The massive $16-billion mortgage fraud settlement agreement just reached by Bank of America and federal authorities -- only the latest in a string of such settlements -- makes it easy to lose sight of what good shape banks are in.
from Alison Frankel:
In 2012 and 2013, when the 5th Circuit Court of Appeals was considering the question of whether Dodd-Frank's anti-retaliation provisions protect whistleblowers who report their concerns internally, rather than to the Securities and Exchange Commission, the SEC stayed out of the fray. The case, Khaled Asadi v. G.E. Energy, centered on the tension between two sections of Dodd-Frank, one of which seemed to define whistleblowers only as those who tip the SEC about potential misconduct by their employers. In its Dodd-Frank implementation process, the SEC attempted to resolve the tension, issuing rules to clarify that whistleblowers are protected from retaliation regardless of whether they report concerns to the agency or up the chain of command through internal compliance programs, as the older Sarbanes-Oxley Act had encouraged. The SEC's rules have convinced most of the federal trial judges who have considered the scope of Dodd-Frank whistleblower protections; courts have typically cited the deference due to the agency's interpretation of a law it is responsible for enforcing.
from The Great Debate UK:
--Gregg Beechey is a Partner in the Financial Institutions Group at law firm King and Wood Mallesons SJ Berwin. The opinions expressed are his own.--
from Ian Bremmer:
What will the White House screw up next? Democrats have watched as one calamity after another has befallen what was once the most promising Democratic administration since John F. Kennedy’s. Obamacare, the NSA, Syria, heck, even the administration’s campaign foibles are back in the news with the publication of the new tell-all book Double Down.
from The Great Debate:
A lot can happen in a year. This time last year, U.S. businesses and NGOs bemoaned the Obama administration's perceived indifference to Africa. Now, they’re trying to find out how to catch the wave of interest. Major new initiatives, including Power Africa and Trade Africa, unveiled during President Obama’s first true trip to Africa this summer, as well as a reinvigorated push to renew the African Growth and Opportunity Act fully two years before it's due to expire, have given U.S.-Africa watchers a lot to consider. But what -- and when -- is enough for U.S. policy in Africa? What more can be done in the year ahead? How do things really shake out for investors, civil society and Africans? Here are three additional areas the Administration should consider as it deepens its commitment to the continent:
from Alison Frankel:
In the first full year of operation for the Securities and Exchange Commission's Dodd-Frank whistle-blower program, the agency received 324 tips from whistle-blowers working outside of the United States - almost 11 percent of all the whistle-blower reports received by the SEC. If those tips eventually result in sanctions of more than $1 million, the SEC whistle-blowers will be in line for bounties. But if they're fired by their companies for disclosing corporate wrongdoing, they may not be able to sue under Dodd-Frank because the law's anti-retaliation protection for whistle-blowers does not specify that it extends overseas. And as you know, the U.S. Supreme Court's 2010 ruling in Morrison v. National Australia Bank holds that civil laws should be presumed not to apply overseas unless they say otherwise.
from Alison Frankel:
If Khaled Asadi, a former GE Energy executive who lost his job after alerting his boss to concerns that GE might have run afoul of the Foreign Corrupt Practices Act, had sued his old employer in New York or Connecticut, things might have worked out differently for him. Several federal trial judges in those jurisdictions have ruled that whistle-blowers who report corporate wrongdoing internally are protected by the Dodd-Frank Act of 2010, even though the statute defines whistle-blowers as employees who report securities violations to the Securities and Exchange Commission. But Asadi, who worked in GE Energy's office in Amman, Jordan, filed a claim that the company had illegally retaliated against him in federal district court in Houston. And on Wednesday, the 5th Circuit Court of Appeals - with hardly a nod to contrary lower-court decisions in other circuits - ruled that Asadi is not a whistle-blower under Dodd-Frank because he talked to his boss and not the SEC.
Post corrected to show Brooksley Born is a former head of the Commodity Futures Trading Commission (CFTC) not a former Fed board governor.