European Commission Proposes Financial Transactions Tax for the EU

The European Commission has proposed an EU-wide financial transactions tax similar to the financial transactions tax recently set forth in the Obama Administration's deficit reduction program. The tax would be levied on all transactions on financial instruments between financial institutions when at least one party to the transaction is located in the EU. The financial instruments in question would be products such as shares, bonds, derivatives and structured financial products. Whether transactions were carried out on organized markets or over the counter would not make any difference since in both cases they would be taxed.

The exchange of shares and bonds would be taxed at a rate of 0.1% and derivative contracts at a rate of 0.01%. The is estimated to raise approximately €57 billion every year.

The financial transaction tax is being imposed to ensure that the financial sector makes a fair contribution at a time of fiscal consolidation in the Member States. The financial sector played a role in the origins of the economic crisis, noted the Commission, and Governments and European citizens at large have borne the cost of massive taxpayer-funded bailouts to support the financial sector. Furthermore, the sector is currently under-taxed by comparison to other sectors. Financial services are, in the majority of cases, exempt from paying VAT, due to difficulties in measuring the taxable base, leading to the under-taxation of financial services.

The proposal would introduce new minimum tax rates and harmonize different existing taxes on financial transactions in the EU.. This will help to reduce competitive distortions in the single market, discourage risky trading activities and complement regulatory measures aimed at avoiding future crises. More broadly, the financial transaction tax at EU level would strengthen the EU's position to promote common rules for the introduction of such a tax at global level, notably through the G20.

Only transactions related to financial instruments would be covered by the financial transactions tax. This means that all transactions in which private households or SMEs were involved would fall out of the scope of the tax. For instance, house mortgages, bank borrowing by SMEs, or contributions to insurance contracts would not be included. Spot currency exchange transactions and the raising of capital by enterprises or public bodies, including e.g. public development banks through the issuance of bonds and shares on the primary market, would not be taxed either.

Posts by Topic 2008

Below is a list of posts on the blog organized by the relevant statute or other subject matter for 2008. Current posts are here, while posts from 2006 may be found here and posts from 2007 are here.

Accounting, Auditing and Financial Reporting

SEC Official Examines IOSCO Accounting and Auditing Initiatives
Guidance Proposed on Limiting Auditor Liability
Companies Urged to Dialogue with SEC Staff on Accounting Judgments
FASB and IASB Issue First Converged Standard: It's on M&A Accounting
PCAOB Official Sees Increased Joint Inspections with EU Audit Overseers
SEC Staff Guides on Internal Controls Reporting for Acquired Business
SEC Official Discusses Executive Compensation Disclosure
IOSCO: Tell Investors What Accounting Standards Used in Financials
SEC Allows Range of Values in Fair Value Accounting Measurements
Federal Examiner Finds Internal Control and Audit Committee Failures at Mortgage Company
Key Senator Says PCAOB Reliance on Foreign Audit Regulators Thwarts Sarbanes-Oxley
IASB Oversight Chair Vows No More IFRS Carve Outs
IAASB Revises Standard on Management Written Representations to Auditor
Treasury Study on Financial Restatements Focuses on Internal Controls
PCAOB's Gradison Endorses Move Towards Int'l Audit Standards
Int'l Banking Group Urges IASB and FASB to Replace Fair Value with Mixed Measurement Model
IASB Reaffirms Fair Value in Proposing Revision of Standard for Measuring Financial Instruments
Basel Committee Revisiting Basel II Accord in Light of Financial Crisis
Levitt Committee Proposes Major Changes to PCAOB-SEC Auditor Oversight
IAASB Nears Completion of Redrafting Project as Acceptance of Int'l Standards Grows
IOSCO to Examine Contingencies for Failure of Global Audit Firm
European Commission Proposes Options to Limit Audit Firm Liability
UK Audit Regulator Proposes Regulation of non-UK Auditors as Equivalence Looms for EU
FASB Chair Emphasizes Role of Disclosure in Fair Value Accounting
SEC Chair Cox and IASB Oversight Chair Herald Global XBRL Standard for Financial Statements
Canadian Banking Regulator Examines Fair Value Accounting from Investor Angle
IASB Chair Defends Fair Value Accounting; Says IFRS Global by 2011
Volcker Examines Fair Value Accounting, Hedge Funds, and Fed's Role
Basel Chair and ECB Chief Say Basel II Key to Securitization Reform
European Commission Working Group Sees US GAAP Equivalent to IFRS
Big Four Object to Importing Legal Rule into PCAOB Standard for Audit Engagement Review
FASB Urged to Go Slow on Revising Standards for Off Balance Sheet Vehicles
As IFRS Goes Global, IASB Members Must Be More Globally Diverse and Funding Must Be Broad-Based
SEC Advisory Committee on Improvements to Financial Reporting (Pozen Committee) Issues Final Report
Housing Bill Would Apply Sarbanes-Oxley Governance to Fannie Mae and Freddie Mac; Require SEC to Report on Fair Value Accounting
House Financial Services Committee Marks Up Securities Act of 2008
UK Regulator Guides on Agreements Limiting Auditor Liability
FSA Adopts New Disclosure Regime for Hedge Fund Derivatives Positions
Hedge Fund Industry Concerned with Working Group FAS 157 Valuation Recommendations for Fund Managers
UK Accounting Regulator Proposes Changes to Directors Going Concern Report to Reflect IFRS
Hedge Funds and Private Equity Funds Ask FASB for Exemptions from FIN 48
Global Accounting and Auditing Firms Raise Auditor Attestation Issues with SEC XBRL Proposal
SEC Supports Monitoring Group for IASB as Debate Rages on Role and Composition
IASB to Adopt Global Standard for Fair Value Accounting Converged with FASB SFAS 157
Final Report of SEC Advisory Committee on Improvements to Financial Reporting Impacts PCAOB
European Commission Adopts Equivalence Regime for non-EU Auditors; PCAOB Registants Included
IFAC Chief Says Professional Judgment Crucial to Principles-Based Global Audit Standards
Big Four Voice Strong Support for Mandatory IFRS as SEC Roundtabe Looms
Draft Bill Would Authorize SEC to Suspend FAS 157
Center for Audit Quality Pushes Treasury's Levitt Committee on Audit Profession to Limit Auditor Liability
FASB and IASB Update Agreement to Converge Accounting Standards
IMF Readies Code of Best Practices for Sovereign Wealth Funds; SEC Support Likely
PCAOB Suspends Audit Firm's Registration for Numerous Violations of Board Standards
UK Amends Audit Committee Guidance; Factors for Using Multiple Audit Networks Set Out
FASB and IASB Propose Joint Enhancements to Presentation of Financial Statements
IAASB Issues Practice Alert for Auditors on Fair Value Accounting
European Investors Consortium Says No More Carve Outs on Fair Value Accounting
Former SEC Chair Levitt Calls for Expanded Fair Value Accounting as Part of Overall Reform
SEC Urged to Overrule FASB Fair Value Accounting Interpretation
Bailout Bill Allows SEC to Suspend FAS 157 Mark-to-Market Accounting
SEC to Hold Roundtable on 21st Century Disclosure Initiative
Members of Congress Urge Suspension of Mark-to-Market Accounting
Inactive Markets, "Disorderly" Transactions Subject of SEC Advice
SEC and FASB Guide on Fair Value Accounting under FAS 157
European Commission Proposes Methods to Add to Big Four Audit Firms

Attorneys

Southern District of New York Rejects Selective Privilege Waiver
Atkins Supports Legislation to Curb Agency Abuse of Attorney-Client Privilege
House Bill Would Make Securities Litigation More Transparent
DOJ Will Revise McNulty Memo as Specter Readies Legislation on Attorney-Client Privilege

