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.”
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.
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.
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.
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.
On Monday U.S. state and federal authorities announced a criminal case against France’s BNP Paribas, which has pleaded guilty to several U.S. sanction violations. According to the Justice Department, BNP concealed billions of dollars in transactions for clients in Cuba, Iran, and Sudan and has agreed to pay $8.9 billion in fines.
The agreement by the French bank to plead guilty is the first time that a global bank has agreed to plead guilty to large-scale violations of U.S. economic sanctions. Along with the monetary penalty that BNP must pay, the settlement includes a temporary ban on dollar-clearing transactions and the cutting of ties with some employees.
In Halliburton Co. v. Erica P. John Fund, Inc., the Supreme Court decided a much-awaited case regarding the ability of investors to file a class action suit against a company for fraud. The Court held that “investors can recover damages in a private securities fraud action only if they prove that they relied on the defendant’s misrepresentation in deciding to buy or sell a company’s stock.”