On February 26, 2014 the Permanent Subcommittee on Investigations of the Committee on Homeland Security and Governmental Affairs (HSGAC) at the Senate held a hearing, which has become one of the most important steps in its longstanding examination of facilitating tax evasion.
U.S. Chapter 15: a Tool for Implementing Foreign Reorganization Plans in the United States – the Elpida Experience
The Chapter 15 case of Elpida, which was filed in the U.S. in connection with Elpida’s debtor-in-possession proceeding pending in Tokyo, Japan under the Japanese Corporate Reorganization Act (the “JCRA”), has attracted broad attention in Japan and elsewhere. Although not sought in most Chapter 15 cases, and successfully obtained in even fewer cases, U.S. recognition of a foreign plan of reorganization is an important tool available to a Chapter 15 debtor, as such recognition implements the foreign plan in the U.S. and prevents U.S. actions that are inconsistent with the foreign plan.
MSRB Proposes New Conduct Rule for Non-Solicitor Municipal Advisors and Amendments to Books and Records Rules for Municipal Advisors
On January 9, 2014, the Municipal Securities Rulemaking Board (“MSRB”) published a request for comments on a proposed new conduct rule for non-solicitor municipal advisors and amendments to existing books and records rules to include municipal advisors in Regulatory Notice 2014-01 (the “Rule Notice”).
FCC Hard at Work on a Plan to Restore Net Neutrality Rules, Draws Skepticism and Fear
Earlier this year, the DC Circuit in Verizon v. FCC struck down anti-discrimination and anti-blocking policies of the FCC and allowed internet service providers (ISP) to make some traffic run faster or block other services, so long as they disclose this information to all subscribers.
Federal Reserve Adopts Final Rule Implementing Enhanced Prudential Standards for Certain Domestic Bank Holding Companies and Foreign Banking Organizations
On February 18, 2014, the Board of Governors of the Federal Reserve System approved its final rule implementing enhanced prudential standards for certain domestic bank holding companies and foreign banking organizations (the Final Rule). While the Final Rule does not implement every provision of the December 2011 and December 2012 proposed rules, the Final Rule still requires enhanced standards of liquidity, risk management, and capital for covered institutions. Compliance with certain of the provisions of the Final Rule begins January 1, 2015.
Another Blow to Puerto Rico’s Credit Rating
This month, Moody’s downgraded Puerto Rico’s credit rating to junk status. The same week, Standard & Poors, another one of the three main credit rating agencies, dealt the same blow to Puerto Rico’s credit rating. The downgrade knocked the island’s credit rating down to two notches below investment grade status, following another downgrade that occurred last year.
Supreme Court Holds SOX Whistleblower Law Protects Employees of Private Contractors; Yet Full Scope Remains Unclear
On March 4, 2014, the United States Supreme Court held in Lawson v. FMR LLC, 571 U.S. __ , Case No. 12-3 (Mar. 4, 2014), that §806 of the Sarbanes-Oxley Act of 2002 (“SOX”) provides a cause of action for employees of private contractors and subcontractors that are retaliated against for whistleblowing activities.
Event Recap: Systemic Risk and the Financial Crisis
On February 25, 2014, the Berkeley Center for Law, Business and the Economy (BCLBE) hosted a lunchtime talk on Systemic Risk and the Financial Crisis by Prof. Steven L. Schwarcz. Prof. Schwarcz is a Professor of Law & Business at Duke University and is well known for his research and scholarship in the area of financial regulation and systemic risk. In his lecture, Prof. Schwarcz focused on how regulations should address systemic risk – “the risk that the failure of financial markets or firms harms the real economy by increasing the cost of capital or decreasing its availability.”
Chairman Camp’s Proposals Place REITs in the Crosshairs
On February 25, House Ways and Means Committee Chairman David Camp (R. Mich.) proposed a dramatic overhaul of the U.S. tax code (the Code). While the “Tax Reform Act of 2014,” (the Proposals) contains a number of previously released tax law changes, it also includes an unexpected and unwelcome strike on many public REITs.
BCBLE Lecture Series: Eugene Ludwig on Putting Dodd-Frank in Context
On February 24, the Berkeley Center for Law, Business and the Economy (BCBLE) hosted a lunch presentation featuring Eugene Ludwig, founder and CEO of Promontory Financial Group. In his talk titled “Financial Regulation in the Post Reform Era: Putting Dodd-Frank in Context,” Ludwig shared his perspectives on the Dodd-Frank Act and other regulation efforts within the context of earlier cycles of crisis and reform. He discussed what the changes mean for the evolution of the American regulatory model and the transformative potential of the financial services industry.