Blue Sky and State Law Matters

SEC, FINRA and NASAA Create Senior Investor Initiative
New York's State Securities "Martin Act" Used to Prosecute Mortgage Fraud
Washington First State to Propose Rules Chgs. to Accommodate SEC New Electronic Form D
Blue Sky No-Action Letter: Fin. Mgmt. Advisory Co. Permits Retired Advisers to Participate in Fee-Based Program to Consult with Former Clients
Canada Overhauls Its Dealer and Adviser Registration/Exemption Rules
Insurance Agents Who Recommend the Sale of Securities to Individuals at Financial Planning Seminars
Buys and Sells of Promissory Notes a Consequence of Downturned Real Estate Market
States Propose Adding Senior Provisions to List of Unethical Practices for Broker-Dealers, Agents, IAs and IA Reps.
NASAA Requests Comments on IA Model Rules
Delaware Supreme Court Answers Certified SEC Shareholder Proposal Questions
Delaware Supreme Court Will Answer SEC Shareholder Proxy Proposal Question
ABA State Securities Committee Requests Uniformity for State Compensatory Benefit Plan Exemptions
Vermont Adopts New Fees for Notice Filings, Securities Registrations, and Agents
9th Circuit: State Claims Against Clearing Agencies Preempted
Montana Proposes Rules on Senior Specific Certifications and Requesting a Transactional Exemption
Form D Surveys Will Not Be Submitted to SEC
State/Federal Securities Committees Submit Form D Survey to SEC
Vermont Proposes Long-Awaited 506 Offering Rule
Colorado Proposes to Adopt Electronic Form D
Form D Amendments--When to File Them
Texas Provides Guidance on Filing Electronic Form D
Federal Securities Act of 2008 Would Impact Blue Sky Law
New Jersey Adopts BD, Agent, IA and IA Rep. Changes
Kentucky Proposes Prohibition on Use of Senior Certifications, Prohibited Practices for BDs and IAs and Requirement for BDs and IAs to Approve a Change in Control
Wisconsin Adopts Emergency Prohibition Against Using Senior Certifications or Designations
9th Circuit: Bar Orders in Settled Case Were Too Broad
Missouri Implements Electronic Form D Filing Procedures
North Dakota Implements Temporary Form D For Rule 506 Offerings

Brokers and Dealers

Corp Fin Director Would Vet Foreign Companies whose Shares Sold Through Mutual Recognition
Senate Leaders Ask GAO to Review SEC Enforcement; Question Mutual Recognition
SEC Moves Forward with Mutual Recognition Framework
McCreevy Praises Clearing and Settlement Code; But Warns Last Chance for Private Solution
Key Senator Questions Mutual Recognition; While McCreevy Sees Progress
SEC Details Staff's Involvement in Bear Stearns Transaction
Canada Overhauls Its Dealer and Adviser Registration/Exemption Rules
States Propose Adding Senior Provisions to List of Unethical Practices for Broker-Dealers, Agents, IAs and IA Reps.
Treasury Official Views Fed-SEC Efforts on Consolidated Supervised Entities
FINRA Proposes Rule 5122 on Private Placements Issued by Members
SEC and Federal Reserve Board Issue Regulation R Guidance for Small Entities
Securities Regulators Must Scrutinize Mortgage Brokers
Montana Proposes Rules on Senior Specific Certifications and Requesting a Transactional Exemption
Cox Details SEC's Conditions for Mutual Recognition of Foreign Exchanges and Brokers
Auction Rate Securities Dealers Ask Treasury for Liquidity Facility under Emergency Economic Stabilization Act
New Jersey Adopts BD, Agent, IA and IA Rep. Changes
Kentucky Proposes Prohibition on Use of Senior Certifications, Prohibited Practices for BDs and IAs and Requirement for BDs and IAs to Approve a Change in Control
Hedge Fund Industry Concerned About UK Prime Brokerage in Wake of Investment Bank Collapse Wisconsin Adopts Emergency Prohibition Against Using Senior Certifications or Designations
Bank of America, RBC Settle Auction Rate Securities Claims

Commodities and Derivatives

Senate Colloquy Clarifies CFTC-FERC Jurisdiction in Reauthorization Bill
Feinstein Amendment to Farm Bill Would Close Enron Loophole
Treasury Proposes Massive Overhaul of US Financial Services Regulation Affecting Fed, SEC, CFTC
Senate Bill Would Close Foreign Energy Commodites Trading Loophole
Former CFTC Official Says the Way Enron Loophole Closed Will Lead to Regulatory Arbitrage
With Enron Loophole Closed; Senate Looks to International Markets
Veto-Proof Farm Bill Terminates Enron Loophole and Reforms Electronic Energy Markets
Provisions in Farm Bill Would Close Enron Loophole
House Bill Closes London and Swaps Loopholes and Empowers CFTC
Congress Moving to Close the London Loophole Left Open by Farm Bill
Obama Calls for Closing Part of Enron Loophole Left Open by Farm Bill
House Passes Bill Directing CFTC to End Speculation in Energy Futures Markets
Global Financial Firms Propose Recommendations in Light of Securitization Crisis
UK Rejects Fannie Mae-Freddie Mac Model for Mortgage-Backed Securities Market
IRS Revenue Ruling 2008-31 Says Property Derivatives Contract on US Real Property Index Not Interest in Real Property Under Tax Code
SEC-CFTC Task Force Finds Speculation Did Not Contribute to Higher Energy Prices
Hong Kong Markets Largely Unaffected by Securitization Turmoil
SEC Report Finds Deficiencies in Credit Ratings of Mortgage-Backed Securities
Treasury Official Says Private Sector Will Play Large Role in Reforming Securitization
European Central Bank Officials Set Key Principles for Reforming Securitization
FSA Adopts New Disclosure Regime for Hedge Fund Derivatives Positions
Banking and Securities Associations to Develop Securitization Disclosure Guidelines
Japan Financial Services Agency Firmly Responds to Subprime and Securitization Crisis
Senate Readying Legislation on Offshore Entities and Unrealized Business Income Tax, Energy Commodities Speculation
Corrigan Counterparty Risk Management Policy Group Issues Report on Reforming Global Markets; Examines Role of SEC Reg. AB
Australian Securities Commission Says Securitization Reform Must Be Global
UK Central Banker Says Transparency is Key to Securitization Reform
Bill Would Give Treasury Unparalled Authority to Purchase up to $700 Billion in Mortgage-Backed Securities
Dodd Bill Gives SEC Oversight Role in Federal Purchases of Mortgage-Backed Securities; Addresses Executive Compensation
New FSA Chair Says Securitization Here to Stay but Must Return to Its Roots
Congress Heeds SEC's Call for Regulation of Credit Default Swaps
Probable Treasury Pick Called for Reform of Securitization Earlier This Year

Corporate Disclosures

SEC Guides on Use of Corporate Blogs; Entanglement and Adoption Liability Possible
SEC Guidance: Company Internet Websites Can be Used to Comply with Regulation FD
Grundfest and Beller Propose On-Line Questionnaire Driven Disclosure Regime as Part of SEC's 21st Century Disclosure Initiative
SEC to Hold Roundtable on 21st Century Disclosure Initiative

