In the Uber v. Lyft competition, it seems like Lyft has experienced a serious setback in New York when it tried to launch its services in the Big Apple last week. New York Attorney General Eric Schneiderman and Benjamin Lawsky, Superintendent of Financial Services, filed for a temporary restraining order (“TRO”) to stop Lyft from launching its ride-sharing service.
SunTrust Agrees to Mortgage Settlement with the Department of Justice
On Thursday, July 3, SunTrust agreed to pay $320 million in a settlement with the Department of Justice (“DOJ”) after an investigation of alleged violations of the Home Affordable Modification Program (“HAMP”). The settlement funds intend to provide relief to borrowers who were adversely affected by SunTrust’s actions; a prevention fund will also be established as a result of the settlement.
An Executive Summary and Overview of the EB-5 Program
U.S. Citizenship and Immigration Services (USCIS) administers the Immigrant Investor Program, also known as “EB-5,” created by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors. Under a pilot immigration program first enacted in 1992 and regularly reauthorized since, Congress has allocated 10,000 EB-5 visas for investors designated by USCIS based on proposals for promoting economic growth. Of the 10,000 visas available annually for immigrant investors, 3,000 are reserved for investments in Targeted Employment Areas and another 3,000 are set aside for investment through the Regional Center Program.
SEC Staff Provides Guidance on Summary Section of Mutual Fund Prospectuses
The staff of the SEC’s Division of Investment Management issued IM Guidance Update No. 2014-8 (the “Guidance Update”) to provide guidance based on comments the Division has provided on the information required to be presented in standardized order at the beginning of mutual fund statutory prospectuses (the “Summary Section”) in response to Form N-1A Items 2 through 8. This is also the information required in a summary prospectus provided to investors pursuant to Rule 498 under the Securities Act of 1933.
France Lashes Out Against Dollar in Wake of BNP Paribas Ruling
Last week French global banking giant BNP Paribas (BNP) settled with U.S. authorities in a case which they were convicted of committing large-scale violations of U.S. economic sanctions. BNP’s guilty plea cost them $8.9 billion in fines along with a temporary ban on dollar-clearing transactions.
The ruling has brought to the forefront the issues that arise with the dollar’s monopoly over international transactions. According to U.S. law, banks are subject to U.S. economic sanctions in any processing of U.S. dollar transactions, even if the operations include non-U.S. branches.
The Commercial Drone Phenomenon
Commercial drones are quickly becoming a reality. Medical companies, energy companies, retail stores and many others have petitioned the Federal Aviation Administration (“FAA”) to lift the ban on flying drones, known as unmanned aerial systems (“UAS”), for commercial use. The following companies have made recent headlines for their plans to use commercial drones.
The DOJ’s Big Defeat in Rengan Rajaratnam Insider Trading Trial
Rengan Rajaratnam was found not guilty of conspiracy to commit insider trading – a big defeat for Preet Bharara, the United States attorney for the Southern District of New York. The jury reached a verdict following only a few hours of deliberations, putting the first black mark on Bharara’s record which includes 85 convictions of traders, analysts, and industry consultants on Wall Street. The Department of Justice (“DOJ”) faced significant setbacks throughout the trial, leading to a loss which may diminish the DOJ’s recent strength in prosecuting insider trading. The DOJ’s prior prosecution of Rajaratnam’s older brother, Raj, which resulted in an eleven year prison sentence placed the DOJ in a position of strength at the beginning of Rengan Rajaratnam’s trial. However, Judge Buchwald, a United States District Judge for the Southern District of New York, has taken the wind out of the DOJ’s sails in this case.
SEC Adopts Security-Based Swap Cross-Border Definitional Rule
On June 25, the SEC adopted the first in a series of rules governing the cross-border reach of its security-based swap regulatory regime. The rules define the term “U.S. person” and provide the test for counting cross-border security-based swap transactions to determine whether a firm must register as a security-based swap dealer or a major security-based swap participant. The final rules also provide a process by which market participants or non-U.S. regulators can request that the SEC make a determination that a foreign regime’s security-based swap rules are comparable to the SEC’s, thereby permitting market participants in that jurisdiction to meet SEC rules through compliance with local law. Finally, the rules provide clarification of the SEC’s view of the cross-border application of its anti-fraud authority for all securities.
Read the rest of the article here.
IMF Forecasts Slower Momentum for Worldwide Economic Growth in 2015
Today, Managing Director of the International Monetary Fund (“IMF”), Christine Lagarde gave a talk at the Davos at Provence meeting in France where she discussed the IMF’s forecasts on worldwide economic growth. The IMF’s global economic outlook will be released later in July, but the outlook could be similar to the report released earlier in April. In April, the IMF “had forecast that global output would grow by 3.6 percent in 2014 and 3.9 percent in 2015.”
Hotel Lawyer: What is Happening with Chinese Real Estate Companies Investing in Banks?
Concerns over a real estate bubble in China
For decades, China was referred to as the “sleeping giant.” This reference is to the great potential impact of the country, its vast population, and its economy, but also to the fact that this potential was largely unrealized for hundreds of years. Well, the sleeping giant is awake! And the world financial press is now full of analysts following China and the international ramifications of its every action on the world economy.