Congress and White House personnel are attempting to raise the financial threshold for a banking institution to be considered a “Systematically Important Financial Institution” (SIFI). On its face, this may seem to bring about banking reform; however, this would lead to a dramatic decrease in federal oversight and transparency. Considering the 2008 financial crisis, it […]
$150 Billion Spark Bipartisanship and Changes the Definition of “Worthy”
A New Approach to Financial Regulatory Enforcement
The regulatory enforcement of the financial industry may soon change. As the new administration settles into Washington; reports have suggested the rise of dedicated efforts to change, and potentially reduce, financial regulation by the Securities and Exchange Commission (“SEC”) and the Consumer Financial Protection Bureau. While these efforts have not yet fully materialized, there are […]
After 12 Years, A.I.G.’s Former Chief Executive Agreed to Settle in Accounting Fraud Case
On February 10, 2017, Maurice Greenberg (A.I.G’s former CEO) and his co-defendant Howard Smith (A.I.G.’s former CFO) agreed to settle with New York Attorney General, Eric T. Schneiderman on an accounting fraud case that lasted for more than 12 years. That settlement ends a civil case that began in 2005 under Spitzer – the then-New […]
Morgan Stanley Accused of Facilitating Unethical Sales Contests
On October 3, 2016, Morgan Stanley was charged with “dishonest and unethical conduct” by a top Massachusetts securities regulator. Morgan Stanley is accused of facilitating high-pressured sales contests in Massachusetts and Rhode Island, where brokers had the opportunity to earn thousands of dollars for selling high volumes of securities based loans. Securities based loans allow […]
Retirees Win Against Mining Industrialist
In a nearly unprecedented turn of events, the occupant of one of the largest single-family dwellings in the U.S., mining industrialist Ira Rennert, has settled with a group of retirees from one of his subsidiary companies and agreed to pay their pensions in full. In 2011, Rennert’s conglomerate, Renco, purchased R.G. Steel for $1.2 billion. […]
High Frequency Trading, Dark Pools, and Call for a New Stock Exchange
The volatility of the stock market requires no introduction. It has long been acknowledged that the volatility is as much a reflection of non-economic factors as economic ones. An understanding of trends, based on both economic and non-economic factors, and the time that investors take to react to changes in the stock market can be […]
Administrative Judge Raises S.E.C’s Burden to Convict Insider Trader
In a pivotal 1983 ruling, the Supreme Court held that to find a breach of duty to stockholders resulting in “insider trading,” a party must prove that a personal gain, either material or immaterial, resulted from confidential information provided by a trading relative or “friend.” The Court, however, left ambiguous the term, “friend” for over […]
Update: Argentina’s Debt Crisis Continues as Debt Swap Legislation is Proposed
After a rocky summer, Argentina is trying to push itself through its recent debt default by proposing new legislation that could potentially pull the country out of its current financial crisis. Last week, in a speech addressed to the nation, President Cristina Fernández announced a plan for legislation that would allow bondholders to swap “their […]
White House Mortgage Policy Advances Housing Finance Reform
While the economy has been improving since the financial crisis, the housing market has been slow to recover. The White House has proposed a plan to help homeowners refinance their mortgages while Congress has proposed the Housing Finance Reform and Taxpayer Protection Act of 2014 (introduced in 2013) as part of the greater system of […]
Secondary Private Equity Investments on the Rise
The rising stock market has increased corporate valuation of companies. This surge has given the secondary private equity market a new life. According to Bloomberg Private Equity M&A database, secondary private equity transactions year-to-date stood at $25.6 billion with a total of 97 deals. Prior to this, the highest activity for secondary private equity market […]