Corporate Governance

SEC Corp Fin Director Examines Executive Compensation and Shareholder Access
Spring-Loading and Bullet-Dodging of Stock Options Should Have Been Disclosed
Corporate Officers Also Have Fiduciary Duties under Caremark
Vice-Chancellor Strine Distinguishes Rulings Involving Delay of Shareholder Vote
Decision to Reject Merger and Deregister with SEC Protected by Business Judgment Rule
If Elected, Obama Would Make Say on Pay Legislation a Priority
Canadian Appeals Court Extends Revlon Doctrine to Bondholders
Clinton Bill Would Require Shareholder Advisory Vote on Executive Pay
Failure to Disclose Receipt of Wells Notice Does Not Support Demand Futility
Directors Owe No Fiduciary Duty to Warrant Holders, But They Deserve Truthful Answers
Canadian Supreme Court Reverses Extending Revlon Doctrine to Bondholders
SEC Commissioner Troy Paredes on Shareholder Access and Business Judgment Rule
Target Company Passes Revlon Test But Fails to Disclose Interests of Financial Adviser
Housing Bill Would Apply Sarbanes-Oxley Governance to Fannie Mae and Freddie Mac; Require SEC to Report on Fair Value Accounting
Senate Version of Bill Reforming Fannie Mae and Freddie Mac Drops Sarbanes-Oxley Corporate Governance Provisions; Adds SEC Chair to Oversight Board
Delaware Supreme Court Answers Certified SEC Shareholder Proposal Questions
Delaware Supreme Court Will Answer SEC Shareholder Proxy Proposal Question
Society of Corporate Secretaries and Governance Professionals Comment on SEC XBRL Proposal
NYSE and Nasdaq Conform Director Independence Standards to SEC Regulation S-K
Emergency Economic Stabilization Act Bonus Forfeiture Provision Differs from Similar Sarbanes-Oxley Provision
Compensation Committee Given Duties under TARP Regime set up by Emergency Economic Stabilization Act
UK Amends Audit Committee Guidance; Factors for Using Multiple Audit Networks Set Out

Enforcement

Cross-Border Insider Trading Action Shows SEC Commitment to Protect Global Markets
Atkins Supports Legislation to Curb Agency Abuse of Attorney-Client Privilege
Senate Leaders Ask GAO to Review SEC Enforcement; Question Mutual Recognition
Claimed Government Misconduct Not a Bar to Prosecution
SEC Has Int'l Enforcement Ability Regarding Sovereign Wealth Funds
House Financial Services Committee Marks Up Securities Act of 2008
House Passes Securities Act of 2008 Enhancing SEC Enforcement Powers
Bank of America, RBC Settle Auction Rate Securities Claims

Exchanges

Corp Fin Director Would Vet Foreign Companies whose Shares Sold Through Mutual Recognition
Senate Leaders Ask GAO to Review SEC Enforcement; Question Mutual Recognition
SEC Moves Forward with Mutual Recognition Framework
McCreevy Praises Clearing and Settlement Code; But Warns Last Chance for Private Solution
Key Senator Questions Mutual Recognition; While McCreevy Sees Progress
Senate Bill Would Close Foreign Energy Commodites Trading Loophole
NYSE and Nasdaq Conform Director Independence Standards to SEC Regulation S-K
SEC Approves BATS Exchange Conditioned on FINRA Performing Regulatory Duties
Cox Details SEC's Conditions for Mutual Recognition of Foreign Exchanges and Brokers
SEC Approves Nasdaq Request to List SPAC Securities
In Light of Market Turmoil, Nasdaq Would Suspend Closing Bid Deficiency Test

Executive Compensation

SEC Official Discusses Executive Compensation Disclosure
SEC Corp Fin Director Examines Executive Compensation and Shareholder Access
IRS Letter Ruling Impacts Executive Compensation Disclosure
Spring-Loading and Bullet-Dodging of Stock Options Should Have Been Disclosed
If Elected, Obama Would Make Say on Pay Legislation a Priority
Clinton Bill Would Require Shareholder Advisory Vote on Executive Pay
Society of Corporate Secretaries and Governance Professionals Comment on SEC XBRL Proposal
Dodd Bill Gives SEC Oversight Role in Federal Purchases of Mortgage-Backed Securities; Addresses Executive Compensation
Emergency Economic Stabilization Act Bonus Forfeiture Provision Differs from Similar Sarbanes-Oxley Provision
Compensation Committee Given Duties under TARP Regime set up by Emergency Economic Stabilization Act
UK FSA Sets Best Practices for Executive Compensation at Financial Firms
Bailout Bill Curtails 162(m) Executive Compensation Deductibility for Troubled Entities
Bailout Bill Gives SEC Oversight Role; Uses SEC Executive Compensation Rules

