Expert Analysis

• 6 Key Takeaways From CFIUS Annual Report

  

  Attorneys at Simpson Thacher review highlights from the annual report of the Committee on Foreign Investment in the U.S., released to Congress this month, including the launch of the American First Investment Policy and the Known Investor Pilot Program, and the agency's continued focus on enforcement despite its resource constraints.

• How Drug Trial Prediction Markets Pose Insider Trading Risks

  

  Multiple prediction market platforms have recently announced plans to offer event contracts related to clinical trial outcomes and regulatory decisions, creating new insider trading risks by expanding the group of people possessing related material nonpublic information far beyond traditional corporate insiders, say attorneys at King & Spalding.

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  Law School's Missed Lessons: Surviving A Long Trial

  

  Most of law school trial advocacy is geared toward the sprint of trying a short case, but beyond managing a cross-examination or closing argument, effectively handling the marathon of a lengthy trial requires the ability to maintain composure, organization and credibility with the jury, says Mihir Elchuri at Hirschler.

• Upping Fed, FDIC's Insider Loan Cap May Ease Bank Burdens

  

  Coordinated Federal Deposit Insurance Corp. and Federal Reserve proposals to raise the 1970s-era cap for bank executives borrowing from their institutions represent a long-needed regulatory recalibration that would lighten compliance obligations caused by the outdated ceiling without diminishing the original protections against conflicts of interest, say attorneys at Ballard Spahr.

• How 2 SEC Financial Report Initiatives May Clash In Practice

  

  The Securities and Exchange Commission’s near-simultaneous launch of a new unit to investigate fraud by accounting and audit professionals and its proposal to let public companies file less frequent financial reports sets up possible conflicts for issuers and their financial reporters that demand immediate strategic attention, say attorneys at Bracewell.

• Recent OCC Charter Approvals Signal Fintech Momentum

  

  The Office of the Comptroller of the Currency's recent charter approval for Circle, along with faster Federal Deposit Insurance Corp. review procedures, signals a more workable path to national bank and trust charters, meaning fintech firms should prepare regulator-ready applications and plan for intensified competition, say attorneys at Davis Wright.

• Midyear Trends, Takeaways As Securities Class Actions Surge

  

  High numbers of securities class actions through June suggest filings will stay elevated, with factors like changing enforcement attitudes, media scrutiny and the proliferation of potential defendants serving as both cause and effect in increased litigation involving AI-related disclosures, health and tech companies, and foreign issuers, say attorneys at Alston & Bird.

• Bank Charter Denial Offers Road Map For Stablecoin Issuers

  

  The Office of the Comptroller of the Currency's recent denial of Wise's bank charter application signals that stablecoin issuers should expect rigorous scrutiny of anti-money laundering controls, governance, management expertise and affiliate compliance history when applying for federal approval, say attorneys at Katten.

• 3 Ways The SEC's Retail Fraud Reboot Raises The Bar

  

  The U.S. Securities and Exchange Commission's recent revival of the retail fraud working group with an expanded mandate, scope and experienced senior leadership points to a stronger incarnation of the task force with concrete implications for firms managing retail-accessible alternative investments, say attorneys at Fried Frank.

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  Going To Hardcore Shows Makes Me A Better Lawyer

  

  While government contracts law and the hardcore scene may seem entirely unrelated, in my experience, both are about community, focus, being prepared for the unexpected and managing chaos, says Isaac Natter at Fluet.

• How Axing SEC Trade-Through Rule Could Reshape Markets

  

  The proposed elimination of a Securities and Exchange Commission rule that mandates a price benchmark for equity securities trades could allow blockchain-based trades to compete with legacy frameworks in registered markets, potentially serving as a test case for updated regulatory models, say Alex Zozos at Superstate, and Lewis Rinaudo Cohen and Edward Leaf at Cahill Gordon.

• What Regulatory 'Reputation Risk' Purge Means For Banks

  

  Banks should expect closer scrutiny of account closures and service denials after federal regulators recently stripped "reputation risk" from supervisory guidance, and should tie customer decisions to documented, objective legal and financial criteria to protect against debanking-related enforcement, say attorneys at Troutman.

• Del. High Court Ruling Signals Next Post-Jarkesy Phase

  

  The Delaware Supreme Court recently ruled in Swan Energy v. Investor Protection Unit that the jury trial principles underlying the U.S. Supreme Court’s Jarkesy opinion do not compel the same result under the state's constitution, offering state courts a road map for the next phase of administrative enforcement litigation, says Benjamin Lajoie at Nelson Mullins.

• Rethinking Risk And Value In Private Credit Disputes

  

  Private credit disputes will increasingly turn on whether lenders recognized enterprise-value risk and updated marks as borrower conditions changed, making valuation processes, trigger frameworks and portfolio oversight critical for investors and litigants, say Isil Erel at the Ohio State University and Farooq Javed at The Brattle Group.

• 4th Circ. Boeing Class Cert. Ruling May Have Limited Reach

  

  While the Fourth Circuit's recent decision to reverse class certification against Boeing appears to potentially create a circuit split or heighten the standards for achieving class certification, that conclusion overlooks the decision's very specific circumstances, and its impact will likely be limited outside the circuit, say attorneys at Bleichmar Fonti.