Securities Regulation & Law Report Index-Summary

BACKDATING STOCK OPTIONS

BANKING

– Attorneys' fees, bank officials named in derivative claim not entitled to indemnification from former colleagues dismissed from action (D.D.C.), 913
– Bear Stearns collapse, claims consolidated by subject matter (S.D.N.Y.), 47
– Capital requirements

– – Buffer development is difficult but critical, international group says, 1245
– – EU member states call for new charter at G-20 summit, 349; measures to be presented, 350; Treasury sets out policy statement, 1669

– Cash sweep programs, fraud claims dismissed (S.D.N.Y.), 1446
– Central banks, current risk exposure is almost unprecedented, survey says, 969
– Check fraud, FINRA warns of scheme involving fake instruments, 1367
– China concerned re devaluation of dollar from issuance of Treasuries, 254
– Consumer protection agency, Dodd (D-Conn) proposes as part of regulatory restructuring, 1097; further developments, see LEGISLATION, FEDERAL, HR 3126
– Cross-market regulation, Pitt calls for “uber” regulator, 965
– Cumulative voting, Bank of America may not omit proposal (SEC No-Action Letter), 99
– Currency fraud, provision of services to fraudster was not aiding and abetting (2d Cir.), 1966
– Debt securities, FASB to issue impairment accounting guidance, 69
– European Union

– – Regulatory oversight, revisions and increased funding, 159; broad legislative agenda introduced, 402; legislative agenda outline, 403; agreement reached on framework to revamp financial supervision, 1144
– – Securitizations, EC proposes new disclosure requirements, 1353
– – Troubled assets, principles for intervention by member states, 255

– Executive compensation

See EXECUTIVE COMPENSATION

– Fair value

See FAIR VALUE

– Financial stability

– – G-20 to establish new Financial Stability Board to implement regulatory reform, 599; compensation guidelines to be proposed, 1728
– – Plan, Geithner outlines to Senate Banking Comm., 264

– France, bonuses, new calculation rules for stock traders, 254
– Holding companies

– – Federal Reserve application processing may be eased to avoid delay in troubled bank acquisitions, 747
– – Futures position limits, Sanders (I-Vt) asks CFTC to classify bank holding companies as “noncommercial” participants, 1081
– – Leverage, Sirri defends SEC rules, 651
– – Resolution as alternative to bankruptcy, Bair outlines ideas to conferees, 807

– Investment banks

– – Class actions, financial sector was largest target for filings in 2008, study finds, 665
– – Conflict of interest, claims against Morgan Stanley for IPO practices dismissed (S.D.N.Y.), 270
– – Enron, banks did not owe disclosure duty to shareholders, class action dismissed (S.D. Tex.), 506
– – Insider trading, banker and family charged in nationwide tipping scheme (N.D. Cal.), 804
– – Jurisdiction, claims against Stifel, Nicolaus by school district remanded to state court (E.D. Wis.), 771
– – Medical management company, post-acquisition action falls under SLUSA Delaware carve-out (9th Cir.), 258
– – Parmalat collapse, claims against investment banks fail to allege knowledge or assistance in fraud, dismissal proper (2d Cir.), 323; correction, 438; (U.S., rev den), 1859
– – United Kingdom

– – – Insolvency, Treasury releases report and seeks comment, 909
– – – Transaction reports, FSA fines Barclays for failures, 1671

– – Unregistered stock, secret underwriter faces SEC claims it helped company circumvent Regulation E (D. Nev.), 662

– Italy, derivatives sale fraud, assets seized from non-Italian banks, 820
– Japan, Financial Services Agency announces financial system health measures, 458
– Loan loss

– – Accounting, SEC encourages revisiting MD&A disclosures, 1599
– – Reserves, Grant Thornton suggests regulators dynamically adjust capital requirements, 946