Financial Services and Banking

Basel II Helps Japanese Banks Manage Risks of Securitization
Euro Central Bank Chief Urges More Disclosure on Securitization
FSA Chair Seeks Global Standards on Managing Liquidity Risk
Chairman Cox Details SEC's Sub-Prime Agenda for 2008
New York's State Securities "Martin Act" Used to Prosecute Mortgage Fraud
EU Leaders Look at Credit Rating Agencies; Praise Hedge Fund Working Group
Treasury Proposes Massive Overhaul of US Financial Services Regulation Affecting Fed, SEC, CFTC
Federal Examiner Finds Internal Control and Audit Committee Failures at Mortgage Company
Treasury Official Sees Reform of Credit Rating Process and Enhanced Disclosure
Fed Gov. Kroszner Gleans Lessons from Risk Management Report
Cox Praises Basel Committee Plan to Update Guidance on Liquidity Risk Management
McCreevy Urges Reform of Level 3 of Lamfalussy Process
Rep. Frank Calls for Financial Services Risk Regulator
SEC Details Staff's Involvement in Bear Stearns Transaction
Basel Committee Revisiting Basel II Accord in Light of Financial Crisis
President's Working Group Proposes Major Reforms to US Financial Regulation
NY Fed President Calls for Broad Reform of Securitization Process
Fed Must Be Given Powers as Market Stability Regulator Says Treasury Chief
Basel Committee Proposes Updated Guidance on Managing Liquidity Risk
European Commission Will Regulate Credit Rating Agencies
Buys and Sells of Promissory Notes a Consequence of Downturned Real Estate Market
Geithner Seeks Fed-Centric Unified Regulation of Global Commercial and Investment Banks
BIS Chief Outlines Plan to Reform Securitization Process
Fed Chair Details Regulatory Response to Risk Management Failures
Volcker Says Regulate Investment Banks Like Commercial Banks in Light of Subprime Crisis
Canadian Banking Regulator Examines Fair Value Accounting from Investor Angle
Basel Chair and ECB Chief Say Basel II Key to Securitization Reform
Treasury Blueprint Envisions Fed as Macro-Prudential Regulator for Financial Firms
Treasury Official Views Fed-SEC Efforts on Consolidated Supervised Entities
Intertwining of Bank and Securities Activities Strains Risk Management Says Fed Vice Chair Kohn FSA Director Says Due Diligence and Risk Management Key to Reform of Securitization
SEC Official Defends Regulation of Investment Banks; But Says Legislation Needed
Fed Must Be Given Powers as Market Stability Regulator Says Treasury Chief
Fed Must Be Given Powers as Market Stability Regulator Says Treasury Chief
Basel Committee Proposes Updated Guidance on Managing Liquidity Risk
European Central Bank Official Predicts Single Securities Settlement Regime
Global Financial Firms Propose Recommendations in Light of Securitization Crisis
UK Rejects Fannie Mae-Freddie Mac Model for Mortgage-Backed Securities Market
Housing Bill Gives SEC Role in Oversight of Fannie Mae and Freddie Mac
Congress Overhauls Regulatory Regime for Fannie Mae and Freddie Mac; SEC Has Role
European Commission Will Propose Regulation of Credit Rating Agencies in October
Hong Kong Markets Largely Unaffected by Securitization Turmoil
Senate Version of Bill Reforming Fannie Mae and Freddie Mac Drops Sarbanes-Oxley Corporate Governance Provisions; Adds SEC Chair to Oversight Board
SEC Issues Emergency Order to Stop Naked Short Selling
Housing Bill Would Apply Sarbanes-Oxley Governance to Fannie Mae and Freddie Mac; Require SEC to Report on Fair Value Accounting
Bernanke Asks Congress to Reform SEC's Consolidated Supervised Entity Regime for Investment Banks
Key Senators Assert Oversight of SEC-FED MOU on Investment Banks
SEC Report Finds Deficiencies in Credit Ratings of Mortgage-Backed Securities
SEC-FED MOU Charts Cooperative Regulation of Investment Banks
Treasury Official Says Private Sector Will Play Large Role in Reforming Securitization
European Central Bank Officials Set Key Principles for Reforming Securitization
Banking and Securities Associations to Develop Securitization Disclosure Guidelines
SEC and Federal Reserve Board Issue Regulation R Guidance for Small Entities
Fed Chair Seeks Legislation on Macro Prudential Regulation of Systemic Risk to Financial System Securities Regulators Must Scrutinize Mortgage Brokers
Japan Financial Services Agency Firmly Responds to Subprime and Securitization Crisis
Australian Securities Commission Says Securitization Reform Must Be Global
UK Central Banker Says Transparency is Key to Securitization Reform
Bailout Bill Mandates Report to Congress on Reforming Financial Regulation
Bailout Bill Gives SEC Oversight Role Amidst Extraordinary Power for Treasury
Bailout Bill Falters in House
The Bailout Plan: Will it Work?
Bill Would Give Treasury Unparalled Authority to Purchase up to $700 Billion in Mortgage-Backed Securities
SEC Issues Emergency Order to Halt Short Selling in Stocks of Financial Institutions and Require Hedge Fund Managers to Report Short Positions
SEC's Consolidated Supervised Entities Program Ended
Regime Change?
Dodd Bill Gives SEC Oversight Role in Federal Purchases of Mortgage-Backed Securities; Addresses Executive Compensation
SEC Amends Orders Halting Short Selling in Stocks of Financial Institutions and Requiring Hedge Funds to Report Short Positions
Kansas City Fed President Urges Caution in Federal Reserve Board Being Financial Stability Regulator of Investment Banks
Emergency Economic Stabilization Act Bonus Forfeiture Provision Differs from Similar Sarbanes-Oxley Provision
Compensation Committee Given Duties under TARP Regime set up by Emergency Economic Stabilization Act
UK FSA Sets Best Practices for Executive Compensation at Financial Firms
Fed Gov Kroszner Says Survival of Financial Institutions Hinges on Strategic Risk Management
UK and Australia Extend Bans on Short Selling
Corporate Finance in Crisis Mode: How the Federal Reserve is Providing Funding to Financial Firms
New FSA Chair Says Securitization Here to Stay but Must Return to Its Roots
Bank of America, RBC Settle Auction Rate Securities Claims
Bailout Bill Gives SEC Oversight Role; Uses SEC Executive Compensation Rules
Former SEC Chair Levitt Calls for Expanded Fair Value Accounting as Part of Overall Reform
SEC Urged to Overrule FASB Fair Value Accounting Interpretation
Congress Heeds SEC's Call for Regulation of Credit Default Swaps
UK Legislation Would Set Up Special Resolution Regime for Failing Financial Institutions; FSA Has Central Role
House Passes Rescue Bill Despite Some Misgivings
House Passes Bailout Bill
Commission Extends Temporary Orders
Bailout Bill in Senate Retains House Securities Law Provisions
House Voices Concerns After Defeat of Financial Rescue Bill
Senate to Consider Financial Bill Tonight, DeFazio Proposes Alternative
Probable Treasury Pick Called for Reform of Securitization Earlier This Year
President-Elect Obama Details Key Principles to Guide Federal Financial Regulation Reform
G20 Sets Forth Goal of Massive Global Reform of Financial Regulation

Fraud

Supreme Court Rejects Scheme Liability Theory Under Rule 10b-5
SEC Claim Against Hedge Fund Manager for Illegal PIPES Transactions Fails
Tellabs: Different Standard, Same Result
Panelists Consider Stonebridge, Tellabs Cases
SEC, FINRA and NASAA Create Senior Investor Initiative
Cross-Border Insider Trading Action Shows SEC Commitment to Protect Global Markets
Fraud Claims Revived Under Tellabs Analysis: 1st Circuit
3rd Circuit: SLUSA No Bar to Aiding and Abetting,Foreign Claims by Trust
House Bill Would Make Securities Litigation More Transparent
Claim Fails, But Court Says Individual Scienter Not Necessary
Justice Douglas Presages Enron and Doing the Minimum
SEC Guides on Use of Corporate Blogs; Entanglement and Adoption Liability Possible
Eighth Circuit Affirms Dismissal After Tellabs Review
Key Senators Dismayed by DOL's Narrow Application of Sarbanes-Oxley Corporate Whistleblower Provision
9th Circuit Discusses Tellabs Standard
3rd Circuit Panel Reinstitutes Vioxx Action Against Merck
2nd Circuit: Basic Presumption Could be Available in Suit Against Research Analysts
Sixth Circuit's "Most Plausible" Standard Did Not Survive Tellabs
"Stormy" Weather? The 2nd Circuit Didn't "Notice"

Hedge Funds

SEC Claim Against Hedge Fund Manager for Illegal PIPES Transactions Fails
UK Hedge Fund Working Group Sets Standands for Fund Managers
Rep. Baker to Lead Hedge Fund Association
House Bill Would Mandate Study of Tax Treatment of Hedge Funds
EU Leaders Look at Credit Rating Agencies; Praise Hedge Fund Working Group
Senate Finance Committee Will Study the Taxation of Sovereign Wealth Funds
President's Working Group Committees Issue Best Practices for Hedge Fund Managers and Investors
Investment Firm Entitled to Rule 16b-3(d) Director Exemption
SEC Commissioner Designate Paredes Charts Middle Course for Hedge Fund Regulation
Volcker Examines Fair Value Accounting, Hedge Funds, and Fed's Role
Conference Board Proposes Best Practices on Hedge Fund Activism
SEC Has Int'l Enforcement Ability Regarding Sovereign Wealth Funds
Hedge Fund Standards Board Charts Path to Int'l Best Practices
Hedge Fund Groups File Amicus Briefs in Federal Court Appeal of 13(d) Case
US Treasury Will Move on Blueprint Affecting Hedge Funds
House AMT Fix Would End Capital Gains Treatment of Hedge Fund Managers' Carried Interest
Hedge Fund Group Opposes Deferred Compensation Provisions in Energy and Tax Extenders Bill FSA Adopts New Disclosure Regime for Hedge Fund Derivatives Positions
Hedge Fund Industry Concerned with Working Group FAS 157 Valuation Recommendations for Fund Managers
Hedge Funds and Private Equity Funds Ask FASB for Exemptions from FIN 48
Tax Bills Opposed by Hedge Fund Industry Do Not Advance as Congress Recesses
SEC Issues Emergency Order to Halt Short Selling in Stocks of Financial Institutions and Require Hedge Fund Managers to Report Short Positions
SEC Amends Orders Halting Short Selling in Stocks of Financial Institutions and Requiring Hedge Funds to Report Short Positions
Senate Report Finds Financial Institutions Used Swap Transactions to Help Offshore Hedge Funds Avoid Taxation of Stock Dividends
SEC Will Require Disclosure of Hedge Fund Short Positions
IMF Readies Code of Best Practices for Sovereign Wealth Funds; SEC Support Likely
House Leaders Demand Hedge Funds Drop Opposition to Foreclosure Prevention
FSA CEO Examines Hedge Fund Valuations and Transparency
Hedge Fund Industry Concerned About UK Prime Brokerage in Wake of Investment Bank Collapse Code of Principles Adopted for Sovereign Wealth Funds
SEC Requires Disclosure of Hedge Fund and Other Institutional Investors Short Positions into 2009
Senator Will Reintroduce in 111th Congress Bill Requiring SEC Registration of Hedge Fund Advisers

