By Porter Wright on Even though the Dodd-Frank Act is already in effect, the full scope of the law will not be known until numerous regulations are finalized. Public companies faced with complying with these future regulations should consider taking the following actions now to be ready for the new rules: Decide how often to recommend say on pay … Continue Reading
By Porter Wright on Corporate clients still need to comply with the FTC’s Red Flags Rule by November 1, 2009, but it’s their lawyers who are really unhappy about the regulations. Last week the American Bar Association sued the FTC to stop the FTC’s enforcement of the Red Flags Rule against attorneys. The FTC says the law applies to … Continue Reading
By Porter Wright on On Friday the Cleveland Plain Dealer reported that members of the U.S. House Financial Services Committee bought and sold financial stocks last fall, at the same time that the Committee was approving the bailout, and in the same companies that the Committee would later criticize for incompetence and greed. The article points out two potential … Continue Reading
By Karim Ali on On Wednesday, June 10, Secretary of the Treasury, Timothy Geithner outlined the Obama administration’s new proposals on executive compensation. The proposals focused on greater independence of corporate compensation committees and giving shareholders a nonbinding vote on executive compensation, commonly known as ‘say on pay’ provisions. Geithner outlined five guiding principals for executive compensation, namely: compensation … Continue Reading
By Porter Wright on The FTC has extended the enforcement deadline of its Red Flag Rule to August 1, 2009, for most “creditors” under the Rule that are not already subject to enforcement as financial institutions. The American Medical Association vows to use this extra time to lobby that doctors are not “creditors” under the Rule. The FTC disagrees … Continue Reading
By Porter Wright on The SEC announced yesterday charges against a former Citigroup investment banker who allegedly tipped his friends and family about upcoming mergers involving Citigroup’s healthcare industry clients, resulting in more than $5,000,000 in illegal insider-trading profits. The case highlights a common insider-trading scenario: an employees uses inside information not to trade stock in his or her employer, but … Continue Reading
By Porter Wright on The Federal Reserve and the U.S. Department of Treasury have recently begun new lending to encourage investors to buy securities backed by consumer and small business loans. The lending program, known as TALF for Term Asset-Backed Securities Loan Facility, could be a favorable investment opportunity for large investors at the same time that it provides … Continue Reading
By Porter Wright on Earlier this week the U.S. Senate began consideration of a bill that would require States to obtain the identity of a corporation’s beneficial owners as part of the incorporation process. Most states allow the formation of a variety of business entities without asking for the names of owners. Numerous law enforcement agencies claim criminals use … Continue Reading
By Porter Wright on Senators Grassley and Levin have introduced a bill that would require certain hedge funds to register under the Investment Company Act and the give the SEC the long-desired power it needs to examine them. The SEC tried to regulate hedge funds under the Investment Advisers Act a few years ago, but the D.C. Circuit ruled … Continue Reading
By Porter Wright on The collapse of the market for auction rate securities (“ARS”) left investors who thought they had a safe, liquid investment with illiquid securities. While there have been a number of government settlements with sellers of ARS, the agreements have focused on providing a recovery for small investors, leaving corporate and institutional purchasers of these securities … Continue Reading
By Porter Wright on Porter Wright attorney Thomas Gorman discusses the Bernard Madoff $50 billion Ponzi Scheme on CNBC: www.cnbc.com/id/15840232… Continue Reading
By Porter Wright on The FTC has granted a six-month delay for enforcement of its Red Flag Rules, previously discussed here. Note that the other agencies responsible for the rules, including the National Credit Union Administration, the Federal Deposit Insurance Corporation, the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision … Continue Reading
By Porter Wright on Financial institutions and businesses that extend credit to consumers will soon need to comply with new rules effective November 1, 2008 designed to protect against identity theft. The Federal Trade Commission, Federal Reserve, and other financial regulators have developed the Red Flag Rules under the Fair and Accurate Credit Transactions Act of 2003. The Red … Continue Reading
