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.
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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.
Rise in Global Mergers
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.
Supreme Court Clarifies Federal Bank Fraud Statute in Loughrin v. United States
On June 30, 2014, the U.S. Supreme Court issued its final opinions and concluded its 2013-2014 term. Among the Court’s recently decided cases is Loughrin v. United States, where the Court clarified that Section 1344(2) of the federal bank fraud statute does not require intent to defraud.[i] The Court’s decision impacts federal bank fraud prosecutions, but may also impact bank compliance personnel and in-house counsel.
A Look at Some of the U.S. Supreme Court’s Biggest Decisions of the Term
On June 30, 2014, the U.S. Supreme Court concluded its 2013-2014 term. The Court will reconvene for the 2014-2015 term on October 6, 2014. Here is a snapshot of some of the Court’s biggest decisions of the term.
Supreme Court Ruling in Halliburton II is a Partial Win for Defendants Facing Securities Class Actions
Yesterday, the U.S. Supreme Court issued its long-awaited decision in Halliburton Co. v. Erica P. John Fund, Inc. (“Halliburton II”), resulting in a partial win for defendants sued in putative securities fraud class actions.