Insider Trading

Cross-Border Insider Trading Action Shows SEC Commitment to Protect Global Markets
Investment Firm Entitled to Rule 16b-3(d) Director Exemption
Hong Kong Records First Conviction for Insider Trading
3rd Circuit Changes Course, Finds Reclassification Exempt from Section 16(b)

Internal Controls

SEC Staff Guides on Internal Controls Reporting for Acquired Business
Lagarde Report Emphasizes Enhanced Internal Controls Federal Examiner Finds Internal Control and Audit Committee Failures at Mortgage Company
Treasury Study on Financial Restatements Focuses on Internal Controls
COSO Proposes Guidance on Monitoring Internal Controls Over Financial Reporting

International Issues

Basel II Helps Japanese Banks Manage Risks of Securitization
SEC Official Examines IOSCO Accounting and Auditing Initiatives
Guidance Proposed on Limiting Auditor Liability
Euro Central Bank Chief Urges More Disclosure on Securitization
FASB and IASB Issue First Converged Standard: It's on M&A Accounting
PCAOB Official Sees Increased Joint Inspections with EU Audit Overseers
Corp Fin Director Would Vet Foreign Companies whose Shares Sold Through Mutual Recognition
UK Hedge Fund Working Group Sets Standands for Fund Managers
FSA Chair Seeks Global Standards on Managing Liquidity Risk
Federal Court Rules Sarbanes-Oxley Whistleblower Statute Applies Outside US
IOSCO: Tell Investors What Accounting Standards Used in Financials
Cross-Border Insider Trading Action Shows SEC Commitment to Protect Global Markets
Lagarde Report Emphasizes Enhanced Internal Controls
EU Leaders Look at Credit Rating Agencies; Praise Hedge Fund Working Group
Senate Leaders Ask GAO to Review SEC Enforcement; Question Mutual Recognition
Treasury Official Sees Reform of Credit Rating Process and Enhanced Disclosure
ICI Mutual Funds Seminar Raises issue of International Regulation
SEC Moves Forward with Mutual Recognition Framework
Cox Praises Basel Committee Plan to Update Guidance on Liquidity Risk Management
Japanese Securities Regulator to Allow More English Language Filings
Key Senator Says PCAOB Reliance on Foreign Audit Regulators Thwarts Sarbanes-Oxley
Senate Finance Committee Will Study the Taxation of Sovereign Wealth Funds
McCreevy Praises Clearing and Settlement Code; But Warns Last Chance for Private Solution
IASB Oversight Chair Vows No More IFRS Carve OutsIAASB Revises Standard on Management Written Representations to Auditor
PCAOB's Gradison Endorses Move Towards Int'l Audit Standards
Banking Group Urges IASB and FASB to Replace Fair Value with Mixed Measurement Model
Key Senator Questions Mutual Recognition; While McCreevy Sees Progress
IASB Reaffirms Fair Value in Proposing Revision of Standard for Measuring Financial Instruments
Canada Moving Towards One Securities Regulator
Basel Committee Revisiting Basel II Accord in Light of Financial Crisis
Canada Overhauls Its Dealer and Adviser Registration/Exemption Rules
Basel Committee Proposes Updated Guidance on Managing Liquidity Risk
European Commission Will Regulate Credit Rating Agencies
European Commission Will Regulate Credit Rating Agencies
IAASB Nears Completion of Redrafting Project as Acceptance of Int'l Standards Grows
IOSCO to Examine Contingencies for Failure of Global Audit Firm
European Commission Proposes Options to Limit Audit Firm Liability
BIS Chief Outlines Plan to Reform Securitization Process
Geither Report Urges Enhanced Risk Management in Cross-Border Clearance and Settlement
Senate Bill Would Close Foreign Energy Commodites Trading Loophole
UK Audit Regulator Proposes Regulation of non-UK Auditors as Equivalence Looms for EU
Canadian Appeals Court Extends Revlon Doctrine to Bondholders
With Enron Loophole Closed; Senate Looks to International Markets
SEC Proposes Major Revision to Cross-Border Exemption Rules
SEC Chair Cox and IASB Oversight Chair Herald Global XBRL Standard for Financial Statements
Canadian Banking Regulator Examines Fair Value Accounting from Investor Angle
IASB Chair Defends Fair Value Accounting; Says IFRS Global by 2011
Basel Chair and ECB Chief Say Basel II Key to Securitization Reform
European Commission Working Group Sees US GAAP Equivalent to IFRS
FSA Director Says Due Diligence and Risk Management Key to Reform of Securitization
SEC Has Int'l Enforcement Ability Regarding Sovereign Wealth Funds
Basel Committee Proposes Updated Guidance on Managing Liquidity Risk
Hedge Fund Standards Board Charts Path to Int'l Best Practices
European Central Bank Official Predicts Single Securities Settlement Regime
FSA Requires Enhanced Disclosure of Short Positions
Global Financial Firms Propose Recommendations in Light of Securitization Crisis
UK Will Reform Taxation of Asset Managers
UK Rejects Fannie Mae-Freddie Mac Model for Mortgage-Backed Securities Market
European Commission Will Propose Regulation of Credit Rating Agencies in October
Hong Kong Markets Largely Unaffected by Securitization Turmoil
As IFRS Goes Global, IASB Members Must Be More Globally Diverse and Funding Must Be Broad-Based
Hong Kong Records First Conviction for Insider Trading
Senate Report Finds Banks Used Offshore Securities Accounts as Tax Havens to Evade US Tax Law
UK Regulator Guides on Agreements Limiting Auditor Liability
European Central Bank Officials Set Key Principles for Reforming Securitization
FSA Adopts New Disclosure Regime for Hedge Fund Derivatives Positions
Banking and Securities Associations to Develop Securitization Disclosure Guidelines
UK Accouting Regulator Proposes Changes to Directors Going Concern Report to Reflect IFRS
Cox Details SEC's Conditions for Mutual Recognition of Foreign Exchanges and Brokers
Japan Financial Services Agency Firmly Responds to Subprime and Securitization Crisis
SEC Supports Monitoring Group for IASB as Debate Rages on Role and Composition
IASB to Adopt Global Standard for Fair Value Accounting Converged with FASB SFAS 157
European Commission Adopts Equivalence Regime for non-EU Auditors; PCAOB Registants Included
IFAC Chief Says Professional Judgment Crucial to Principles-Based Global Audit Standards
Australian Securities Commission Says Securitization Reform Must Be Global
UK Central Banker Says Transparency is Key to Securitization Reform
Big Four Voice Strong Support for Mandatory IFRS as SEC Roundtabe Looms
FASB and IASB Update Agreement to Converge Accounting Standards
Global Securities Regulators Follow SEC Lead and Ban Short Selling to Prevent Regulatory Arbitrage
IMF Readies Code of Best Practices for Sovereign Wealth Funds; SEC Support Likely
UK FSA Sets Best Practices for Executive Compensation at Financial Firms
UK Amends Audit Committee Guidance; Factors for Using Multiple Audit Networks Set Out
IAASB Issues Practice Alert for Auditors on Fair Value Accounting
FASB and IASB Propose Joint Enhancements to Presentation of Financial Statements
FSA CEO Examines Hedge Fund Valuations and Transparency
UK and Australia Extend Bans on Short Selling
Code of Principles Adopted for Sovereign Wealth Funds
New FSA Chair Says Securitization Here to Stay but Must Return to Its Roots
Reform of Financial Regulation May Be Global but the Past Offers Solace
European Investors Consortium Says No More Carve Outs on Fair Value Accounting
Federal Reserve Board Staff Reviews Data on Foreign Private Issuer Deregistration under SEC Rule 12h-6
UK Legislation Would Set Up Special Resolution Regime for Failing Financial Institutions; FSA Has Central Role
European Commission Proposes Methods to Add to Big Four Audit Firms
G20 Sets Forth Goal of Massive Global Reform of Financial Regulation

