The Federal Housing Finance Agency on Monday instructed Fannie Mae and Freddie Mac to complete their review of pre-financial crisis mortgage purchases and wrap up their claims against the banks that sold them, an effort that has already resulted in over $18 billion in recoveries.
Quinn Emanuel Urquhart & Sullivan LLP on Monday urged a New York federal judge not to disqualify the firm from multidistrict litigation over credit default swap market-rigging, arguing that previous legal work performed by one of its partners for a defendant has no bearing on the new case.
A senior woman partner once confessed to me that she felt that men were allowed to interrupt but women were not. More than 25 years later, I continue to be frustrated by this dynamic in M&A negotiations but suspect that very few men perceive it, says Elizabeth Raymond, leader of Mayer Brown LLP's corporate and securities practice.
A California state judge Monday barred the state from selling voter-approved bonds to fund its high-speed rail project and ordered officials to rewrite the railway's $68 billion funding plan, finding that it failed to meet all state-law requirements and could wind up wasting taxpayer money.
U.S. financial regulators are under pressure to complete the Volcker Rule's ban on proprietary trading by year's end, but continued conflict among regulators over how severe the rule's trading restrictions should be means banks could be forced to comply with multiple versions of the same regulation.
A Long Island financier and his companies have agreed to pay $1.4 million to settle a U.S. Securities and Exchange Commission suit alleging they bought and sold billions of penny stocks without registering the shares, the agency said Monday.
The trustee recovering money for Bernard Madoff's victims urged the Second Circuit on Friday to overturn a ruling that disallowed suits against so-called Madoff net-winners, arguing he deserves to be able to look back six years to decide who is a net winner.
Investors can pursue allegations that General Electric Capital Corp. and JPMorgan Chase & Co. misrepresented the quality of loans in a $1.9 billion mortgage-backed securities trust, a New York state judge ruled Friday, but limited damages to loans that don't meet underwriting standards.
Morgan Stanley & Co. Inc. told the Second Circuit on Friday to dismiss an appeal in two class actions accusing the firm of violating its fiduciary duty to employees by investing retirement funds in risky company stock, saying the class members had failed to adequately allege their claims.
The U.S. Securities and Exchange Commission has begun settlement talks with one of two men accused of trading on inside information supplied by Hunton & Williams LLP drug patent attorney Robert Schulman, who was allegedly intoxicated at the time of the tip, according to a Friday filing in Florida district court.
The ADT Corp. on Monday said it has agreed to pay over $450 million to buy back 10.24 million shares of the electronic security company’s common stock from hedge fund Corvex Management LP.
A Florida federal judge on Friday ordered jailed Ponzi schemer Scott Rothstein to appear at the criminal trial of one of the lawyers charged in connection with Rothstein’s $1.2 billion scheme to sell shares in sham legal settlements.
The former CEO of Bank of Choice in Greeley, Colo., will pay $65,000 in restitution to settle charges that he violated registration and anti-fraud provisions of the Colorado Securities Act, according to a stipulation filed Thursday in Denver district court.
Investors in $951 million worth of Deutsche Bank AG mortgage-backed securities can pursue allegations that some of the securities' loans were defective, but they can't undo the whole deal based on alleged "fundamental breaches" of the contracts, a New York state judge ruled Monday.
A substantial minority investor in commodity supply chain company MFC Industrial Ltd. on Monday kicked off a proxy fight aimed at a board overhaul, building on a trend of more engaged stakeholders against the backdrop of a surge in shareholder activism.
Morrison & Foerster LLP announced Monday that the former chief legal officer for Allied Capital Corp. and deputy general counsel for Fannie Mae had joined the firm’s Washington, D.C., office as partner in its corporate finance practice.
Activist shareholders concerned about the integrity of CommonWealth REIT's board and its alleged plan to wrest control of the company formally sought Monday to oust the entire body and replace it with a group of “truly independent” members.
