Tagged: SEC

Galleon insider-trading probe widens

Widening the insider-trading probe involving Galleon hedge-fund founder Raj Rajaratnam, federal prosecutors reportedly now are examining if a Goldman Sachs board member gave inside information about the Wall Street firm during the height of the financial crisis.  Law Professor Tamar Frankel, an authority on securities law and author of “Trust and Honesty: America’s Business Culture […]

SEC trys to bolster enforcement image

For the past year the Securities and Exchange Commission has been trying to toughen up its weakened image.  But it still faces skepticism about its ability to adequately enforce laws against corporate crime.  Law Professor Tamar Frankel, an authority on securities law and author of “Trust and Honesty: America’s Business Culture at a Crossroad,” says […]

BofA settlement with SEC okayed

A federal judge okayed a $150 million Bank of America settlement with the SEC to end civil charges accusing the nation’s largest bank with misleading shareholders when it acquired Merrill Lynch.  But law Professor Elizabeth Nowicki, both a former SEC and Wall Street attorney, says it is likely a short-lived “win” for BofA because the judge […]

BofA balks at SEC settlement

Bank of America is balking at suggestions from a federal judge that an outside compensation consultant be appointed as part of BofA’s settlement with the SEC.  The judge has twice rejected as too small settlement proposals in the case involving BofA not disclosing both losses and bonuses when it merged with Merrill Lynch.  Law Professor […]

BofA/S.E.C. settlement still unsettled

Federal Judge Jed Rakoff suggests he may reject a $150 million proposed deal reached between Bank of America and the Securities and Exchange Commission to settle charges the bank misled shareholders when it took over Merrill Lynch.  Law Professor Elizabeth Nowicki, once an S.E.C. attorney, says she’s sympathetic to the S.E.C, but applauds the judge’s […]

SEC crimps money-market funds

Seeking to avoid another financial meltdown, the S.E.C. issued new rules requiring money-market funds to hold more liquid assets and pay out less interest.  Law Professor Tamar Frankel, a securities law authority, says the new regs are puzzling in that they’ll only diminish returns on such funds that investors know such are not FDIC insured. “Perhaps the time […]

SEC sues Bank of America

Without admitting guilt, Bank of American paid a $33 million fine after the SEC sued it for lying to investors about the payment of $5.8 billion in bonuses to Merrill Lynch employees after BofA bought Merrill.  School of Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial law, says it’s an […]

Bounty for financial fraud whistleblowers?

The inspector general probing the SEC’s failure to discover Bernard Madoff’s $65 billion Ponzi scheme recommends that whistleblowers should be paid a bounty for information about financial fraud.  School of Law Professor Tamar Frankel, an authority on securities law, says such rewards would be a two-edged sword and probably limited to outsiders (insiders thereafter couldn’t […]

Brokers and “fiduciary” duty

Individual investors can benefit from a proposal within the Obama regulatory reform plan that obliges brokers to put their client’s interest ahead of their own and act with a higher “fiduciary” standard.  School of Law Professor Tamar Frankel, an expert on fiduciary law, can discuss how it would clear up the blurring of when the […]

Crackdown on OTC derivatives coming

Sources say the SEC and the Commodity Futures Trading Commission are drafting legislation to split responsibility for cracking down on over-the-counter trading of derivatives like credit default swaps.  School of Law Professor Tamar Frankel, an authority on securities law, can discuss the possibilities. “It’s time for regulators to remember their mission and cooperate.” Contact Tamar […]