– Mergers and acquisitions

See MERGERS AND ACQUISITIONS

– Mutual funds, excessive commissions and fees, Regions Bank settles charges (S.D. Fla.), 1826
– Nationalization, Bernanke resists full federal takeover of banks, 341
– N.J., Lehman executives sued for pension losses (N.J. Super. Ct.), 527
– N.Y., executive compensation, banks may not intervene in action to enforce subpoena re bonuses (N.Y. Sup. Ct.), 580
– Off-balance sheet activities, FASB reaches tentative decisions on disclosure, 635; FASB working with regulators on capital implications, 991; new rules issued, 1179
– Presidential appointments, Senate hearings set for designees, 43
– Private equity, research group advocates for elimination of barriers to acquisition of banks, 1008
– Prudential supervision, new regulatory schemes likely, speaker tells conferees, 412
– Reporting requirements, enhanced footnotes on loan losses to be required by FASB, 789
– Rescue plans, Congressional Oversight Panel takes testimony about previous crises in Japan and Sweden, 493
– Risk management

– – Fundamental changes needed for viable business model, panelists tell conferees, 268
– – Washington Mutual, claims must be repleaded due to structural deficiencies (W.D. Wash.), 972

– Securitized assets, movement onto balance sheets may signal end of businesses, 1759
– Sham transactions, claims alleging complicity in Enron fraud by JPMorgan fail to plead scienter (2d Cir.), 114
– Stability of banking sector key to economic recovery, Bernanke says, 454
– Systemically significant institutions

– – Financial Stability Council

See LEGISLATION, FEDERAL, S 664

– – Group of Thirty recommends scaled regulation, 108
– – Menu of systemic risk indicators needed, Philadelphia Fed President tells conferees, 458
– – Moral hazard, shadow panel warns in “too big to fail” label, 267
– – Priorities, Dodd (D-Conn) says systemic risk should be initial regulatory focus, 201
– – Regulator, House to create, Frank (D-Mass) tells conferees, 904
– – Regulators, role and choice debated in House Financial Services panel hearing, 393; former Fed chairman objects to Treasury-led council as monitor, 1771
– – Tier 1 financial holding companies, Obama proposal would create Financial Services Oversight Council, 1389
– – UK, FSA proposes new regulations to combat effects of risk, 509

– TARP

See TROUBLED ASSET RELIEF PROGRAM (TARP)

– Trusts and estates, fiduciary breach claims against bank subject to removal under SLUSA (6th Cir.), 1943
– Undisclosed accounts, UBS settles charges it enabled tax avoidance (D.D.C.), 290
– United Kingdom

– – Liquidity reporting, FSA releases proposed requirements for comment, 770
– – Systemic risk, FSA proposes new regulations to combat effects, 509

BANKRUPTCY

– Adelphia, bar on receiving value from Rigas family vacated (2d Cir.), 344
– Audit Integrity complains to SEC re “frivolous” claims by Hertz over probability study, 1911
– Auditor, no third-party liability to lender for failure to uncover accounting irregularities (4th Cir.), 589
– Commodity forward agreements may be exempt from trustee avoidance powers (4th Cir.), 318
– Fiduciary duty claim, shareholder rights extinguished by bankruptcy (6th Cir.), 111
– Futures commission merchants, CFTC proposes new account class for customer positions, 1549
– General Motors, SEC and FINRA issue warnings not to confuse stock of old and new entities, 1362
– Madoff fraud, SEC opposes motion due to DOJ forfeiture actions (S.D.N.Y.), 652; Chapter 7 filed by customers, 702
– Ponzi scheme, bankruptcy trustee for scheme may not recover margin security from Bear Stearns (2d Cir.), 1065
– Qwest, trustees bring claims against former executives (D. Colo.), 237
– Refco, Merrill Lynch ordered to pay arbitration award to Masonic Hall for mishandled accounts, 615
– Retirement homes, SEC claims against bankrupt operator for lying to investors (D. Or.), 409
– Sentinel Mgmt. Group, bankruptcy trustee files fraud claims against auditor (Ill. Cir. Ct.), 1600
– Systemically significant financial companies, CRS report compares receivership with bankruptcy, 763
– Telecommunications IPO, single class may assert '33 and '34 Act claims (2d Cir.), 1407
– Too big to fail, nonbank institutions, House panel examines issues, 1928