Robbins Geller Rudman & Dowd LLP should be sanctioned for pursuing a securities class action suit against The Boeing Co. based on deeply flawed allegations by a confidential witness, the aerospace company told an Illinois federal judge on Friday, arguing the firm’s conduct had "crossed the line."
The receiver for WG Trading Co. on Friday urged a New York federal judge to approve a $3.4M settlement with Credit Suisse International and its subsidiary Zephyros Ltd. in a clawback suit over an alleged Ponzi scheme orchestrated by WG executives.
A New York state judge on Thursday dismissed BGC Capital Markets LP’s allegations that rival brokerage Tullett Prebon America’s Corp. had stolen proprietary U.S. Treasury data through a joint venture between the two, ruling that BGC had already recovered damages through arbitration.
Companies should be aware of the recent modifications to the Investment Advisers Act, which clarify the applicability of U.S. Securities and Exchange Commission regulations to certain “investment advisers” outside the U.S. Given the size and importance of the U.S. securities markets, this act and whistleblower program may apply all over the world, says R. Scott Oswald of The Employment Law Group PC.
In light of the recent Diebold Inc. Foreign Corrupt Practices Act settlements, companies assessing the option of self-disclosure must consider the real possibility that doing so may not shield them from the increased costs and scrutiny associated with the retention of independent compliance monitors, say attorneys with Norton Rose Fulbright.
In contrast to sectors historically targeted by the U.S. Department of Justice and Securities and Exchange Commission, such as pharmaceuticals and energy, the financial services sector — and private equity firms in particular — have managed to avoid the Foreign Corrupt Practices Act limelight. But the landscape appears to be changing, say Amy Riella and Kristen Shepherd of Vinson & Elkins LLP.
The quality of a company’s cybersecurity disclosures is very important. It may be just a matter of time before two factors align — news of a successful cyberattack sends a company’s share price plunging, and the company’s public statements about its cyberdefenses appear in hindsight to have been clearly erroneous, says Anthony Rodriguez of Morrison & Foerster LLP.
The Sixth Circuit’s recent decision in Pharos Capital Partners v. Deloitte & Touche, which arose from a failed $12 million private equity investment, is significant for the financial industry because it dismisses claims pursuant to a so-called “big boy” agreement that allocates risk among sophisticated parties, say Steven Brody and Colleen O’Loughlin of Bingham McCutchen LLP.
Further incentivizing whistleblowers, the U.S. Securities and Exchange Commission recently gave a record $14 million award to a whistleblower whose information led to an enforcement action. But with a thoughtful, values-based approach, this award can be a catalyst for companies to motivate better communication and governance as a whistleblower mitigation strategy, says Michael Bramnick, senior knowledge leader at LRN Corp. and former general counsel of NRG Energy.
In commercial transactions involving secured lending to Cayman Islands vehicles it is a common practice for a charge over the shares of a Cayman company to be included in the suite of securities taken by the lender. As common as this commercial practice has become, the parties often have an imperfect understanding of the unique Cayman aspects of such securities and the considerations relevant to their enforcement, says Tony Heaver-Wren of Appleby Global Group.
The Multijurisdictional Disclosure System is a system developed by the U.S. Securities and Exchange Commission and the Canadian securities regulatory authorities that enables a very different regulatory regime for Canadian issuers. The principal benefit is to allow use of the public filing in the U.S. of a Canadian prospectus that is subject to review only by Canadian securities regulators, says Jonathan Guest of McCarter & English LLP.
While reliance on outside counsel will continue, only 13 percent of companies recently surveyed indicated that increasing the use of outside counsel was of high importance in addressing increases in legal demand. The trend, more notably since the economic crisis of the late 2000s, has been on rigorous management of outside counsel costs — 95 percent of survey participants said they are taking measures to reduce outside counsel spending, says Lauren Chung of HBR Consulting LLC.
Perhaps the private offering arena is ready for the U.S. Securities and Exchange Commission's changes Regulation D. But we suspect there will be many playing catchup and many jaws will drop when market participants begin to fully comprehend these new rules, say Andrew Rosell and Stas Getmanenko of Kelly Hart & Hallman LLP.