Securities

  • October 21, 2014

    JPMorgan, UBS, Credit Suisse Pay €94M Over Rate-Rigging

    The European Commission announced €94 million ($119.6 million) in settlements against J.P. Morgan, UBS, and Credit Suisse on Tuesday in connection with cartels that fixed the price of the Swiss franc-denominated Libor and certain Swiss franc interest-rate derivatives near the peak of the financial crisis.

  • October 21, 2014

    Feds Finalize Risk Retention Rule That Leans On CFPB

    The Federal Deposit Insurance Corp. and two other regulators approved a final rule Tuesday requiring banks to hold a stake in mortgages and other securitizations, and aligning an exception from the rule with the Consumer Financial Protection Bureau's standards for high-quality mortgages.

  • October 21, 2014

    NY Fed Overlooked JPMorgan London Whale Risks: Watchdog

    The New York Federal Reserve Bank identified risks at the JPMorgan Chase unit responsible for the London Whale trading debacle, but did not share these findings with one of the bank’s other regulators, nor did it go through with planned examinations of the unit, the regulator’s internal watchdog said Tuesday.

  • October 21, 2014

    Ackman Says Allergan CEO Oversaw Valeant Smear Campaign

    Activist investor Bill Ackman in a new court filing late on Monday accused Allergan Inc.'s CEO of trying to tarnish Valeant Pharmaceuticals International Inc. in an effort to sour shareholders on its hostile $53 billion bid.

  • October 20, 2014

    Forex Rigging Fines Could Reach $40B, Citigroup Says

     A number of the world’s largest banks could have to pony up as much as $40 billion in combined fines to settle the alleged rigging of foreign currency exchange markets, with Deutsche Bank AG and Barclays PLC set to owe the most, according to a Monday report released by Citigroup Inc.

  • October 20, 2014

    SEC Again Sued Over 'Unconstitutional' Adminstrative Cases

    The U.S. Securities and Exchange Commission on Monday was hit with another lawsuit challenging the constitutionality of its administrative proceedings, by an investor accused of trading on nonpublic information about activist investor Bill Ackman’s $1 billion bet against Herbalife Ltd.

  • October 20, 2014

    Wyndham Execs Escape Derivative Suit Over Cyberattacks

    A New Jersey federal judge on Monday threw out a Wyndham Worldwide Corp. shareholder's derivative action over a series of security breaches, finding no evidence that Wyndham's Kirkland & Ellis LLP attorneys had a conflict of interest when they advised it to reject shareholder demands.

  • October 20, 2014

    NY Fed's Chief Wants Execs To Chip In For Big Bank Fines

    Wall Street leaders should be forced to give up pay if their firms get hit with large fines and should do more to improve their firms' culture of compliance, or else face the prospect of being broken up, the head of the New York Federal Reserve Bank said Monday.

  • October 20, 2014

    Facebook Seeks Same 2nd Circ. Panel For Investor IPO Spats

    Facebook Inc. asked the Second Circuit on Thursday to have the same merits panel hear appeals of four shareholder derivative suits launched over the social media titan's 2012 initial public offering, saying the suits lob overlapping breach of fiduciary duty allegations against Facebook's directors.

  • October 20, 2014

    Sam Wyly Seeks Ch. 11 To Deflect Looming $198M Fine

    Texas tycoon Sam Wyly sought Chapter 11 protection Sunday, saying he can't afford a potential $198 million government penalty for allegedly using secretive offshore trusts to trade stocks while evading taxes.

  • October 20, 2014

    With Lessons Learned, FHFA Lets Mortgage Giants Ease Credit

    The Federal Housing Finance Agency's plan to boost mortgage lending by allowing Fannie Mae and Freddie Mac to purchase loans with 3 percent down payments may stir housing bubble memories, but experts say better underwriting standards and other protections should prevent the worst subprime lending practices from returning.

  • October 20, 2014

    SIFMA Urges Regulators To Coordinate Cybersecurity Push

    The Securities Industry and Financial Markets Association asked regulators Monday to create a White House-led working group as agencies build new cybersecurity frameworks, in order to avoid creating a regulatory tangle in the wake of massive data breaches like one that affected more than 76 million JPMorgan Chase & Co. customers this summer.

  • October 20, 2014

    How They Won It: Cravath Shores Up Forum Selection Bylaws

    To win a landmark decision in a shareholder challenge to a First Citizens BancShares Inc. merger that strengthened support for forum selection bylaws, Cravath Swaine & Moore LLP attorneys fixated their focus on the Delaware Chancery Court's logic in a related prior ruling, cutting away anything they thought might cloud the issue.

  • October 20, 2014

    SEC Names Ex-Hedge Fund Manager As Exam Deputy Director

    The U.S. Securities and Exchange Commission said Monday it has named a former Stark Investment LP executive as the new deputy director of its examination office, promoting from within the ex-hedge fund manager who specializes in the workings of funds run by private equity firms and hedge funds.

  • October 20, 2014

    Q&A With Baker Botts' Joshua Davidson

    The master limited partnership IPO market is very hot. Companies that have not thought seriously in the past about MLPs are doing them now for a number of reasons, says Joshua Davidson, head of Baker Botts LLP's master limited partnerships practice.

  • October 20, 2014

    SEC Whistleblower Head Calls Tipster Identity 'Sacrosanct'

    In part two of a three-part peek behind the scenes of the U.S. Securities and Exchange Commission’s whistleblower office, director Sean McKessy explains how he’s learned to share information both within and outside of the agency without ever compromising the identity of his tipsters.

