Author Archives: Harvard Law School Forum on Corporate Governance and Financial Regulation

Recovery Planning for Large National Banks

On December 16, 2015, the Office of the Comptroller of the Currency (the “OCC”) solicited public comment, through a Notice of Proposed Rulemaking (the “NPR”), [1] on proposed guidelines to establish standards for recovery planning by certain large insured national banks, insured Federal savings associations and insured Federal branches of foreign banks (the “Guidelines”).

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CFTC’s Proposed Rules on Cybersecurity

Last week, the Commodity Futures Trading Commission (CFTC) proposed cybersecurity regulations for electronic trading platforms, clearing organizations, and data repositories. Most importantly, the proposal calls for five types of systems testing, the most impactful of which is the requirement that organizations test key controls (e.g., access to sensitive data or procedures that control changes to […]

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Posted in Accounting & Disclosure, Banking & Financial Institutions, Derivatives, Legislative & Regulatory Developments, Practitioner Publications, Securities Regulation | Tagged , , , , , , , , , , , , , | 2 Comments

Ten Trends in SEC Enforcement Actions

As 2015 winds down, we offer the following observations about ten important trends in SEC enforcement actions. 1. Increased Number of Enforcement Actions The number of SEC enforcement actions continues to grow. In FY 2015, the SEC filed 807 enforcement actions, of which 507 were independent actions for violations of the securities laws and 300 […]

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United States v. Litvak: Materiality of Pricing Misstatements

On December 8, 2015, the Second Circuit issued its decision in United States v. Litvak, which reversed the defendant’s conviction and remanded the case for a new trial. Notwithstanding the reversal, the Court reaffirmed the “longstanding principle” that Section 10(b) of the Securities Exchange Act of 1934 is to be construed “flexibly,” and held that […]

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Trends in S&P 500 CEO Compensation

Executive pay continues to be a hotly debated topic in the boardroom among investors and proxy advisors, and it routinely makes headlines in the media. As the U.S. was in the heart of the financial crisis in 2008-2009, CEO total direct compensation (TDC = base salary + actual bonus paid + grant value of long-term […]

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SEC Guidance on Unbundling in M&A Context

On October 27, 2015, the SEC issued new Compliance and Disclosure Interpretations (the 2015 C&DIs) regarding unbundling of votes in the M&A context. The 2015 C&DIs address the circumstances under which either a target or an acquiror in an M&A transaction must present unbundled shareholder proposals in its proxy statement relating to provisions in the […]

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Posted in Boards of Directors, Corporate Elections & Voting, Legislative & Regulatory Developments, Mergers & Acquisitions, Practitioner Publications, Securities Regulation | Tagged , , , , , , , , , , , , , , , , , | Comments Off on SEC Guidance on Unbundling in M&A Context

FAST Act: Capital Formation Changes and Reduced Disclosure Burdens

On December 4, 2015, President Obama signed into law the Fixing America’s Surface Transportation Act (FAST Act), which, despite its name, contains several new provisions designed to facilitate capital formation and reduce disclosure burdens imposed on companies under the federal securities laws. The provisions build upon the 2012 Jumpstart Our Business Startups Act (JOBS Act), […]

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Public Audit Oversight and Reporting Credibility

As the accounting scandals in the early 2000s illustrated, reliable financial reporting is a cornerstone of trust in the stock market, which in turn plays a key role for investor participation (Guiso et al., 2008). In an effort to restore trust in financial reporting after the scandals, the U.S. Congress passed the Sarbanes-Oxley Act (hereafter, […]

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A Busy Year in U.S. M&A Antitrust Enforcement

As M&A activity reached an unprecedented level in 2015, the U.S. antitrust agencies continued to actively investigate and pursue enforcement actions impacting transactions in many sectors of the economy. The overall level of merger enforcement was roughly in line with the aggressive levels of the past few years, with the Federal Trade Commission and the […]

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Regulatory Competition and the Market for Corporate Law

There is a longstanding debate in corporate law and governance over the merit of competition for corporate laws. “Race to the top” scholars point to the fact that Delaware, the state where most public firms are incorporated, has laws that are highly responsive to business and has been a laggard in enacting anti-takeover statutes. Proponents […]

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