Investment Advisers

Maine’s Take on Investment Adviser Hedge Clauses and Assets Under Management
SEC Official Reaffirms Mutual Fund Advisory Contract Approval Process
UK Hedge Fund Working Group Sets Standands for Fund Managers
US Supreme Court Rules Trust Investment Advisory Fees Not Fully Tax Deductible
Canada Overhauls Its Dealer and Adviser Registration/Exemption Rules
Insurance Agents Who Recommend the Sale of Securities to Individuals at Financial Planning Seminars
States Propose Adding Senior Provisions to List of Unethical Practices for Broker-Dealers, Agents, IAs and IA Reps.
Treasury Official Views Fed-SEC Efforts on Consolidated Supervised Entities
ABA Securities Committees Comment on SEC Form ADV Amendments
SEC Plans Historic and Profound Changes to Form ADV
UK Will Reform Taxation of Asset Managers
NASAA Requests Comments on IA Model Rules
Hedge Fund Industry Concerned with Working Group FAS 157 Valuation Recommendations for Fund Managers
New Jersey Adopts BD, Agent, IA and IA Rep. Changes
Kentucky Proposes Prohibition on Use of Senior Certifications, Prohibited Practices for BDs and IAs and Requirement for BDs and IAs to Approve a Change in Control
Wisconsin Emergency Adopts Prohibition Against Using Senior Certifications or Designations
Senator Will Reintroduce in 111th Congress Bill Requiring SEC Registration of Hedge Fund Advisers

Investment Companies

SEC Official Reaffirms Mutual Fund Advisory Contract Approval Process
ICI Mutual Funds Seminar Raises issue of International Regulation
Investment Firm Entitled to Rule 16b-3(d) Director Exemption
IRS Revenue Ruling Says Fund of Funds' Management Fees Are Not Deductible as Business Expenses
IRS Notice 2008-81 Says Treasury Program to Support Money Market Funds Does Not Run Afoul of Federal Guarantee of Tax Exempt Bonds under IRC
Strong Opposition Voiced on SEC Proposal to Drop Ratings Requirement from Rule 2a-7 on Money Market Funds
Revenue Ruling 2008-45 Says Company Cannot Transfer Frozen Defined Benefit Pension Plan to Independent Investment Firm
IMF Readies Code of Best Practices for Sovereign Wealth Funds; SEC Support Likely
Code of Principles Adopted for Sovereign Wealth Funds
Fund Disclosure, Money Market Redemption Rules Adopted

Legislative and Political Matters

Senate Colloquy Clarifies CFTC-FERC Jurisdiction in Reauthorization Bill
Atkins Supports Legislation to Curb Agency Abuse of Attorney-Client Privilege
Treasury Proposes Massive Overhaul of US Financial Services Regulation Affecting Fed, SEC, CFTC
Key Senator Says PCAOB Reliance on Foreign Audit Regulators Thwarts Sarbanes-Oxley
Senate Finance Committee Will Study the Taxation of Sovereign Wealth Funds
Rep. Frank Calls for Financial Services Risk Regulator
House Bill Would Make Securities Litigation More Transparent
If Elected, Obama Would Make Say on Pay Legislation a Priority
Senate Bill Would Close Foreign Energy Commodites Trading Loophole
Former CFTC Official Says the Way Enron Loophole Closed Will Lead to Regulatory Arbitrage
With Enron Loophole Closed; Senate Looks to International Markets
Veto-Proof Farm Bill Terminates Enron Loophole and Reforms Electronic Energy Markets
Three Former SEC Chairs Endorse Obama Presidential Bid
Clinton Bill Would Require Shareholder Advisory Vote on Executive Pay
Provisions in Farm Bill Would Close Enron Loophole
House Bill Closes London and Swaps Loopholes and Empowers CFTC
Congress Moving to Close the London Loophole Left Open by Farm Bill
Obama Calls for Closing Part of Enron Loophole Left Open by Farm Bill
House Passes Bill Directing CFTC to End Speculation in Energy Futures Markets
Housing Bill Gives SEC Role in Oversight of Fannie Mae and Freddie Mac
Congress Overhauls Regulatory Regime for Fannie Mae and Freddie Mac; SEC Has Role
Senate Version of Bill Reforming Fannie Mae and Freddie Mac Drops Sarbanes-Oxley Corporate Governance Provisions; Adds SEC Chair to Oversight Board
Senate Report Finds Banks Used Offshore Securities Accounts as Tax Havens to Evade US Tax Law
DOJ Will Revise McNulty Memo as Specter Readies Legislation on Attorney-Client Privilege
Bernanke Asks Congress to Reform SEC's Consolidated Supervised Entity Regime for Investment Banks
House Financial Services Committee Marks Up Securities Act of 2008
Key Senators Assert Oversight of SEC-FED MOU on Investment Banks
House AMT Fix Would End Capital Gains Treatment of Hedge Fund Managers' Carried Interest
Hedge Fund Group Opposes Deferred Compensation Provisions in Energy and Tax Extenders Bill Congress Wants the SEC to Reinstate the Uptick Rule
Senate Readying Legislation on Offshore Entities and Unrealized Business Income Tax, Energy Commodities Speculation
Tax Bills Opposed by Hedge Fund Industry Do Not Advance as Congress Recesses
Bailout Bill Mandates Report to Congress on Reforming Financial Regulation
Bailout Bill Gives SEC Oversight Role Amidst Extraordinary Power for Treasury
Bailout Bill Falters in House
The Bailout Plan: Will it Work?
Draft Bill Would Authorize SEC to Suspend FAS 157
Bill Would Give Treasury Unparalled Authority to Purchase up to $700 Billion in Mortgage-Backed Securities
Regime Change?
Dodd Bill Gives SEC Oversight Role in Federal Purchases of Mortgage-Backed Securities; Addresses Executive Compensation
Senate Report Finds Financial Institutions Used Swap Transactions to Help Offshore Hedge Funds Avoid Taxation of Stock Dividends
Key Senators Dismayed by DOL's Narrow Application of Sarbanes-Oxley Corporate Whistleblower Provision
Federal Securities Act of 2008 Would Impact Blue Sky Law
House Passes Securities Act of 2008 Enhancing SEC Enforcement Powers
House Leaders Demand Hedge Funds Drop Opposition to Foreclosure Prevention
Auction Rate Securities Dealers Ask Treasury for Liquidity Facility under Emergency Economic Stabilization Act
Congress May Form Select Committee to Reform Financial Regulation
House Leaders Outline Principles for Regulatory Overhaul
The Future of Securities Regulation Must Be an Omnibus Code
Grassley Asks for Strict Interpretation of Executive Travel Expenses under IRC 162
SEC Chair Cox Rejects Senator McCain's Call to Resign
Bailout Bill Gives SEC Oversight Role; Uses SEC Executive Compensation Rules
Congress Heeds SEC's Call for Regulation of Credit Default Swaps
House Passes Rescue Bill Despite Some Misgivings
Bailout Bill in Senate Retains House Securities Law Provisions
Members of Congress Urge Suspension of Mark-to-Market Accounting
House Voices Concerns After Defeat of Financial Rescue Bill
Senate to Consider Financial Bill Tonight, DeFazio Proposes Alternative
Senator Will Reintroduce in 111th Congress Bill Requiring SEC Registration of Hedge Fund Advisers
President-Elect Obama Details Key Principles to Guide Federal Financial Regulation Reform