  • October 20, 2014

    SEC Orders Radio Host-Hedge Fund Manager To Pay $1.7M

    The U.S. Securities and Exchange Commission has ordered a hedge fund manager and conservative talk-radio host to pay $1.7 million after investigating claims he overstated the value of two funds in his John Thomas Capital Management Group LLC.

  • October 20, 2014

    Strong Valeant Earnings Buoy Talk Of Heftier Allergan Bid

    Rounding the six-month mark in its $53 billion hostile pursuit of Allergan Inc., Valeant Pharmaceuticals International Inc. hinted it could raise its bid for the Botox maker after it said strong third-quarter earnings released Monday disprove attacks on its business model.

  • October 20, 2014

    Warburg, Bridgepoint Directors Beat $250M Tender Offer Suit

    A California federal judge on Friday said Bridgepoint Education Inc.'s approval of a 2013 tender offer with Warburg Pincus Private Equity VIII LP was based on "classic business judgment," tossing a shareholder derivative suit claiming the offer allowed Warburg to unfairly rake in nearly $250 million in profits via a share buyback.

  • October 20, 2014

    FINRA To Scrutinize High-Speed Algorithmic Trading

    The Financial Industry Regulatory Authority's risk czar warned Monday that the organization will soon ask more of companies that use automated high-frequency trading, saying examiners will look for evidence that such programs have been robustly vetted as part of efforts to catch up with traders' technical advances in recent years.

Expert Analysis

  • The Impact Of Boilermakers Continues To Be Felt

    Celia Taylor

    Relying on and further strengthening the import of Boilermakers Local 154 Retirement Fund v. Chevron Corp., a recent decision in a shareholder suit involving Chemed Corp. shows the power of boards to have their say as to where intracorporate litigation will take place and who will pay for it, says Celia Taylor of Sturm College of Law at the University of Denver.

  • 10 Things You Must Know Before Engaging In Crowdfunding

    Eliza Sporn Fromberg

    "Accredited crowdfunding" platforms offer the tantalizing possibility of raising funds with the click of a button, but it is vital to consider the regulatory scheme under which the platform operates and its managerial and financial resources, among other factors, say Eliza Sporn Fromberg, counsel at Day Pitney LLP, and Norbert Mehl, CEO of Global i Ventures.

  • Takeaways From Broker-Dealers’ Section 5 Inadequacies

    Daniel A. Nathan

    The U.S. Securities and Exchange Commission has issued letters of deficiency for Section 5 compliance to 80 percent of the firms examined. Meanwhile, broker-dealers are continually confronted with the decision whether the revenue from accepting and selling large quantities of lower-priced stocks is worth the risks, say Daniel Nathan and Michael Sorrell of Morrison & Foerster LLP.

  • Novel Theory In Wyly Case Could Change SEC Disgorgement

    Bruce M. Bettigole

    The Southern District of New York ruling that Dallas billionaire Sam Wyly and the estate of his late brother are liable for the disgorgement of unpaid taxes in connection with securities fraud violations has set an important precedent in determining the monetary remedies the U.S. Securities and Exchange Commission may seek, say attorneys with Sutherland Asbill & Brennan LLP.

  • 2nd Circ. Fails To See The Comity In Chapter 15

    Daniel M. Glosband

    The Second Circuit in the case of Fairfield Sentry Ltd. missed the point that applying Section 363 to the sale of a Securities Investor Protection Act claim — in the context of a Chapter 15 ancillary proceeding — to the same extent that it would apply to property of an estate does not eliminate the principles of comity that infuse Chapter 15, say Daniel Glosband and Kizzy Jarashow of Goodwin Procter LLP.

  • The Root Cause Of Skyrocketing Defense Costs

    Douglas W. Greene

    The costs of defending securities class actions continue to increase, and the root cause is the convergence of two related factors — the prevailing view that securities class actions are “bet the company” cases, and the consequent reflexive hiring of BigLaw firms, says Douglas Greene of Lane Powell PC.

  • What Litigators Can Learn From Novelists

    Michael H. Rubin

    Many legal briefs are written in impenetrable jargon and begin with an introduction telling the court what it already knows, using words that stem from the 18th century, such as “hereinafter.” Instead, we should approach briefs the way novelists approach their writing, says Michael Rubin of McGlinchey Stafford PLLC.

  • An Offensive Use Of The FCPA?

    Kedar Bhatia

    With recent examples in mind, there is no clear indication that offensive use of the Foreign Corrupt Practices Act is actually a new frontier as opposed to another somewhat underhanded effort at securing a competitive advantage, say Kedar Bhatia and Shamoil Shipchandler of Bracewell & Giuliani LLP.

  • Will The New ABS Rules Impact Cell Tower Securitizations?

    Malcolm P. Wattman

    Given the lack of specific discussion of cell tower securitizations in U.S. Securities and Exchange Commission commentary relating to two new rules affecting asset-backed securities, it is uncertain if cell tower securitizations are subject to the new rules, and whether the applicability of the rules depends upon the securitization structure used, say attorneys with Cadwalader Wickersham & Taft LLP.

  • 2nd Circ. Expands US Court Role In Ch. 15 Cases

    George W. Shuster Jr.

    In a recent Madoff-related decision, the Second Circuit took a relatively aggressive stance on U.S. court review of asset sales in Chapter 15 cases, and the ruling may have effects in bankruptcy cases outside Chapter 15, say George Shuster and Benjamin Loveland of WilmerHale.