Financial Regulatory Forum

JPMorgan, warned earlier over risk governance, highlights oversight challenges

By Guest Contributor
May 15, 2012

By Emmanuel Olaoye, Julie DiMauro and Randall Mikkelsen

NEW YORK, May 15 (Thomson Reuters Accelus) - Corporate executives and boards face big challenges monitoring risk at complex banks like JPMorgan Chase & Co, which was warned by an investor group last year that its board had “serious deficiencies” and was not up to the task.

JPMorgan repeats basic mistakes managing traders, say officials

By Guest Contributor
May 15, 2012

By Rachel Wolcott

LONDON/NEW YORK, May 15 (Thomson Reuters Accelus) – JPMorgan’s Chief Investment Office, which last week was responsible for more than $2 billion in mark-to-market losses, appears to have made some classic mistakes in the risk management of trading desks and the monitoring of traders. Although the CIO losses have not been blamed on a rogue trader, they do have much in common with the incidents at UBS and Société Générale, where single traders lost billions seemingly overnight.  (more…)

JPMorgan may tip Wall Street’s hand on ploys to beat Volcker

By Guest Contributor
May 14, 2012

By Rachel Wolcott

NEW YORK, May 14 (Thomson Reuters Accelus) - JPMorgan Chase & Co’s revelation that it had trading losses of at least $2 billion on a failed hedging strategy may have tipped the hand to one way Wall Street executives plan to get around the Volcker Rule.

Private equity: bank regulators tighten the collar on leveraged loans

By Guest Contributor
May 11, 2012
By Alex Lee

NEW YORK, May 11 (Business Law Currents) – With the leveraged finance market coming back to life, bank regulators want financial institutions to seriously tighten oversight and maintenance of their leveraged portfolios. Leveraged loans are heavily utilized by private equity shops for their transactional activities but there is an ever-increasing concern that while loan volume has gone up, underwriting practices have deteriorated to unacceptable standards.

Corporate governance watch: vote failures signal investor dissatisfaction with executive pay

By Guest Contributor
May 10, 2012
By Alex Lee

NEW YORK, May 10 (Business Law Currents) – Stockholders are making their discontent heard through say-on-pay votes that have not been flattering to executives. So far this year, multiple companies have outright failed these votes and even more have not been able to reach the 70 percent approval threshold. In light of Institutional Shareholder Services’ (ISS) 2012 Corporate Governance Policy Updates, evaluations of company pay policies are in line for even greater scrutiny.

Foreign bribery fines and settlements: who should get the money?

By Guest Contributor
May 9, 2012

By Luke Balleny

NEW YORK, May 9 (Thomson Reuters Foundation) – ‘Share and share alike,’ some parents love to tell their offspring. But when it comes to fines or settlements from foreign bribery cases, the issue of sharing is a contentious one.

Negligence charges gain clout in SEC enforcement arsenal

By Guest Contributor
May 9, 2012

By Julie DiMauro

BOSTON/NEW YORK, May 9 (Thomson Reuters Accelus) - Financial services firms may face more negligence cases brought by the U.S. Securities and Exchange Commission, reflecting a greater willingness by the commission to base charges on negligence findings, industry professionals were told at a Thomson Reuters forum.

U.S. SEC set to monitor private equity funds, official says

By Guest Contributor
May 8, 2012

By Stuart Gittleman

NEW YORK, May 8 (Thomson Reuters Accelus) - Many of the world’s top private equity funds will soon be examined by the U.S. Securities and Exchange Commission, Carlo di Florio, director of OCIE, the SEC’s Office of Compliance Inspections and Examinations, said.

U.S. compliance officers need clarity on status as ‘supervisors,’ industry professionals say

By Guest Contributor
May 8, 2012

By Stuart Gittleman

NEW YORK, May 8 (Thomson Reuters Accelus) – The U.S. Securities and Exchange Commission’s dismissal of failure-to-supervise proceedings against a broker-dealer’s general counsel did little to ease compliance officers’ concerns over their potential for acting in a supervisory capacity, according to leading industry professionals.

The U.S. JOBS Act and non-U.S. companies: changes to the offering process and compliance challenges

By Guest Contributor
May 8, 2012

By Robert Evans, Thomson Reuters Accelus contributing author

NEW YORK, May 8 (Thomson Reuters Accelus) – In April 2012, the U.S. securities laws changed significantly with the Jumpstart Our Business Startups Act, also known as the JOBS Act. The JOBS Act is deregulatory, easing some of the rules for companies seeking to access the U.S. capital markets. The offering process for SEC-registered IPOs is changing as a result and the U.S. Securities and Exchange Commission staff is working on further rule changes. Publicity restrictions will be eased for private placements and Rule 144A offerings. Offerings of up to $50 million will be exempted from registration. These changes pose interesting compliance challenges.