Enhancing regulations is meant to protect consumers. The side effect is often to protect the large incumbent firms and make it more difficult for smaller firms to thrive. This theory is proving true under Dodd-Frank. A study by Marshall Lux and Robert Greene on community banks found that since Dodd-Frank community banks have lost market … Read more »
Excessive Travel as a Bribe Under the FCPA
The recent PTC Case caught my attention for a few reasons. First, the company is based near my house and I biked past it’s headquarters this past weekend. Second, the actions stated in the headline were not good, but seemed to be at the extreme of what I thought would be considered bribery. According to … Read more »
Can Money Buy An Election?
When Jeb Bush dropped out of the Presidential race this weekend, my first thought was about all that money. Running for elected office costs too much money and all that money is seen a corrupting influence. One of the most controversial rulings was Citizens United that broadened the rights of corporations and unions when comes … Read more »
Compliance Bricks and Mortar for February 19
These are some of the compliance related stories that recently caught my attention. Private Equity’s Unintended Dark Side by Alexander Ljungqvist, Lars Persson and Joacim Tåg in the CLS Blue Sky Law Blog But what about more long term consequences of buyouts? In a recent paper, we explore whether private equity could, inadvertently, impose a … Read more »
If You Recommend It, You Have to Mean It
The Securities and Exchange Commission charged an investment bank’s research analyst with publishing a rating on a stock that was inconsistent with his own view. Charles P. Grom gave a public “buy” recommendation to the retailer Big Lots, but privately expressed his concerns about the company. “We just had them in town so it’s not … Read more »
506(c) Enforcement Actions
Although I had a lot of hope that the changing of private placement advertising restrictions by the Securities and Exchange Commission would remove potential foot-faults from the fundraising process, the end result proved challenging. Now it appears that the SEC is on the brink of challenging firms that took at advantage of the loosened restrictions. … Read more »
Compliance and Supreme Court Nomination
One of the most important roles of the President is appointing judges to the bench, with an opening on the Supreme Court being the most important. We are set for another battle over an opening because the process lacks a set of policies and procedures. The vast majority of Supreme Court cases are uninteresting except … Read more »
Compliance Bricks and Mortar for February 12
These are some of the compliance-related stories that recently caught my attention. CFTC Can’t Give Whistleblower Money Away by Jean Eaglesham in the Wall Street Journal Since its Whistleblower Program was launched in 2011, the Commodity Futures Trading Commission has spent more on administrative costs than it has paid out in bounties, according to a … Read more »
Compliance Across Industries
One of the puzzling aspects of compliance is that it means vastly different things across industries. What compliance means to a bank is very different from what compliance means to a drilling company. I think the reasons are obvious: regulatory requirements. In a highly regulated industry, there will be a greater focus on complying the … Read more »
Compliance and the Presidential Candidates
With the New Hampshire primary complete, the field of presidential candidates will continue to become smaller. Some of those dropping out may lower their expectations to Vice President or go back to their day jobs. Registered investment advisers have to worry about those day jobs when it comes to campaign donations. Under SEC Rule 206(4)-5, … Read more »