Reynolds's Feed
Mar 23, 2015
via Breakingviews

Elliott emits ray of pragmatism in Argentina feud

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Elliott Management has emitted the merest glimmer of pragmatism in its feud with Argentina. The hedge fund, with a U.S. judge’s approval, will allow Citigroup to process two of the country’s bond payments, despite an earlier court-ordered block. It’s a concession to cover the bank’s back, not a broader shift in the intractable spat between holdout creditors and Argentina. But it may qualify as progress.

Mar 23, 2015
via Breakingviews

Elliott emits ray of pragmatism in Argentina feud

Photo

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Elliott Management has emitted the merest glimmer of pragmatism in its feud with Argentina. The hedge fund, with a U.S. judge’s approval, will allow Citigroup to process two of the country’s bond payments, despite an earlier court-ordered block. It’s a concession to cover the bank’s back, not a broader shift in the intractable spat between holdout creditors and Argentina. But it may qualify as progress.

Mar 11, 2015
via Breakingviews

Silicon Valley sexism case tests new M&M color

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By Reynolds Holding

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Silicon Valley’s latest sexism trial is testing a new flavor of M&M’s. Venture capitalists at Kleiner Perkins Caufield & Byers didn’t slip the button-sized chocolates down a woman’s blouse, behavior that prompted a $3.5 million judgment against a law firm’s Palo Alto office two decades ago. But they’re charged with unfairly blocking a female’s rise to the top. It’s a subtler, more toxic type of discrimination that suggests little has changed in the technology world’s ecosystem.

Mar 4, 2015

Breakingviews: Now (finally) playing: royalties for online music

By Reynolds Holding

NEW YORK (Reuters Breakingviews) – Online music is starting
to sing licensing agencies’ tune. The American Society of
Composers, Authors and Publishers says it collected over $1
billion in royalties for the first time last year and
distributed a record $883 million, much of it for songs streamed
over the internet. Even so, a system that often pays artists
less than a penny per play needs a rewrite.

A century ago, ASCAP helped its members earn money from
their work by selling blanket performance licenses and passing
along the proceeds. In 1941, trustbusters clipped its power to
set rates. But the system worked well enough for ASCAP and rival
BMI until internet streaming came along, changing how people
listen to music and prompting the two to demand higher fees.

Feb 20, 2015

Breakingviews: Trustbusters cook up simpler way to fry food deal

By Reynolds Holding

(Reuters Breakingviews) – U.S. trustbusters are cooking up a
simpler way to fry a food deal. The Federal Trade Commission
need raise only “serious” questions to thwart Sysco’s
$3.5 billion US Foods purchase in court. It’s an
unusually low hurdle that has worked before.

The fight has been bitter since the transaction was
announced in December 2013. Sysco insists enormous cost savings
would emerge from uniting the nation’s two largest food
distributors, while fierce local competition would keep prices
down. The FTC, however, says only those two companies can serve
sprawling hotel and restaurant chains, and eliminating one would
squelch national competition. Sysco offered to sell distribution
centers with nearly $5 billion in revenue, but the agency balked
at the plan and sued to stop the combination on Thursday.

Jan 30, 2015
via Breakingviews

U.S. insider trading cops risk pasting from bench

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By Reynolds Holding

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

U.S. insider trading enforcers are making enemies in high places. Their aggressive view of the law has already irked appeals judges, and the Supreme Court may be next. Justice Antonin Scalia may get his long-sought opportunity to rein in Wall Street watchdogs.

Jan 30, 2015
via Breakingviews

U.S. insider trading cops risk pasting from bench

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By Reynolds Holding

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

U.S. insider trading enforcers are making enemies in high places. Their aggressive view of the law has already irked appeals judges, and the Supreme Court may be next. Justice Antonin Scalia may get his long-sought opportunity to rein in Wall Street watchdogs.

Jan 8, 2015

Breakingviews: M&A at last finds a way for lawsuits to pay

By Reynolds Holding

NEW YORK (Reuters Breakingviews) – It turns out lawsuits can
actually add value to deals. A recent ruling against genealogy
website Ancestry.com makes it easier to sue for higher merger
prices in so-called appraisal rights cases. Unlike most M&A
claims, these ones are typically strong – and potentially a good
check on the M&A process.

Appraisal rights allow stockholders who opposed a deal to
ask a judge to set the price for their shares. In Tuesday’s
ruling on the 2012 Ancestry.com buyout, a Delaware jurist said
Merion Capital could exercise those rights, even though its
shares were technically owned by stock-certificate aggregator
Cede and the hedge fund couldn’t prove how they were voted. That
didn’t matter, the judge ruled, because Cede voted more shares
against the deal than Merion eventually owned.

Dec 30, 2014
via Breakingviews

Accounting fraud is ripe for fresh scrutiny

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By Reynolds Holding

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

Dodgy numbers will replace insider trading as Wall Street watchdogs’ preferred prey in 2015. New auditing and analytics have already given the U.S. Securities and Exchange Commission a head start, even if the 2002 Sarbanes-Oxley reforms make cases of accounting fraud harder to track down.

Dec 30, 2014

Breakingviews: Accounting fraud is ripe for fresh scrutiny

By Reynolds Holding

NEW YORK (Reuters Breakingviews) – Dodgy numbers will
replace insider trading as Wall Street watchdogs’ preferred prey
in 2015. New auditing and analytics have already given the U.S.
Securities and Exchange Commission a head start, even if the
2002 Sarbanes-Oxley reforms make cases of accounting fraud
harder to track down.

American enforcers have racked up hefty settlements and
priceless publicity pursuing the likes of SAC Capital for
trading illegally on secrets. The SEC alone filed 52 such cases
in fiscal 2014, near the 2006 high of 61.

    • About Reynolds

      "Reynolds Holding is a Breakingviews columnist who writes from New York about the law in conjunction with Reuters Legal. Before joining Breakingviews, he was a national editorial producer for the Law & Justice Unit at ABC News, a senior writer for Time magazine and the executive editor of Legal Affairs, the first general interest magazine about the law. He spent more than a decade as an investigative reporter and columnist for The San Francisco Chronicle, where he was named a Pulitzer Prize finalist for explanatory writing. Before becoming a journalist, he practiced corporate law at the New York firm of ..."
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