Litigation

Antitrust Laws Preempted in Short Sale Case
Supreme Court Rejects Scheme Liability Theory Under Rule 10b-5
SEC Claim Against Hedge Fund Manager for Illegal PIPES Transactions Fails
Tellabs: Different Standard, Same Result
Panelists Consider Stonebridge, Tellabs Cases
Federal Court Rules Sarbanes-Oxley Whistleblower Statute Applies Outside US
Southern District of New York Rejects Selective Privilege Waiver
Spring-Loading and Bullet-Dodging of Stock Options Should Have Been Disclosed
Fraud Claims Revived Under Tellabs Analysis: 1st Circuit
Claimed Government Misconduct Not a Bar to Prosecution
Investment Firm Entitled to Rule 16b-3(d) Director Exemption
Chevron Deference May Be Due Sarbanes-Oxley Whistleblower Ruling
3rd Circuit: SLUSA No Bar to Aiding and Abetting,Foreign Claims by Trust
House Bill Would Make Securities Litigation More Transparent
Vice-Chancellor Strine Distinguishes Rulings Involving Delay of Shareholder Vote
Decision to Reject Merger and Deregister with SEC Protected by Business Judgment Rule
Company Breached Registration Rights Agreement
Canadian Appeals Court Extends Revlon Doctrine to Bondholders
PCAOB's Constitutionality Argued Before DC Federal Appeals Court
5th Circuit: No Private Money Damages Available for
13(d) Violations
Failure to Disclose Receipt of Wells Notice Does Not Support Demand Futility
Directors Owe No Fiduciary Duty to Warrant Holders, But They Deserve Truthful Answers
Canadian Supreme Court Reverses Extending Revlon Doctrine to Bondholders
Claim Fails, But Court Says Individual Scienter Not Necessary
Hedge Fund Groups File Amicus Briefs in Federal Court Appeal of 13(d) Case
Target Company Passes Revlon Test But Fails to Dislcose Interests of Financial Adviser
Delaware Supreme Court Answers Certified SEC Shareholder Proposal Questions
DOJ Will Revise McNulty Memo as Specter Readies Legislation on Attorney-Client Privilege
Hedge Funds Violate 13(d) in Amassing Positions But May Vote Their Shares
Delaware Supreme Court Will Answer SEC Shareholder Proxy Proposal Question
9th Circuit: State Claims Against Clearing Agencies Preempted
Federal Appeals Court Upholds Constitutionality of PCAOB
CAFA Trumps 33 Act's Non-Removal Position
Eighth Circuit Affirms Dismissal After Tellabs Review
9th Circuit Discusses Tellabs Standard
3rd Circuit Panel Reinstitutes Vioxx Action Against Merck
Panelists Address Securities Litigation Landscape
Appeals Court Curtails Extraterritorial Application of Federal Securities Laws
3rd Circuit Changes Course, Finds Reclassification Exempt from Section 16(b)
9th Circuit: Bar Orders in Settled Case Were Too Broad
2nd Circuit: Basic Presumption Could be Available in Suit Against Research Analysts
Sixth Circuit's "Most Plausible" Standard Did Not Survive Tellabs
"Stormy" Weather? The 2nd Circuit Didn't "Notice"
DC Circuit Denies Full Review of PCAOB Constitutional Challenge by 5-4 Vote

Market Regulation

Fed Must Be Given Powers as Market Stability Regulator Says Treasury Chief
Geithner Seeks Fed-Centric Unified Regulation of Global Commercial and Investment Banks
Geither Report Urges Enhanced Risk Management in Cross-Border Clearance and Settlement
Fed Chair Details Regulatory Response to Risk Management Failures
Volcker Says Regulate Investment Banks Like Commercial Banks in Light of Subprime Crisis
Volcker Examines Fair Value Accounting, Hedge Funds, and Fed's Role
Treasury Blueprint Envisions Fed as Macro-Prudential Regulator for Financial Firms
Treasury Official Views Fed-SEC Efforts on Consolidated Supervised Entities
SEC Official Defends Regulation of Investment Banks; But Says Legislation Needed
Fed Must Be Given Powers as Market Stability Regulator Says Treasury Chief
European Central Bank Official Predicts Single Securities Settlement Regime
FSA Requires Enhanced Disclosure of Short Positions
SEC Issues Emergency Order to Stop Naked Short Selling
In Light of Market Turmoil, Nasdaq Would Suspend Closing Bid Deficiency Test
UK and Australia Extend Bans on Short Selling
Division of Trading and Market Offers Guidance on Sale of Loaned but Recalled Securities
Inactive Markets, "Disorderly" Transactions Subject of SEC Advice

Municipal Securities

SEC Staff Acts to Thaw Frozen Auction-Rate Securities Market

PCAOB

PCAOB Official Sees Increased Joint Inspections with EU Audit Overseers
PCAOB Chair Examines Double-Edged Sword of Fair Value Accounting
Key Senator Says PCAOB Reliance on Foreign Audit Regulators Thwarts Sarbanes-Oxley
PCAOB's Gradison Endorses Move Towards Int'l Audit Standards
Levitt Committee Proposes Major Changes to PCAOB-SEC Auditor Oversight
PCAOB's Constitutionality Argued Before DC Federal Appeals Court
Big Four Object to Importing Legal Rule into PCAOB Standard for Audit Engagement Review
Federal Appeals Court Upholds Constitutionality of PCAOB
Final Report of SEC Advisory Committee on Improvements to Financial Reporting Impacts PCAOB
European Commission Adopts Equivalence Regime for non-EU Auditors; PCAOB Registants Included
PCAOB Suspends Audit Firm's Registration for Numerous Violations of Board Standards
DC Circuit Denies Full Review of PCAOB Constitutional Challenge by 5-4 Vote

Proxies

If Elected, Obama Would Make Say on Pay Legislation a Priority
Clinton Bill Would Require Shareholder Advisory Vote on Executive Pay
SEC Commissioner Troy Paredes on Shareholder Access and Business Judgment Rule
Delaware Supreme Court Answers Certified SEC Shareholder Proposal Questions

Registration

Corp Fin Director Would Vet Foreign Companies whose Shares Sold Through Mutual Recognition
SEC Staff Legal Bulletin Clarifies Registration Exemption for Securities Issued in Reorganizations
Company Breached Registration Rights Agreement
SEC Proposes Major Revision to Cross-Border Exemption Rules
SEC Staff Legal Bulletin Clarifies Registration Exemption for Securities Issued in Reorganizations
FINRA Proposes Rule 5122 on Private Placements Issued by Members
ABA State Securities Committee Requests Uniformity for State Compensatory Benefit Plan Exemptions
Form D Surveys Will Not Be Submitted to SEC
State/Federal Securities Committees Submit Form D Survey to SEC
Vermont Proposes Long-Awaited 506 Offering Rule
Colorado Proposes to Adopt Electronic Form D
Form D Amendments--When to File Them
Texas Provides Guidance on Filing Electronic Form D
Federal Reserve Board Staff Reviews Data on Foreign Private Issuer Deregistration under SEC Rule 12h-6
Missouri Implements Electronic Form D Filing ProceduresNorth Dakota Implements Temporary Form D For Rule 506 Offerings
Sarbanes-Oxley Act

