Financial Regulatory Forum

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…)

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.

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.

SEC examiners enter U.S. boardrooms to gauge compliance

By Guest Contributor
April 4, 2012

By Nick Paraskeva

NEW YORK, April 4 (Thomson Reuters Accelus) – The U.S. Securities and Exchange Commission plans to reach into the boardroom to assess a financial firm’s culture of compliance, a senior commission official told a conference in New York.

Corporate governance: succession planning through crises and emergency transitions

By Guest Contributor
March 23, 2012

By Alex Lee

NEW YORK, March 23 (Business Law Currents) – In an environment of increased corporate governance scrutiny, succession planning through both departures and crises is a focal point for shareholder interests and transparency-related issues. Companies historically kept succession plans close to their vests, but recent succession episodes at Apple Inc., Bank of America Corpand Hewlett-Packard have highlighted the multitude of issues that shareholders have with respect to the concern shown by boards on such a significant matter.

Corporate governance: boardrooms fret over corporate espionage and federal guidance regimes

By Guest Contributor
March 12, 2012

By Alex Lee

(Business Law Currents) – Dodd-Frank related governance issues such as say-on-pay and proxy access have been well known focal points for boardrooms during the 2012 proxy and annual meeting season, but another issue has topped headlines and is of increasing concern to boardrooms: business intelligence gathering activities. Faced with shareholder oversight, the risks posed by private intelligence gathering firms and governmental regulation in this area, companies must ensure that they abide by accepted best practices, the highest ethical standards and standards for compliance with laws.

Evidence, access aid job security when compliance staff raise a red flag

By Guest Contributor
February 9, 2012

By Emmanuel Olaoye

NEW YORK, Feb. 9 (Thomson Reuters Accelus) – Two vivid reminders of the job-security perils faced by compliance officers and others who sound alarms at company practices were provided last week by a congressional hearing into the MF Global bankruptcy and a federal appeals court ruling on whistleblower law.

Corporate boards seek a few good generals- directors’ group recruits military

By Guest Contributor
January 12, 2012

By Stuart Gittleman

NEW YORK, Jan. 12 (Thomson Reuters Accelus) — The National Association of Corporate Directors has launched a program to recruit generals and admirals for membership on boards of directors, with the aim of advancing standards of professionalism and increasing diversity of perspective, the group said Thursday.

Advice for Chelsea Clinton: How to be a good board member

By Lucy P. Marcus
September 28, 2011

By Lucy P. Marcus
The views expressed are her own.

The high profile appointment of Chelsea Clinton to the board of IAC/InterActiveCorp comes at a time when the individual and collective performance of board directors is being scrutinized more thoroughly and more publicly than ever before. A good board can be rocket fuel or it can be rocks in an organization’s pockets. But what does a  new board member need to be active, engaged, and dynamic?

Two hats or one: revisiting the role of board chair in Canada

By Guest Contributor
August 23, 2011

By John Mackie

TORONTO, Aug. 23 (Business Law Currents) For institutions, regulators and investors, executives who wear two hats, such as CEO and chairman, are in an inherent conflict of interest. The situation is complicated further when roles are shared, such as in cases of co-chairs or co-CEOs.