Showing archive for: “Financial Regulation”
The Durbin Fee
Given the crucial role debit card “swipe” fees played in causing the recent financial crisis, Illinois Senator Dick Durbin insisted that the Dodd-Frank law (you know, the one that left Fannie and Freddie untouched) impose price controls on debit card transactions. Ben Bernanke, who apparently doesn’t have enough on his plate, was tasked with determining banks’ processing and fraud-related costs ... The Durbin Fee
Another move to over-fiduciarize investing
The WSJ comments on a dumb proposal by the Employee Benefits Security Administration to broaden the definition of “fiduciary” to cover brokerage services with respect to retirement accounts. As the WSJ notes, For decades the finance industry has provided investors roughly two kinds of services: the “advisory” model, in which an investment professional makes trading ... Another move to over-fiduciarize investing
Short-selling and market efficiency
Another day, another paper showing evidence of the negative effect on market efficiency of bans on short-selling. Today it’s Yerkes, Regulatory Trading Restrictions, Overvaluation, and Insider Selling. Here’s the abstract: A contentious debate is emerging over the regulatory response to the financial crisis. This paper takes advantage of a rare opportunity to empirically test sweeping ... Short-selling and market efficiency
SEC Commissioner Kathleen Casey steps down
Commissioner Casey announced that she is stepping down from the SEC. SEC Commissioner Kathleen L. Casey announced that she is leaving the agency today, having completed her five-year term on June 5 of this year. Commissioner Casey was sworn in on July 17, 2006, and has been a staunch advocate of the agency’s mission to ... SEC Commissioner Kathleen Casey steps down
Efficiency, Competition, Capital Formation, Investor Protection, Apple Pie and Puppies
One of the things that I hope to spend more time doing now that I have returned to the blogosphere is open-source article writing. By that I mean blogging about an article idea and updating it as I progress. Some say it’s a bad plan…people might steal your ideas, or maybe you expose yourself to ... Efficiency, Competition, Capital Formation, Investor Protection, Apple Pie and Puppies
Some implications of the proxy access decision
Bloggers have had much to say about the DC Circuit’s proxy access decision. Of special note is our own Jay Verret and Steve Bainbridge, who adds a useful roundup. I have a few additional comments. First, I want to pick up on Jay’s comment that the decision shows the SEC “is an agency with too many ... Some implications of the proxy access decision
The Curious Case of the Proxy Access Rule
Well, well. It looks like the heatwave hitting DC has encouraged the Judges on the panel reviewing the SEC’s proxy access rule to finish their opinion earlier than expected. The rule has been struck down by the DC Circuit as arbitrary and capricious for failure to meet the SEC’s mandate to consider the effect of ... The Curious Case of the Proxy Access Rule
The return of privlic equity
It’s been over four years since the heyday of the last boom when I first discussed what I called “privlic equity” in an article about Blackstone’s proposed IPO. So here we are post-bust, and according to the WSJ, they’re baack: Apollo Global Management LLC became a public company in late March. Last year, KKR & ... The return of privlic equity
Cassandra, the Fear of Overregulation, and the CFPB
In the Huffington Post, Marcus Baram warns against those who claim to be concerned about over-regulation on Wall Street and in the consumer protection sphere. Baram writes: Today, Wall Street is again on the attack against a regulatory overhaul that includes more stringent investor and consumer protections. Though the financial landscape is far different and ... Cassandra, the Fear of Overregulation, and the CFPB
Making a statement under 10b-5
Janus Investment Fund’s (JIF) prospectus included a misstatement about market timing. Its investment adviser and administrator is Janus Capital Management (JCM). Plaintiff shareholders in the parent company, Janus Capital Group (JCG) argue in the Supreme Court that JCM should be liable as JIF’s manager for “mak[ing] an[] untrue statement of a material fact” in violation ... Making a statement under 10b-5
Where have all the lawyers gone: working for hedge funds every one
Dan Fisher discusses how Ecuadorean villagers financed a pollution lawsuit against Chevron with money from a hedge fund, Burford Group. This is yet another example of how lawyers are capitalizing and packaging their skills rather than just selling it by the hour to clients. Fisher discusses how the plaintiffs’ lawyer had gone through $6 million in financing ... Where have all the lawyers gone: working for hedge funds every one
Levin and Goldman
Pandering and scapegoating are not new activities for politicians, but Carl Levin has perfected these dark arts. Most recently the Senator’s game has been to demonize Goldman, culminating in accusations that its ceo, Lloyd Blankfein, engaged in criminal behavior. Per WaPo last April, Levin said federal prosecutors should review whether to bring perjury charges against ... Levin and Goldman