BOILER ROOM OPERATIONS

– Cold-callers charged with fraudulent solicitation for investments in bogus companies (E.D.N.Y.), 1730
– Currency, scheme operator settles CFTC claims (E.D.N.Y.), 678
– Oil and gas, operator agrees to preliminary bar (N.D. Tex.), 1829
– Penny stocks, emergency order granted against unregistered broker-dealer in international scheme (N.D. Ill.), 203; relief defendants, jurisdiction found, 1358
– Stock price manipulation, managers face civil and criminal claims (S.D.N.Y.), 1313
– Video games, civil and criminal charges filed in investment scheme (S.D. Fla.), 1830

BONDS

– Argentinean bond defaults, class certified (S.D.N.Y.), 614; Argentina found in contempt of discovery orders, 1112
– College savings plan, recommendations of risky investments draw state charges (Or. Cir. Ct.), 706
– Foreign Sovereign Immunities Act satisfied by explicit waiver in bond offering (2d Cir.), 113
– Insider trading, 30-year note trader found liable for misuse of embargoed information (D. Mass.), 1202
– Insurance, demand still exists for guarantees and enhancements, Special Report, 370
– Phony reports, trader agrees to sanctions (CFTC), 279
– TRACE system, FINRA proposes expansion to cover government and GSE debt, 476; SEC clears expansion, 1819; expansion sought for asset-backed securities, 1819
– Treasury STRIPS, firm and president settle excessive markups charges with FINRA, 916

BOOKS AND RECORDS INSPECTIONS

See also RECORDKEEPING
– Beneficial ownership, suit dismissed for insufficient evidence (Del. Ch.), 1694
– FINRA, brokerage alleges misconduct and failure to oversee members (D.C. Super. Ct.), 1587
– Fla., statutory appraisal provides adequate remedy for minority shareholders in reverse split repurchase (Fla. Dist. Ct. App.), 886
– LLC member may photocopy (Del. Ch.), 1498
– Menswear investor does not demonstrate reasonable basis for claim (Del. Ch.), 427
– Semiconductors, investor files claim over retained unelected directors and rejection of acquisition (Del. Ch.), 627; request denied, 1904
– State action, investor may not use where discovery is stayed under PSLRA (Del. Ch.), 528

BRAZIL

– Hedging, ADR investor claims over speculation may proceed (S.D.N.Y.), 1580

BRIBERY

– Brokers and advisers charged in scheme to route hedge fund trades (S.D.N.Y.), 460
– Facilitated trades, promoter enters guilty plea over payment for execution of trades (S.D.N.Y.), 1254
– Foreign Corrupt Practices Act

See FOREIGN CORRUPT PRACTICES ACT (FCPA)

– Penny stock CEO paid brokers to promote stock, guilty verdict returned (S.D.N.Y.), 1311
– Pensions, Bennett (R-Utah) asks SEC to investigate links between campaign contributions and attorney representation of funds, 1302; SEC votes to propose new rule to curb pay-to-play, 1386; SEC declines request, citing lack of jurisdiction, 1399; panelists concerned rule will hurt small advisers, 1443; commenters voice opposition to ban, 1861
– Telecommunications equipment provider, dismissal of bribery claims affirmed (9th Cir.), 919

BRITISH VIRGIN ISLANDS

– Derivative action, BVI statute requiring court permission to proceed is substantive, claims dismissed (Cal. Ct. App.), 1076

BROKER-DEALERS

– Analysts

See ANALYSTS

– Annuities

– – Arbitration, investors who purchased through broker-dealers may not compel originating firm (M.D. Ala.), 13
– – Free lunch seminars, cease and desist order sought for unsuitable annuity sales to seniors (SEC), 1252
– – Suitability, Fifth Third agrees to FINRA fine over “cookie cutter” transactions, 711

– Arbitration

See ARBITRATION

– Auction rate securities

See AUCTION RATE SECURITIES (ARS)

– Auditors, registration required in new PCAOB guidance, 323; further developments, see LEGISLATION, FEDERAL, HR 1212
– Best execution, nonspecific SEC report is insufficient to support claim (2d Cir.), 408
– Breakpoint discount compliance, firms settle claims, 554
– Bribery, brokers and advisers charged in scheme to route hedge fund trades (S.D.N.Y.), 460
– Cash sweep programs, fraud claims dismissed (S.D.N.Y.), 1446
– Churning

