These are some of the compliance-related stories I set aside to read this holiday weekend.
What Do Rating Agencies Think about “Too-Big-to-Fail” Since Dodd-Frank? by
Is it possible that, while S&P still expects support for some BHCs, the perceived strength of support has decreased and is now negligible? A look at the chart below reveals a mixed picture. According to S&P, the strength of government support has weakened (as indicated by progressively lighter shading for the uplift measure). However, as the black line suggests, the number of BHCs that could receive support has remained unchanged. In S&P’s view, four large U.S. BHCs (representing 31 percent of the total BHC assets) still retain one notch of uplift relative to their main commercial bank, two notches down from the height of the crisis. [More..]
The Role of Chief Compliance Officers Must be Supported by Luis A. Aguilar in the Harvard Law School Forum on Corporate Governance and Financial Regulation
Recently, a fellow Commissioner issued a public dissent in two recent enforcement actions against CCOs of investment advisers. While I respect the views of my fellow Commissioners, based on what I’m hearing from the CCO community, the dissent, and the resulting publicity, has left the impression that the SEC is taking too harsh of an enforcement stance against CCOs, and that CCOs are needlessly under siege from the SEC.
Thus, I am concerned that the recent public dialogue may have unnecessarily created an environment of unwarranted fear in the CCO community. Such an environment is unhelpful, sends the wrong message, and can discourage honest and competent CCOs from doing their work. [More…]
Frequently Asked Questions about Regulation A+ by Alexander J. Davie in Strictly Business
While there are a lot of people very excited about Regulation A+ and its possibilities, the reality is much more modest. Here are some of the common questions I receive from clients and potential clients about Regulation A+ and the answers I give in response: [More..]
FIN4 May Have Embarked on a Risky Hacking/Insider Trading Strategy by David Smyth in Cady Bar the Door
[W]e learn that the SEC and the Secret Service are investigating a sophisticated computer hacking group known as “FIN4” that allegedly “has tried to hack into email accounts at more than 100 companies, looking for confidential information on mergers and other market-moving events. The targets include more than 60 listed companies in biotechnology and other healthcare-related fields, such as medical instruments, hospital equipment and drugs.” Apparently their plan is to harvest this information and then trade on it. Nobody knows where FIN4 is from. They could be overseas, but supposedly their English is flawless and they have a deep knowledge of how financial markets work, so maybe they’re in the United States. At one level, a little terrifying! [More….]
Pink Flamingos and the Compliance Audit by Tom Fox in the FCPA Compliance and Ethics Blog
The creator of one of the most ubiquitous symbols of mid-century Americana died earlier this week. Don Featherstone, the creator of the pink plastic lawn flamingo, the ultimate symbol of American lawn kitsch, has died. He was 79. Featherstone, a trained sculptor with a classical art background, created the flamingo in 1957 for plastics company Union Products, modeling it after a bird he saw in National Geographic. Millions of the birds have been sold. Whether you think of the Pink Flamingo as a symbol of Miami Vice, Jon Waters and Devine or for something less salacious, here is to Featherstone, a true original.
While Featherstone created one of the ultimate symbols of the second half of the 20th century for a generation of South Floridians, the Japanese company Takata Corporation (Takata) continues to be in the news for much less prestigious reasons. As reported in the New York Times (NYT), in an article entitled “Senate Panel Says Tanaka Cut Audits on Safety”, Hiroko Tabuchi and Danielle Ivory said “In the middle of what would become the largest automotive recall in US history, the Japanese airbag manufacturer Takata halted global safety audits to save money”. Interesting (or perhaps ominously might be a better word) Takata responded by saying it had not halted safety audits for products but rather for worker safety. Doesn’t that give you some comfort? [More…]
DOJ Joins Instagram … Your Move, SEC! by Bruce Carton in Compliance Week
The DOJ sees your Pinterest account, SEC, and raises you an Instagram account! Today the DOJ announced on the front page of its website that it has taken the Instagram plunge. [More…]
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July Fourth Fireworks is by Ethan Bagley
CC BY NC SA
