The American Jobs Act , recently
proposed by President Obama, contains a provision closing the co-called
"carried interest tax loophole" that benefits many investment fund
managers. Just about all hedge funds, real estate investment
In addition to filing Form ADV with the SEC when they
register with the Securities and Exchange Commission, private fund managers
will also need to start filing Form PF. I received a helpful reminder about
this last week form SEC's IARD system...
Private Equity has been siting on the fringes of
Anti-money laundering regulation for many years. It's still illegal to be
involved in money laundering and fund managers should be taking some steps to
protect themselves and to identify problems...
As a general rule, securities fraud plaintiffs benefit
from telling the whole story while defendants benefit from dividing and
conquering claims: "Well, that allegation's no big deal; there's not much
evidence for that one; I don't...
Whether the process is just winding down for the year or
the process is actually winding down for good, the bank closure rate has
recently fallen off dramatically. The FDIC has not taken over any banks for
three weeks straight, with no bank closure...
The nation's 11th largest CPA firm has been sued
for $150 million and accused of failing to detect the largest Ponzi scheme in
the history of the Pacific Northwest despite issuing clean opinion letters
following several audits of the funds from...
The Securities and Exchange Commission and federal
banking regulators have extended the comment period on the Volcker Rule
proposed regulations from January 13, 2012 to February 13, 2012. In Release No.
34-66057 , the
regulators noted that the extension...
by Dionysios S. Demetis
Over the past two decades,
Anti-Money Laundering (AML) and the Counter-Financing of Terrorism (CFT) have
undoubtedly emerged as two important contemporary themes that have generated
considerable attention. The following Emerging...
WASHINGTON, D.C. - (Mealey's) Because the Credit Repair
Organizations Act (CROA) does not specifically state whether claims brought
pursuant to the act are eligible for arbitration, the Federal Arbitration Act
(FAA) requires an arbitration agreement...
Mitt Romney puts his business background at the front of his campaign message. As the current front-runner for the Republican nomination, his background is going under increased scrutiny. Since his business background is in private equity, the industry...
The SEC has provided a no action letter in response to an
American Bar Association request on guidance for private fund managers. The ABA
requested clarification that a group of funds could use a singe registration
where the fund managers are in a...
At least one of the hedge funds being investigated for
its use of expert networks in based in Massachusetts. In an unusual instance of
the state regulators acting before Securities and Exchange Commission, the
Massachusetts securities regulators are...
With hundreds (thousands?) of private fund managers set
to register with the Securities and Exchange Commission next quarter, the new
form ADV is on the IARD system and
ready for you to start uploading information.
I noticed the first problem. ...
The demise of Taylor, Bean & Whitaker, as well as
Colonial Bank, continues to spawn guilty pleas. This time Raymond Bowman, the
former president of Taylor Bean, pleaded guilty to charges of conspiring to
commit bank, wire and securities fraud and...
LOS ANGELES - (Mealey's) Capital One Bank NA USA has
agreed to pay $10 million to resolve claims that it promoted its credit card
services as offering low fixed annual percentage rates and then later abruptly
increased them, according to a document...
Passage of the landmark Dodd-Frank Act, the most
far-reaching financial regulatory legislation since the Great Depression, has
set the stage for major adjustments in the financial services industry. In a
second Roundtable discussion, Arnold & Porter...
The Federal Financial Institutions Examination Council
(FFIEC), noting that security threats continue to mount, has supplemented its 2005
guidance on authenticating the identity of customers who access their
financial accounts online. The supplement addresses...
March continued the trend of way too many breaking news
stories in Ponzi scheme cases. Here is the summary of the stories that were
reported this month. Please feel free to post comments about these or other
Ponzi schemes that I may have missed. And...
According to the FDIC’s latest Quarterly Banking Profile ( here ), as of September 30, 2013, there were 6,891 federally insured banking institutions, down from 6,940 at the end of the second quarter and down from 7,141 as of September 30, 2012....
In the wake of the financial crisis, mortgage-related
reforms enacted as part of the Dodd-Frank Act or established under the Basel
capital process have created four different classes of residential mortgage
loans that are entitled to some kind of favorable...
On this edition, Richard Phillips of K&L Gates and Professor Meyer "Mike" Eisenberg, Visiting Professor of Law at Willamette University College of Law, discuss the March 30, 2010 decision in Jones, et al. v. Harris Associates L.P., in which...
The Consumer Financial Protection Bureau has issued a proposal
to supervise nonbank servicers of private and federal student loans who qualify
as "larger participants" in the student loan servicing market. Comments on the
proposal will be...
The hedge fund world has always walked a fine line when
it comes to attracting new investors. And nowhere has this line been
thinner than the one between "finders" and "solicitors" - the parties who
act as the middlemen in the investor...
A North Carolina federal judge issued an order approving the claims procedures proposed by the court-appointed receiver to, among other things, begin making distributions to victims of the $600 million Zeek Rewards Ponzi scheme. In an Order entered March...
NACHA's P2P rules , approved March 7 of last year, went into effect 3/21/2014 and addresses necessary changes to handle the Individual ID field, as well as the proper use of the WEB credit by Originators.
In a recent Sheshunoff Webinar , I presented...