Former Sen. Judd A. Gregg, R-N.H., has stepped down as CEO of the Securities Industry and Financial Markets Association, Wall Street's biggest lobbying group, less than seven months after taking on the role, SIFMA said Thursday.
A New York state judge ruled Thursday that he won't wade into a bitter leadership fight in California between two factions of an Native American tribe, saying his only role is to protect the holders of $250 million in bonds backed by the tribe's casino.
Assured Guaranty Corp. should be able to seek consequential damages from Credit Suisse AG for allegedly lying about the quality of the loans in $1.8 billion worth of mortgage-backed securities, the monoline insurer's attorney told a New York appellate court Thursday.
A few naughty lawyers can expect coal in their stockings this year, including a former Winston & Strawn LLP partner who helped Ponzi schemer Kenneth I. Starr launder money and a former Mayer Brown LLP partner convicted of aiding Refco Inc.’s $1 billion accounting scam.
Europe's insurance watchdog on Thursday called for closer supervision of the insurance-linked securities market, which has enjoyed explosive growth.
Hedge fund adviser GLG Partners LP has agreed to pay $9 million to settle the U.S. Securities and Exchange Commission's allegations that internal control failures led to the overvaluation of a fund's assets and inflated fee revenues, the regulator said Thursday.
The imprisoned co-founder of a hedge fund also managed by the head football coach of the University of Cincinnati was ordered Thursday to pay over $7.7 million to investors who say he defrauded them of their investments and mismanaged assets.
Merrill Lynch has agreed to pay $131.8 million to settle claims it publicly touted two collateralized debt obligations without disclosing that a hedge fund had helped to craft the complex securities while betting they would fail, the U.S. Securities and Exchange Commission said Thursday.
A California federal judge on Tuesday rejected the U.S. Securities and Exchange Commission's accounting fraud allegations against two former executives of Basin Water Inc., finding the SEC hadn't met its burden of proof to show fraud had taken place.
Treasury Secretary Jack Lew on Thursday tried to ease skeptical lawmakers' concerns that federal financial regulators would have differing standards for enforcing the Volcker rule's ban on proprietary trading, but said that no single regulator had the authority to take the lead on such issues.
He's no Clark Griswold. But former SAC Capital Advisors LP portfolio manager Mathew Martoma, set to go on trial Jan. 6 on insider trading charges, won court permission Wednesday to go on a whirlwind family Christmas vacation that will include a stop in Yellowstone National Park.
A New York federal judge on Wednesday threw out a fraud suit brought by a Florida investor who accused Bank of America Corp. of material misstatements and omissions concerning its subprime mortgage standards, finding the investor hadn't properly opted out of a related class action.
The U.S. Tax Court on Wednesday affirmed a $30 million tax deficiency against the world's second-largest poultry manufacturer, saying the company could not claim a worthless security deduction after intentionally abandoning $38 million in previously purchased stock.
A New Jersey federal judge on Wednesday said that shareholders bringing a derivative action against the leadership of American Oriental Bioengineering Inc. can serve the company’s China-based officers and directors through their U.S.-based counsel.
Five years after admitting it had failed to catch Bernie Madoff’s epic Ponzi scheme, the U.S. Securities and Exchange Commission has repaired its battered reputation thanks to a top-to-bottom restructuring and a successful new whistleblower office, attorneys say.
A U.K. House of Lords committee on Tuesday slammed a European Commission proposal that would allow 11 EU states to tax financial transactions, saying the "deadly" scheme would damage the U.K.'s markets because the country would have to collect the tax on behalf of the other 11 states.
A central cooperator in the case against SAC Capital Advisors LP portfolio manager Michael Steinberg testified Wednesday that he had aided about a half-dozen insider trading investigations, a response to defense suggestions that he falsely implicated Steinberg in a last ditch bid for a plea deal.
Questions remain about the Federal Deposit Insurance Corp.'s outline for unwinding failed global financial institutions, but observers say the vision the agency laid out Tuesday remains the best among bad options for handling a future crisis.