– – NEXT Financial agrees to FINRA fines over failure to supervise, 1407
– – Unsophisticated investors, SEC claims registered representatives and firm took advantage (S.D. Fla.), 1111

– Closed-end funds, Merrill Lynch and UBS settle FINRA charges of supervisory failures, 1445
– Compensation arbitration award for firm affirmed, attorneys' fees erroneously denied (Mo. Ct.. App.), 25
– Compliance

– – CCOutreach, regional seminars announced, 464
– – Investor confidence, Schapiro calls on CCOs to help restore, 451

– Confusion with investment advisers, SEC regulation harmonization may progress, 247; Analysis and Perspective, 776
– Credit crisis, related claims jumped significantly in 2008, study says, 1204
– Custody of assets, audits and surprise examinations proposed for advisers with physical control of assets, 898; Paredes questions value of surprise exams, 1776
– Customer protection, SEC needs to rethink rules in light of Lehman collapse, Sirri tells conferees, 412
– Data breach, FINRA fines Centaurus for failure to protect customer information and misleading clients, 809
– Departing advisers, Merrill cannot prove irreparable harm, injunction denied (D. Utah), 707
– Disciplinary histories, FINRA proposes making final actions available permanently, 814
– Dual registrants, association asks SEC to tighten custody rules, 453
– Early retirement, Morgan Stanley agrees to FINRA fines for brokers who improperly persuaded clients, 571
– Enforcement process, FINRA guidance document released, 562
– Examinations, preparation is recommended for routine SEC action, 1779
– Expungement of CRD records, new arbitration procedures announced, 11
– Failure to respond to NASD requests, expulsion sustained (D.C. Cir.), 1066
– Fictitious account statements, criminal charges filed against chairman of firm, employee pleads guilty (S.D.N.Y.), 1933
– Fiduciary standard, groups send letter to Senate urging regulatory rigor, 561; investor groups call on SEC to regulate brokers as advisers, 699; Walter calls for “harmonization” of regulations covering broker-dealers and advisors, 854; Schapiro says harmonization is high on SEC agenda, 855; group predicts closer cooperation between FINRA and SEC, 971; Aguilar commends Obama for extending standard to broker-dealers, 1241; Ketchum supports harmonization of rules, 1939
– Financial holding companies, Fed will seek regulatory authority, 748
– Financial planners, FPA asks SEC to clarify FINRA authority, 1568
– FINRA may enforce fines against members under contractual and quasi-governmental authority (S.D.N.Y.), 663
– Forex counterparty settles FINRA claims, 1574
– Hedge funds, FINRA reviewing advisory businesses, 109
– High risk firms, SEC official announces nationwide sweep, 1157
– Inheritance theft, broker agrees to lifetime ban (FINRA), 1531
– Initial public offerings

See INITIAL PUBLIC OFFERINGS (IPOs)

– Inspection and examinations, delegation of SEC authority, 1054
– Inter-dealer brokers form association, Wholesale Market Brokers' Ass'n Am., 1367
– Late trading

See LATE TRADING

– Loan guarantees, official charged in scheme to help friend defraud lenders (N.D. Cal.), 564
– Madoff fraud

See MADOFF FRAUD

– Market timing

See MARKET TIMING

– Merger, Merrill Lynch targeted by civil litigation after Bank of America acquisition, 1615
– Money laundering

– – E*Trade settles FINRA claims re failure to institute policies and procedures, 86
– – Penny stocks, firms settle FINRA claims re failure to follow up on red flags, 1058

– Municipal securities, Edward D. Jones settles FINRA claims re failure to deliver timely statements, 664
– NASD/NYSE Regulation merger, former member suit over alleged falsehoods (S.D.N.Y.), 52; appeal rejecting challenge dismissed as moot, substantive issues still remain (2d Cir.), 516
– Net capital rule, Sirri defends SEC leverage oversight, 651
– Notifications, Wachovia agrees to FINRA fine over failures, 568
– Nun, broker who converted funds intended for religious order agrees to FINRA bar, 867
– Pensions, Merrill settles conflict of interest charges (SEC), 209
– Permanent bar on brokerage executive from supervisory duty upheld (D.C. Cir.), 1248
– Pleadings, vague and conclusory allegations re stock price manipulation cannot support fraud charges, claims dismissed (S.D.N.Y.), 702
– Prime brokers

