Thought Leadership @ Johnson

Professor Andrew Karolyi and the Morrison Decision

(11/2/12)


Professor Andrew Karolyi, Faculty Co‐Director of Johnson’s Emerging Markets Institute, says a June 2010 decision by the United States Supreme Court has driven a major wedge between U.S. and foreign securities markets, increasing costs to U.S. investors seeking foreign exposure and impeding the flow of U.S. capital abroad.

Karolyi has been studying the aftershocks of Morrison v. National Australia Bank, in which the Court held that only securities purchased on U.S. exchanges or on U.S. soil (if traded over the counter) are subject to the fraud protection provisions of Section 10(b) of the Securities Act. A new white paper presented by the Emerging Markets Institute explains the impacts of the Morrison decision, and reveals the findings of Karolyi's research on it.