An international group of financial policy makers, the Financial Stability Board (FSB), designed a framework seeking to keep 30 of the world’s biggest banks from becoming “too big to fail” and having to resort to taxpayers-backed bailouts in the event of a future financial crisis. The “too big to fail” conundrum refers to the government […]
U.S. Proposes to Cut Back on Solar Installation Tax Credits by 2017
By the end of next year, the U.S. will cut back on tax credits for wind and solar. Solar power’s most prominent tax credit will expire at the end of 2016, with the most significant tax credit for wind power having already expired. Currently, federal subsidies provide residential solar installers with a thirty percent tax […]
Can Artificial Intelligence Protect Us From Cybercrime?
According to Symantec’s Norton Report, the global cost of cybercrime was $113 billion in 2013. That is an astounding number. Human beings tend to be the biggest barriers to computer security in the sense that passwords are predictable, random USB drives do not cause pause, and we routinely visit less than secure websites. The U.S. […]
Marriott to Acquire Rival Starwood Hotels in $12.2 Billion Deal
On November 16, 2015, Marriott International announced that it is acquiring its rival Starwood Hotels & Resorts Worldwide in a $12.2 billion deal, becoming the largest hotelier in the world. The deal brings Starwood’s 11 brands, including W Hotels, St. Regis, and Westin, together with Marriott’s 19 brands, which include Ritz-Carlton, Residence Inn, and Courtyard. […]
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 […]
Pharmaceutical Price Hikes Prompt Senate Action
The desire to reduce healthcare costs may have finally reached critical mass with the latest drug price hikes, prompting a U.S. Senate panel to launch an investigation regarding the ethicality of such increases. The Senate panel’s actions come after several recent drug acquisitions resulted in an exponential increase in prices, including the 5000 percent price […]
Mandatory Arbitration Clauses Under the Spotlight
In recent years, the use of mandatory arbitration clauses by corporations has increased following several Supreme Court decisions. Most credit card, cellular phone, utility, Internet purchase, and employment contracts today require customers and employees to sign lengthy and nebulous agreements that mandate private arbitration for any disputes arising from the contract. Some commenters feel that […]
Maker of ‘Candy Crush’ Acquired by ‘Call of Duty’ Mastermind
Two of the highest-grossing video games are set to become unlikely siblings due to an announcement made last Monday by Activision Blizzard (ATVI) to acquire King Digital Entertainment (King) for $5.9 billion. ATVI, the creator of console video-games such as ‘Call of Duty,’ is valued at roughly $25 billion, making it one of the video […]
SEC as Investigator, Prosecutor and Judge: Defendant’s Right to Jury Trial
The New York Times recently ran an article criticizing SEC’s filing of securities cases before its own judges—administrative law judges employed by the SEC. Last year, the Wall Street Journal weighed in against SEC being prosecutor and judge in its own cause. On a practical level, the criticism is that SEC is filing more cases […]
In The Peak Of A Hedge Fund Asset Crisis, The Supreme Court Might Have Just “Broke The Camel’s Back” For Investor Confidence In Hedge Funds
The Supreme Court rejected the petition for certiorari in United States v. Newman last month—a case about insider trading. In so doing it reaffirmed the Second Circuit Court of Appeals’ decision, which held that liability for insider trading requires proof of (1) that the discloser received a personal benefit, and (2) that the person receiving […]