Capital Markets
New Accredited Crowdfunding Platforms
The new registration exemption in connection with Rule 506 offerings and crowdfunding portals significantly expand the scope of activity that non-broker-dealer registered entities may conduct. Section 201(c) of the JOBS Act provides that in connection with securities offered and sold in compliance with Rule 506 of Regulation D certain intermediary parties will not be subject [...]
The JOBS Act Turns One-Year-Old and It’s Clear that this Ill-Conceived “IPO On-Ramp” Needs an Off-Ramp
In the wake of a sweeping financial crisis that crippled U.S. capital markets and left millions of Americans out of work, Congress passed the Jumpstart Our Business Startups Act in 2012 to revitalize the economy. Commonly known as the “JOBS Act,” the statute was intended to create jobs for Americans by improving access to public [...]
Pari Passu for The Seven Percent Too; Argentina’s Fight To Turn Veritable Claims into Legal Fiction
On February 27th the Second Circuit Court of Appeals heard oral arguments between plaintiff-appellees, hedge funds NML and Aurelius, and appellants led by the Republic of Argentina (Argentina). Argentina is joined by Bank of New York Mellon (BNY Mellon), the Exchange Bondholders Group, and Fintech Advisory. The appellant’s are challenging the November 21st ruling by [...]
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TAGS Argentina bonds, Argentina debt, Sovereign debt
POSTED IN Capital Markets, Restructuring
POSTED IN Capital Markets, Restructuring
Featured Scholarship on the Future of EU Financial Regulation
On February 11, 2013, The Fordham Corporate Law Center and the Fordham Journal of Corporate & Financial Law, in conjunction with the Max-Planck-Institute Luxembourg for International, European and Regulatory Procedural Law, held a symposium on global financial regulation. For more scholarship on the future of EU financial regulation, please see this article from the Oxford Journal of Legal [...]
Battle over Herbalife Should Raise Concerns about the Influence of Short Sellers
William Ackman is so sure that Herbalife is a fraudulent company that he is literally willing to bet a billion dollars on it, and in December 2012, that is just what he did. Herbalife, a 30 year old food retailer of weight management shakes and supplements, is estimated to be worth billions and is openly [...]
High Frequency Trading: An Overview
High frequency trading (“HFT,” and also known as low-latency trading) is the use of automated programs to execute securities orders rapidly, generally to take advantage of small market disparities. Importantly, statistics indicate that HFT currently comprises approximately 50% to 70% of United States daily equity volume. While HFT has undeniably provided important benefits for investors, [...]
CFTC’s New Powers Challenged on Multiple Fronts
The Commodity Futures Trading Commission (CFTC) has ramped up Wall Street regulatory enforcement in 2012. The CFTC released its Enforcement Division’s annual results on October 5, 2012, stating that it imposed more than $585 million in sanctions in fiscal year 2012. Only $450 million in sanctions were imposed in fiscal year 2011. This increase is [...]
The Link Between GSE Reform and QE3
On August 17th, the Treasury Department revamped its financial support of Fannie Mae and Freddie Mac. The new agreements increased the share of profits payable to the Treasury. The Treasury Department also accelerated the pace at which the mortgage-finance giants are required to wind down their mortgage portfolios and pay back the government for their [...]
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TAGS Bernanke, fannie mae, Federal Reserve Board, freddie mac, GSE, mortgage rates, QE3
POSTED IN Capital Markets, Housing, Real Estate
POSTED IN Capital Markets, Housing, Real Estate
Early Stage Company Seed Venture Funding Skyrockets, But Dark Clouds May Loom Large
New York’s economy is rapidly transitioning from one based largely on the financial services sector to one that is becoming far more heavily reliant on technology, new media, and other entrepreneurial startups. New York-area entrepreneurs have been replacing yuppie investment bankers as the heroes of the economy. In the past two years alone, venture funding [...]
Liberalizing Solicitation: Proposed Rules for Reg D and 144A under the Jobs Act
On August 29, 2012, the US Securities and Exchange Commission released another round of proposed rules pursuant to Title II of the recently passed Jumpstart Our Business Startups Act (“Jobs Act”). If adopted, the amended rules would significantly reduce prohibitions against general solicitation and general advertisement found in Regulation D under Rule 506 and Rule [...]
Featured Video
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Eugene P. and Delia S. Murphy Conference on Corporate Law
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Representation Without Accountability?
- Business Law Practitioners Series – Fall 2011
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The Philosophy and Practice of Disclosure
- BLPS – Rory Cutaia ’85
- The Looming Problems of The Bureau of Consumer Financial Protection
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Financial Reform Legislation: There Ought To Be A Law, But Is This It?
Highlights From Volume 18 Book I
THE BEHAVIORAL PARADOX: WHY INVESTOR IRRATIONALITY CALLS FOR LIGHTER AND SIMPLER FINANCIAL REGULATION
It is widely believed that behavioral economics justifies more intrusive regulation of financial markets, because people are not fully rational and need to be protected from their quirks. This Article challenges that belief. Firstly, insofar as people can be helped to make better choices, that goal can usually be achieved through light-touch regulations. Secondly, faulty [...]
DEMANDING SUBSTANCE OR FORM? THE SEC’S PLAIN ENGLISH HANDBOOK AS A BASIS FOR SECURITIES VIOLATIONS
In 1998, the United States Securities and Exchange Commission (“SEC” or “Commission”) released a style manual titled “The Plain English Handbook.” The culmination of a drive by its Chairman, Arthur Levitt, the Handbook drew upon the rules of grammar, best industry practice, and even the support of billionaire Warren Buffett in calling for a layman’s [...]
FULL OF HOT AIR? EVALUATING THE AIRGAS COURT’S RESERVATIONS ABOUT SHAREHOLDERS’ SHORT-TERM AND LONGTERM INTERESTS IN TAKEOVERS
This Note explores the incentives and preferences of shareholders in takeovers. This analysis is conducted in the context of the Delaware Chancery Court’s February 2011 decision in Air Products & Chemicals v. Airgas. In that case, the court’s decision largely turned on whether certain short-term and long-term shareholders have different preferences and incentives in takeovers. [...]
News & Events
- Can Woman Have It All? A Live Webcast with Anne-Marie Slaughter (4/24/2013)
- 13th Annual A.A. Sommer, Jr. Lecture on Corporate, Securities & Financial Law (4/18/2013)
- 13th Annual A.A. Sommer, Jr. Lecture on Corporate, Securities & Financial Law (4/18/2013)
- International In-House Counsel Breakfast Forum Series for Students (4/18/2013)
- Business Law Practitioners Series for students (4/16/2013)
- Fordham Corporate Center