"Whether or not Whitman's resolution of such competing considerations was wise," the court said, "she has not engaged in conduct that 'shocks the conscience' in the sense necessary to create constitutional liability for damages to thousands of people".
Cf. Pinter v. Dahl, 486 U.S., at 650, 108 S.Ct., at 2080 ("When Congress wished to create such liability, it had little trouble doing so"); Blue Chip Stamps, 421 U.S., at 734, 95 S.Ct., at 1925 ("When Congress wished to provide a remedy to those who neither purchase nor sell securities, it had little trouble in doing so expressly").
The jury instructions stated that "[o]ne infringes contributorily by intentionally inducing or encouraging direct infringement" and that such intent could be found if Cox "knew or should have known of such infringing activity". Looking to the Global-Tech rule employed in patent cases, Motz reasoned that negligence was not sufficient to create contributory liability.
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