Drawing a Line Between Nochi Dankner and IDB

Uriel Procaccia, a pioneer in the economic approach to law, says issues in the controversy over tycoons, creditors and haircuts are often misunderstood.

Uriel Procaccia, one of the pioneers in using economic principles to develop law, says that the controversy surrounding the bailout of Israel’s tycoons at the expense of bondholders is replete with misconceptions. People must understand the distinctions between a limited liability company and its controlling shareholder, he says, with each dealt with by the law and investors in their own way.