Shadow Banking Remains on the FSB Agenda

The FSB Has a New Shadow Banking Roadmap in Store for Brisbane in November

Wednesday, September 24, 2014

Following its September meeting in Cairns, the Financial Stability Board (FSB) has published a press release highlighting some of the vulnerability the FSB still sees as threatening the global financial system.  The release also lays out some work plans for some of the FSB’s ongoing core financial reform efforts, including the area of shadow banking.  

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UK's Financial Reporting Council Issues New UK Corporate Governance Code

Better Corporate Governance and Risk Management Through Shareholder Engagement

Monday, September 22, 2014

The Financial Reporting Council (FRC), UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment, has issued a revised UK Corporate Governance Code.  The changes to the Code are designed to strengthen the focus of companies and investors on the longer term and the sustainability of value creation. One aspect of this refocusing is shareholder engagement.  The revised code seeks to ensure better communication ...
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Bank Directors May Find Themselves With a Heightened Standard of Care

To What Extent Should Regulators Dictate How Bank Boards Oversee Risk?

Wednesday, September 17, 2014

A recent address by Federal Reserve Governor Daniel Tarullo has raised the specter of expanded fiduciary duties for bank directors.  Referencing a recent academic paper proposing a simple negligence standard for expanded board oversight responsibility for risk-taking by systemically important financial institutions, Mr. Tarullo discussed how the nature of finance and financial regulation affects corporate governance and why, in turn, special corporate governance measures are needed as ...
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Could Redemption Gates Actually Encourage Runs on Funds?

Economists at the NY Fed posit that in some cases redemption gates may the have opposite effect intended

Thursday, August 28, 2014

Under rules recently finalized by the SEC, all money market funds will be permitted, and under some circumstances required, to impose liquidity fees and gates against investor redemptions if the fund’s weekly liquid assets fall below specified thresholds. In their release, the SEC said the purpose of these new rules is to mitigate money market funds’ susceptibility to heavy redemptions and improve their ability to manage and thwart possible contagion from redemptions.  An ...
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Senate Democrats Call for Executive Action to Stop Corporate Inversions

While Congress works to end tax loopholes, Presidential action is necessary.

Thursday, August 14, 2014

“Inverted corporations take advantage of all the things American tax dollars provide—from tax credits for research and development, investments in transportation infrastructure, and strong patent and copyright protections, to profiting from taxpayer-supported programs like Medicare and the Veterans Health Administration. Yet, these companies claim to be foreign corporations when it’s time to pay their tax bill—denying the United States billions of dollars in tax ...
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Dodd-Frank Implementation: Are We At the End of the Beginning, or the Beginning of the End?

Tuesday, August 12, 2014

With the Dodd-Frank Wall Street Reform and Consumer Protection Act having just celebrated its fourth birthday, where exactly are we in the the reform of our seemingly ever-evolving regulatory framework? Dan Ryan, Chairman of the Financial Services Regulatory Practice at PricewaterhouseCoopers LLP takes a look at this very question to help us determine what is imminent, what is delayed, and what remains in limbo with regard to Dodd-Frank implementation.
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FSOC May Seek Better Regulation in Lieu of SIFI Designation for Asset Management Industry

Council Adopts a "Wait and See" Attitude

Friday, August 01, 2014

In an apparent reaction to strong criticism from legislators, asset management industry groups, and even the Securities and Exchange Commission,  the Financial Stability Oversight Counsel (FSOC) has indicated that it may encourage stronger regulation of the asset management industry, rather than designating certain industry participants as SIFIs.  In the FSOC's press release for its July 31, 2014 meeting, the Council indicated that it was encouraged by the new money market rules ...
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Does Mandatory Shareholder Voting Prevent Bad Acquisitions?

Paper studies how much power shareholders should delegate to the board of directors.

Wednesday, July 23, 2014

In the United Kingdom, corporate acquisition deals larger than 25% in relative size are subject to a mandatory shareholder vote, while in most of continental Europe there is no vote, and in Delaware voting is largely discretionary. In a new paper by Marco Becht, Professor of Corporate Governance at the Université libre de Bruxelles; Andrea Polo of the Department of Economics and Business at the Universitat Pompeu Fabra and Barcelona GSE; and Stefano Rossi of the Department of Finance ...
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Should Pension Funds Police Corporate Governance?

Tuesday, July 22, 2014

It is often said that good corporate governance helps reduce a company’s investment risk, ensures the effective deployment of shareholder capital, and ultimately contributes to the long-term performance of public companies. . . On the other hand, the absence of a robust corporate governance infrastructure can lead to poor decisions resulting in bad outcomes for the company and its shareholders.  SEC Commissioner Luis A. Aguilar has long been a champion of empowering ...
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SEC Adopts Final Cross-Border Security-Based Swap Rules

Thursday, July 10, 2014

On June 25, 2014, the Securities and Exchange Commission finalized new rules and interpretive guidance addressing the cross-border application of a security-based swap regulatory framework called for under the Dodd-Frank Act.  These final rules are the first of a series of rules and guidance on cross-border security-based swap activities for market participants.  According to the SEC, these new rules will be key to finalizing the remaining outstanding proposals on security-based ...
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