SEC Staff Guides on Internal Controls Reporting for Acquired Business
Federal Court Rules Sarbanes-Oxley Whistleblower Statute Applies Outside US
Key Senator Says PCAOB Reliance on Foreign Audit Regulators Thwarts Sarbanes-Oxley
Chevron Deference May Be Due Sarbanes-Oxley Whistleblower Ruling
Housing Bill Would Apply Sarbanes-Oxley Governance to Fannie Mae and Freddie Mac; Require SEC to Report on Fair Value Accounting
Federal Appeals Court Upholds Constitutionality of PCAOB
Key Senators Dismayed by DOL's Narrow Application of Sarbanes-Oxley Corporate Whistleblower Provision

Securities and Exchange Commission

Corp Fin Director Would Vet Foreign Companies whose Shares Sold Through Mutual Recognition
Chairman Cox Details SEC's Sub-Prime Agenda for 2008
SEC, FINRA and NASAA Create Senior Investor Initiative
Atkins Supports Legislation to Curb Agency Abuse of Attorney-Client Privilege
Treasury Proposes Massive Overhaul of US Financial Services Regulation Affecting Fed, SEC, CFTC
SEC Moves Forward with Mutual Recognition Framework
Cox Praises Basel Committee Plan to Update Guidance on Liquidity Risk Management
SEC Details Staff's Involvement in Bear Stearns Transaction
Levitt Committee Proposes Major Changes to PCAOB-SEC Auditor Oversight
New Developments in SEC's Comment Letter Process Reviewed
SEC Commissioner Designate Paredes Charts Middle Course for Hedge Fund Regulation
Three Former SEC Chairs Endorse Obama Presidential Bid
Housing Bill Gives SEC Role in Oversight of Fannie Mae and Freddie Mac
Justice Douglas Presages Enron and Doing the Minimum
Delaware Supreme Court Answers Certified SEC Shareholder Proposal Questions
SEC Issues Emergency Order to Stop Naked Short Selling
SEC Advisory Committee on Improvements to Financial Reporting (Pozen Committee) Issues Final Report
Housing Bill Would Apply Sarbanes-Oxley Governance to Fannie Mae and Freddie Mac; Require SEC to Report on Fair Value Accounting
Bernanke Asks Congress to Reform SEC's Consolidated Supervised Entity Regime for Investment Banks
Delaware Supreme Court Will Answer SEC Shareholder Proxy Proposal Question
Global Accounting and Auditing Firms Raise Auditor Attestation Issues with SEC XBRL Proposal
Final Report of SEC Advisory Committee on Improvements to Financial Reporting Impacts PCAOB
SEC Guides on Use of Corporate Blogs; Entanglement and Adoption Liability Possible
House Passes Securities Act of 2008 Enhancing SEC Enforcement Powers
Grundfest and Beller Propose On-Line Questionnaire Driven Disclosure Regime as Part of SEC's 21st Century Disclosure Initiative
Senior Senator Questions SEC's Conduct in Bear Stearns Rescue
Former SEC Chair Levitt Calls for Merging the SEC and CFTC
SEC Urged to Overrule FASB Fair Value Accounting Interpretation
SEC to Hold Roundtable on 21st Century Disclosure Initiative
Commission Extends Temporary Orders
SEC Chair Will Convene Meeting of International Securities Regulators

Short Sales

SEC Issues Emergency Order to Stop Naked Short Selling
Antitrust Laws Preempted in Short Sale Case
FSA Requires Enhanced Disclosure of Short Positions
Congress Wants the SEC to Reinstate the Uptick Rule
SEC Issues Emergency Order to Halt Short Selling in Stocks of Financial Institutions and Require Hedge Fund Managers to Report Short Positions
SEC Adopts Rules to Curb Abusive Short Selling
SEC Staff Issues Guidance on New Short Positions Disclosure Form SH
Global Securities Regulators Follow SEC Lead and Ban Short Selling to Prevent Regulatory Arbitrage
SEC Amends Orders Halting Short Selling in Stocks of Financial Institutions and Requiring Hedge Funds to Report Short Positions
SEC Will Require Disclosure of Hedge Fund Short Positions
UK and Australia Extend Bans on Short Selling
Listed Companies Concerned about Short Selling Abuses Urge SEC to Reinstate Uptick Rule
SEC Requires Disclosure of Hedge Fund and Other Institutional Investors Short Positions into 2009
Commission Extends Temporary Orders
Bailout Bill in Senate Retains House Securities Law Provisions
Division of Trading and Market Offers Guidance on Sale of Loaned but Recalled Securities

Tax Matters

US Supreme Court Rules Trust Investment Advisory Fees Not Fully Tax Deductible
IRS Letter Ruling Impacts Executive Compensation Disclosure
House Bill Would Mandate Study of Tax Treatment of Hedge Funds
Senate Finance Committee Will Study the Taxation of Sovereign Wealth Funds
UK Will Reform Taxation of Asset Managers
IRS Revenue Ruling 2008-31 Says Property Derivatives Contract on US Real Property Index Not Interest in Real Property Under Tax Code
Senate Report Finds Banks Used Offshore Securities Accounts as Tax Havens to Evade US Tax Law
IRS Revenue Ruling Says Fund of Funds' Management Fees Are Not Deductible as Business Expenses
House AMT Fix Would End Capital Gains Treatment of Hedge Fund Managers' Carried Interest
Hedge Fund Group Opposes Deferred Compensation Provisions in Energy and Tax Extenders Bill Hedge Funds and Private Equity Funds Ask FASB for Exemptions from FIN 48
Senate Readying Legislation on Offshore Entities and Unrealized Business Income Tax, Energy Commodities Speculation
Demutualization Did Not Render Policyholder's Ownership Interest Zero for Purposes of Federal Tax Code; No Capital Gains Due on Cash for Stock
Tax Bills Opposed by Hedge Fund Industry Do Not Advance as Congress Recesses
IRS Notice 2008-81 Says Treasury Program to Support Money Market Funds Does Not Run Afoul of Federal Guarantee of Tax Exempt Bonds under IRC
Senate Report Finds Financial Institutions Used Swap Transactions to Help Offshore Hedge Funds Avoid Taxation of Stock Dividends
Revenue Ruling 2008-45 Says Company Cannot Transfer Frozen Defined Benefit Pension Plan to Independent Investment Firm
Revenue Ruling 2008-32 Says Director Who Served as Interim CEO Was Company Officer within Meaning of 162(m)
IRS Notice 2008-100 Applies IRC 382 to Loss Corporations Whose Instruments are Acquired under Capital Purchase Program of Emergency Economic Stabilization Act
Bailout Bill Curtails 162(m) Executive Compensation Deductibility for Troubled Entities
Bailout Bill in Senate Retains House Securities Law Provisions

Tender Offers and Ownership Reporting

5th Circuit: No Private Money Damages Available for
13(d) Violations
SEC Proposes Major Revision to Cross-Border Exemption Rules
Hedge Fund Groups File Amicus Briefs in Federal Court Appeal of 13(d) Case
Hedge Funds Violate 13(d) in Amassing Positions But May Vote Their Shares