– – Hedge fund fraud, charges of aiding and abetting were adequately pleaded, claims reinstated (2d Cir.), 1109
– – Refco lawyer found guilty for role in financing cover-up (S.D.N.Y.), 1364
– – Registration, IOSCO endorses risk management measures, 1197; Gensler recommends serious consideration of proposals, 1219
– – Short sales, GAO urges SEC to clarify guidance to reduce fails to deliver, 1056

– Promissory note, ex-employee seeking vacatur of award must do so within reasons provided by Federal Arbitration Act (W.D. Tex.), 661
– Public offerings, alleged misappropriation of funds by CEO (C.D. Cal.), 772
– Quadruple Witching, Citigroup settles FINRA claim for erroneous quotations and supervisory failures, 509
– Rate reductions, firm and manager settle FINRA claims of improper inter-firm communications, 1243
– Recruitment, Schapiro cautions firms about enhanced compensation, 1662
– Registration application forms, FINRA changes approved by SEC, 967
– Regulatory gaps, SEC official says Stanford fraud demonstrates need for more effective regulation, 1567
– REITs, Ameriprise settles claims of concealed revenue-sharing incentives (SEC), 1307
– Rumors, regulators examine measures to halt spread of false information, Special Report, 1170
– Sales assistant accused of stealing client funds agrees to FINRA ban, 1620
– Sanctions, Harvard study finds SEC is biased toward big firms, 347
– Securities lending

See SHORT SALES

– Self-trades, rule change increases flexibility for NYSE firms, 1955
– Short sales

See SHORT SALES

– SIPC announces net operating revenue-based fees to sustain reserves, 415
– Squawk boxes, Merrill Lynch settles charges of misuse (SEC), 455; brokers found guilty, receive jail sentences and fines (E.D.N.Y.), 753
– Stock loans

– – Improper payments to finder firms, FINRA settlement includes fines and suspensions, 1163
– – Kickbacks disguised as finders fees, executive convicted (E.D.N.Y.), 564

– Stock price manipulation

– – Delisting avoidance scheme, firm and key officers barred from industry by FINRA, 966
– – Fake press releases, broker-dealer charged (N.D. Cal.), 1942
– – Simulation of active market, trader who used multiple broker-dealers pleads guilty (S.D. Fla.), 515

– Supervisory deficiencies, five firms agree to FINRA fines over unsuitable sales, 1402
– Sweeps

– – FINRA, Ketchum announces broad regulatory reviews, 1103
– – SEC letter seeks to examine custodial arrangements and controls, 340

– Systemic risk, SEC must engage with entities to understand products and practices, official tells conferees, 261; House to create systemic risk regulator, Frank (D-Mass) tells conferees, 904
– Trading software, Goldman programmer charged with theft of proprietary code (S.D.N.Y.), 1302; group asks SEC and CFTC for investigation re possible use for market manipulation, 1303; SEC says request to investigate is under consideration, 1440
– Treasury STRIPS, firm and president settle excessive markups charges with FINRA, 916
– Undisclosed accounts, UBS settles charges it enabled tax avoidance (D.D.C.), 290
– Unregistered dealers

See REGISTRATION AND LICENSING

– Unsuitable securities, executives charged with misappropriating funds intended for safe vehicles (S.D.N.Y.), 968
– Utah may not revoke broker license after unsuccessful supervisory failure claim (Utah), 1547

BUILDING AND CONSTRUCTION

– Heating and cooling firm resolves improper revenue recognition claims (W.D. Tex.), 538
– Home builder, SEC files suit against CFO for earnings management scheme (N.D. Ga.), 1282
– Tipping, man who tipped brother re HVAC firm tender offer settles claims (S.D. Tex.), 572