Corporate Law Gorilla Award 2007

450px-Gorilla_gorilla_gorilla2.jpgIn 2005, when I first announced the annual Corporate Law Gorilla Award, the idea died for lack of interest. I’m undaunted, and our audience has grown considerably in the last two years, which means that there is at least a chance that some of your new eyes may be interested in participating.

So here’s the contest: motivated by the famous gorilla-basketball experiment, I’d like to know “what unheralded tax-break/accounting technique, merger/breakup, stock/bond rise/fall/issuance, corporate announcement/silence, etc., will prove in the next several years to be the biggest missed business story” of 2007. The reader with the most plausible story will win fame, and, should her/his prediction prove accurate, possible immortality in a law review case comment footnote.

My guess: LBO-ready stakes taken by sovereign foreign funds in large U.S. financial companies. (Possible disqualification: covered by WSJ’s Berman two weeks ago. Okay, so readers are permitted to submit anything whose hype/real world impact ratio is <.5).

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1 Response

  1. Ben Barros says:

    If the big bond insurers like MBIA and Ambac get downgraded because of the subprime mess, there could be a big ripple effect throughout the markets. A lot of investment-grade securities get their rating from the insurance policy (or “wrap”) that the bond insurers place on the issue. If the insurers get downgraded, a lot of debt instruments might also get downgraded. Among other things, entities that can only hold investment-grade instruments might be forced to sell lots of this stuff at the same time.