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

U.S. Insider Trading Enforcement Goes Global

A recent inquiry into potential insider trading in Switzerland ahead of the acquisition of H.J. Heinz Company has drawn attention to the role of U.S. regulators in policing suspicious trading activities that take place outside of the United States. While the Heinz matter has attracted significant media attention, it is only the latest in a […]

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Posted in International Corporate Governance & Regulation, Practitioner Publications, Securities Litigation & Enforcement, Securities Regulation | Tagged , , , , , , , | Comments Off on U.S. Insider Trading Enforcement Goes Global

Addressing Conflicts of Interest in the Credit Ratings Industry

I strongly support the Commission’s effort to evaluate ways to improve our credit ratings system. Effective oversight of Nationally Recognized Statistical Rating Organizations (“NRSROs”) is critical to ensuring accurate ratings and promoting investor confidence. As an SEC Commissioner, I have focused singularly on how the SEC can best serve the needs of investors. It is […]

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SEC Publishes Proposed Rules Regarding Cross-Border Security-Based Swap Transactions

Yesterday the Securities and Exchange Commission (“SEC”) proposed rules and interpretive guidance regarding the application of the U.S. regulatory regime to cross-border security-based swap (“SBS”) transactions. The proposals also address the impact of cross-border SBS transactions on the registration obligations of security-based swap dealers (“SBSDs”), major security-based swap participants (“MSBSPs”), SBS clearing agencies, SBS execution […]

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Posted in Financial Regulation, International Corporate Governance & Regulation, Practitioner Publications, Securities Regulation | Tagged , , , , , , , , | Comments Off on SEC Publishes Proposed Rules Regarding Cross-Border Security-Based Swap Transactions

Comparative Company Law: Case Based Approach

There has been an exponential growth in interest in comparative company law in recent years. For example, in the period from 2002 to 2011, no fewer than ten monographs or edited collections were published exploring this new field of enquiry. The burgeoning literature was mirrored by an increase in University Postgraduate courses or programs in […]

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Posted in Academic Research, Comparative Corporate Governance & Regulation, International Corporate Governance & Regulation | Tagged , , , , , | 1 Comment

Merely Cracking the Glass Ceiling is Not Enough

Throughout my tenure as an SEC Commissioner, I have spoken out repeatedly on the subject of diversity – and the benefits it can bring to our economy. I strongly believe in the importance of diversity and inclusion. I continue to be deeply concerned with the lack of significant progress in the recruitment, retention, and promotion […]

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Disclosure of Non-GAAP Financial Measures

Companies commonly supplement their reported earnings under U.S. generally accepted accounting principles (GAAP) with non-GAAP financial measures that they believe more accurately reflect their results of operations or financial position or that are commonly used by investors to evaluate performance. A non-GAAP financial measure is a numerical measure of a company’s historical or future financial […]

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Shackling Short Sellers: The 2008 Shorting Ban

In September 2008, the U.S. Securities and Exchange Commission (SEC) temporarily banned most short sales in nearly 1,000 financial stocks. In our paper, Shackling Short Sellers: The 2008 Shorting Ban, forthcoming in the Review of Financial Studies, we examine the ban’s effect on market quality, shorting activity, the aggressiveness of short sellers, and stock prices. […]

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SRP Mid-Proxy-Season Results: 19 Boards Declassified, 13 Precatory Declassification Proposals Passed

Editor’s Note: Lucian Bebchuk is the Director of the Shareholder Rights Project (SRP), Scott Hirst is the SRP’s Associate Director, and June Rhee is Counsel at the SRP. The SRP, a clinical program operating at Harvard Law School, works on behalf of public pension funds and charitable organizations seeking to improve corporate governance at publicly […]

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Posted in Boards of Directors, Corporate Elections & Voting, HLS Research, Institutional Investors | Tagged , , , , , , , , , , , | Comments Off on SRP Mid-Proxy-Season Results: 19 Boards Declassified, 13 Precatory Declassification Proposals Passed

The Case for an Unbiased Takeover Law

Takeovers remain the most controversial corporate governance mechanism. According to pro-takeover commentators, takeovers are generally beneficial for corporate governance. Takeovers can displace poorly performing managers and facilitate corporate restructuring. From this perspective, regulation should encourage takeovers. On the opposite side of the debate, those who oppose hostile takeovers argue that they can disrupt well-functioning companies […]

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Posted in Academic Research, International Corporate Governance & Regulation, Mergers & Acquisitions | Tagged , , , , , | 1 Comment

Exit Consents in Restructurings – Still a Viable Option?

Exit consents are often used as a restructuring tool by issuers of bonds. Issuers invite bondholders to exchange their existing bonds for new bonds (usually with a lower principal amount). In order to participate in the exchange, bondholders must agree to vote in favour of a resolution that amends the terms of the existing bonds […]

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Posted in Banking & Financial Institutions, Corporate Elections & Voting, Court Cases, International Corporate Governance & Regulation, Practitioner Publications | Tagged , , , , , , , | Comments Off on Exit Consents in Restructurings – Still a Viable Option?