The Fourth Circuit on Wednesday threw out part of the conviction of a former Black Diamond Capital Solutions LLC hedge fund manager for his role in running a $35 million Ponzi scheme, sending his case back to the district court to recalculate his 50-year prison sentence.
A Bridgepoint Education Inc. shareholder launched a suit Monday accusing the higher education provider’s board of directors and majority shareholder Warburg Pincus Private Equity VIII LP of crafting a “self-dealing” tender offer for their shares at a premium that could drive the price up to $249.6 million.
The CEO and the factory worker are not competing for the same job, but rather competing in separate labor markets across firms and sometimes industries. It is thus meaningless to compare executive and worker pay as the U.S. Securities and Exchange Commission would require. Let the firms decide for themselves how much their labor is worth, says Korok Ray, assistant professor of accounting at the George Washington School of Business.
The Second Circuit's recent decision reversing the municipal bond bid-rigging convictions of three former General Electric Co. officials provides an important limitation on the government’s efforts to extend the statute of limitations in financial crimes when there is a continuous flow of economic benefits to a conspirator, says Lathrop Nelson of Montgomery McCracken Walker & Rhoads LLP.
Even though the New York Stock Exchange has significantly reduced the number of matters with respect to which brokers may vote, brokers remain permitted to vote on the ratification of auditors, so companies will still be able to use the broker vote to help establish quorum, says Keir Gumbs of Covington & Burling LLP.
The extensive amendments to Federal Rule of Civil Procedure 45 that took effect on Dec. 1, 2013, bring welcome changes that simplify and streamline subpoena practice. In particular, the elimination of uncertainty in determining where compliance can be required and where service can be effected will reduce the effort and costs involved in issuing subpoenas, say Lawrence Friedman and Sheilah Kane of Cleary Gottlieb Steen & Hamilton LLP.
While existing risk management protocols and alternative investment compliance policies may be sufficient to integrate Bitcoin, financial services firms should nevertheless keep abreast of regulatory developments, including those in money transmission laws. With Bitcoin's global reach, foreign exchange regulations may become more relevant than before, say attorneys with Reyhani Nemirovsky LLP and investment analyst Daniel Gallancy.
Certainly, no defendant wishes to advocate for greater damages. In addition to having to advance such an untenable position for the privilege of gaining access to federal court, there are at least two other issues that a defendant in the Second Circuit should consider before spending the time and money to seek removal of an action when the complaint is ambiguous on its face as to the amount of damages sought, say Andre Cizmarik and Kara Cormier of Edwards Wildman Palmer LLP.
In light of the proposed e-discovery amendments to the Federal Rules of Civil Procedure, businesses need to set themselves up to efficiently respond to discovery and requests for information from their counsel by implementing and following document-control policies as part of normal business practices. The failure to do so will eventually consume vast amounts of employee time, say Steven Cvitanovic and Colin Murphy of Haight Brown & Bonesteel LLP.
The Second Circuit’s opinion in Halebian v. Berv — a significant departure from its own oft-cited Joy v. North decision — highlights that a derivative plaintiff’s entitlement to discovery, if any, is inversely proportional to the showing made by a special litigation committee in support of its motion to terminate, says Donald Corbett of Lowenstein Sandler LLP.
While the sheer volume of tips received this year underscores the impact the U.S. Securities and Exchange Commission whistleblower program has had on enforcement activities in its second year of operation, the continuing pattern of diversity among whistleblowers is also noteworthy. Any concerns about the commission’s ability to adequately publicize the program have seemingly been laid to rest, says Steven Goldschmidt of Ropes & Gray LLP.
Companies should carefully consider the interaction of the various timing requirements under Regulation FD and Form 8-K. Filing of a Form 8-K is not required until four business days after initial disclosure, but to take advantage of the filing exception for nonwritten communications, the earnings call must take place no more than 48 hours after the earnings release is filed on Form 8-K, says Michael Zeidel of Skadden Arps Slate Meagher and Flom LLP.