Research

Professor Paul Griffin

Professor Paul Griffin served as an expert witness in the Federal Court of Claims case, Bank of America v. The United States, 2005. In this precedent-setting case  Bank of America sued the federal government for taxes it might pay on breach-of-contract damages. This breach was the result of federal regulations instigated following the deregulation of the savings and loan industry in the early 1980s. Griffin weighed in significantly on the court’s decision to not allow Bank of America to collect the additional taxes as damages. The deregulation of the savings and loan industry perpetuated several years of unmitigated graft and fraudulent investments that destabilized the market. In response the federal government imposed regulations in the form of several acts, including  the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), which slapped investment institutions with a series of rules that conflicted with previous contractual agreements with the government. For instance, a common practice during company acquisitions prior to this regulation was the regulatory accounting principle known as “supervisory goodwill.” In the post-FIRREA era, financial institutions have not been allowed to use this accounting principle, prompting several to file lawsuits against the government. Most financial institutions won the breach-of-contract cases, but some decided to take it further by suing for the taxes they might pay in the future on damages because their supervisory goodwill was taken away. Bank of America sought claims of $100 million in lost capital due to the disallowed supervisory goodwill, and also demanded millions of dollars of taxes that might be paid under the new regulations. Griffin argued that a tax gross-up, or tax reimbursement, was inappropriate in this instance because the damages Bank of America was seeking constituted the replacement of lost capital and, as such, cannot be the subject of taxation. The court agreed that no tax gross-up should be awarded—and Griffin’s recommendation saved tax payers millions of dollars.

Commands

Twitter Feed

Loading tweets...

Spotlight Story

Andrew Barkett Finds Innovative Ways to Fuel Entrepreneurship
Named First-ever Chief Technology Officer for Republican National Committee

Image of Andrew Barkett Finds Innovative Ways to Fuel Entrepreneurship

UPDATE: Andrew Barkett is leaving his post as senior engineer at Facebook to bring his decade of experience in Silicon Valley to become the first-ever chief technology officer for the Republican National Committee.The June 4 announcement has stirred a whirlwind of media coverage, including the Huffington Post and Washington Post.Bark

Spotlight Story

MBA Student Consultants Make an IMPACT
Projects Put Business Needs Front and Center

Image of MBA Student Consultants Make an IMPACT

Agilent Technologies’ Electronic Measurement Group is a $3.6 billion business that over the past decade has seen a dramatic shift in its customer base from U.S., and Western European customers to predominantly Asia-based customers. Today, the majority of the division’s revenues are generated outside of the U.S., with an increasing concentration in China.

Spotlight Story

UC Davis Part-Time MBA in Top 8%, Full-Time MBA in Top 9%
U.S. News & World Report’s latest rankings: This marks the 19th consecutive year our MBA program has been ranked among the best in the nation.

Image of  UC Davis Part-Time MBA in Top 8%, Full-Time MBA in Top 9%

(Davis, CA) — The UC Davis Graduate School of Management’s full-time MBA program has been ranked among the top six percent of AACSB International-accredited programs nationwide, according to U.S. News & World Report’s latest graduate business school rankings released today.

Spotlight Story

Mark Otero MBA 07 Builds Sacramento’s Coolest Company
The secret of social gaming mogul Mark Otero’s success is taking things to the extreme

Image of Mark Otero MBA 07 Builds Sacramento’s Coolest Company

The secret of Midtown Sacramento’s Facebook gaming mogul Mark Otero’s success is taking things to the extreme.