A potential merger is on its way as two of high-profile firms prepare to merge which could result in one the biggest firms in the United States. Orrick Herrington & Sutcliffe, which has a very strong base in Silicon Valley, is set to merge with Pillsbury Winthrop Shaw Pittman, which has an equally strong base in New York and Washington DC. One of the leading global law firms in the field of public finance, Orrick also is particularly focused in serving companies in the sectors of technology, energy and project finance. On the other hand, Pillsbury also has a strong presence in the fields of asset finance, technology, energy, and natural resources. This merger would form one of the ten largest firms in the country. In terms of attorney head count, it would be one of the world’s twenty largest firms with a total of approximately 1,700 attorneys and is expected to have an annual revenue of about $1.4 billion.
SEC Investor as Purchaser Subcommittee Issues Recommendations Related to Broker-Dealer Fiduciary Duty
The Investor as Purchaser Subcommittee (the “Subcommittee”) of the SEC’s Investor Advisory Committee (the “Committee”) issued two principal recommendations (the “Recommendations”) regarding SEC adoption of a uniform standard of duty for investment advisers and broker‑dealers engaged in the delivery of personalized investment advice to retail investors.
From the Bench: Sun Capital and its Potential Effects on the Private Equity Industry
A recent federal court ruling has raised some serious concerns in the private equity industry. In Sun Capital Partners III, LP v. New England Teamsters & Trucking Industry Pensions Fund, the United States Court of Appeals for the Third Circuit held that two private equity funds were liable for pension liabilities incurred by a portfolio company in which they invested, based on the fact that the funds were effectively engaged in a “trade or business” for the purposes of the Employee Retirement Income Security Act of 1974 (ERISA).
Consumer Financial Protection Bureau Clarifies New Mortgage Servicing Rules
The Consumer Financial Protection Bureau (CFPB) recently issued an interim final rule, as well as an explanatory bulletin, to further detail and clarify the requirements of the agency’s mortgage servicing rules that were finalized in January 2013 (the Servicing Rules). The Servicing Rules implement the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amending the Real Estate Settlement Procedure Act of 1974 (RESPA) and the Truth in Lending Act (TILA) to provide borrowers with more detailed information regarding their loans, ensure that borrowers are not unexpectedly assessed charges or fees, and inform borrowers of alternatives to foreclosures.
IPO Alert: Chinese Internet Behemoth Alibaba plans IPO in the U.S.
After a period of breathtaking growth, China’s biggest e-commerce company, Alibaba, has recently planned its initial public offering. Now the two major U.S. stock exchanges are ready to fight for the right to host. Though it has not been announced yet, Alibaba’s plan to raise $10 to $15 billion will likely overshadow Twitter’s highly anticipated Nov. 15 listing on the New York Stock Exchange. Relatively loose regulations in the United States, in contrast to Hong Kong’s stringent regulations, may be the fundamental factor that contributes to the biggest IPO since Facebook’s rocky debut last year.
SEC Proposes Rules on Crowdfunding
On October 23, 2013, the Securities and Exchange Commission (SEC) proposed rules which would, if adopted, govern the offer and sale of securities under new Section 4(a)(6) (the “Crowdfunding Exemption”) of the Securities Act of 1933 (Securities Act), provide a framework for the regulation of registered funding portals and brokers, and exempt securities sold pursuant to the Crowdfunding Exemption from the registration requirements of Section 12(g) of the Securities Exchange Act of 1934 (Exchange Act).
Tomorrow’s Fantasy Football: Owning Stock in Players
A San Francisco-based startup has created a new financial product that may push sports betting to a new level, challenging regulators and existing law.
Fantex, Inc. wants you to buy stock in Arian Foster, the Houston Texan’s Running Back. As an investor, you can receive up to 20% of Foster’s future earnings from his playing contracts, endorsement deals, broadcasting contracts, or any other income that he receives from contracts attributed to his brand.
Out of Context- Delaware Clarifies on “Weak” Fairness Opinions
A footnote in a recent Delaware decision should relieve some of the anxiety felt in the investment banking community that the courts were inviting plaintiffs to allege fiduciary duty breaches by a target board in any sale where the fairness opinion analysis could be perceived as “weak.”
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Federal Judge Must Decide: Is Detroit Bankrupt?
Watching the Tigers lose to the Red Sox on Saturday was a little sad because if anyone needs a win, it is the city of Detroit. Saddled with massive debt and struggling to deliver basic services to its citizens, no one can deny that the city is in trouble. Now the question looms: is it bankrupt? U.S. Bankruptcy Judge Steven Rhodes started hearing arguments on Wednesday morning in the largest municipal bankruptcy filing in U.S. history—the City of Detroit wants to file for Chapter 9 bankruptcy.
International Business: Airline Regulatory Woes on Both Sides of the Atlantic
The past few weeks have seen the airline industry suffer from regulatory issues both in the U.S. and abroad.
In the United States, the proposed merger of American Airlines and U.S. Airways is causing a headache. Officially bankrupt since 2011, American Airlines’ bankruptcy exit plan was approved by a federal judge in late September of this year, such plan being contingent upon its merger with U.S. Airways going ahead successfully.