Regulation & Compliance: Page 48
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xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
The Jury’s Out
Last January, Apollo Group, owner of the University of Phoenix, learned a hard lesson about the risk of going to trial when a jury ordered it to pay shareholders up to $278 million in a securities class-action case. But the company enjoyed a reversal of fortune in August, when the judge who overs...
By Alix Stuart • Oct. 1, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Into the Land of the Unknown
HOW many votes in Congress will the latest financial upheaval change? That is the calculus underway in Washington, D.C., after the House of Representatives defeated the proposed $700 billion mortgage-rescue plan by 228 to 205 on Monday September 29th. Democrats backed it by 140 votes to 95, while...
By Economist Staff • Sept. 30, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Studies: Bailout Backers Got More Bank Donations
In the wake of the defeat handed the Bush administration’s $700 billion financial rescue plan by the House on Monday, two groups issued reports suggesting that the receipt of corporate political contributions may have influenced lawmakers’ votes.The reports from two nonpartisan organizations that...
By Kate Plourd • Sept. 30, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Reid: Senate Will Vote on Bailout
One day after the House voted down the financial rescue plan, Senate Majority Leader Harry Reid (D-Nev.) pledged to have a vote on a bailout proposal in the near future. Reid on Tuesday did not say when the Senate would move to the bailout bill or what it might look like in order to attract more ...
By Roll Call Staff • Sept. 30, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Federal Probes Aimed at Fannie, Freddie
Fannie Mae and Freddie Mac say they are officially targets of two federal investigations — one by the Securities and Exchange Commission Enforcement Division and one by the U.S. Attorney’s Office for the Southern District of New York.The two mortgage companies, which were recently taken over by t...
By Stephen Taub • Sept. 29, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Finger-pointing Starts
House GOP leaders are blaming a floor speech by Speaker Nancy Pelosi (D-Calif.) as the reason that some Republicans voted against the $700 billion bailout bill.At a news conference after the vote, House Chief Deputy Minority Whip Eric Cantor (R-Va.) held up a copy of Pelosi’s floor speech and sai...
By Roll Call Staff • Sept. 29, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
House Votes Down Financial Bailout Deal
The House has voted 228-205 to reject the financial sector bailout bill crafted over the weekend by a bipartisan group of House and Senate negotiators, Roll Call reported.The paper said that Speaker Nancy Pelosi (D-Calif.), Majority Leader Steny Hoyer (D-Md.), and Minority Leader John Boehner (R-...
By Stephen Taub • Sept. 29, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Securities Group Gets Off the Sidelines
Wall Street lobbyists have been largely silent this week as Congressional leaders huddled behind closed doors to hammer out the historic bailout package. Now, with the House vote on the measure about an hour away, one of the financial service industry’s heaviest-hitting groups is asking its membe...
By Roll Call Staff • Sept. 29, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Conservatives Come Out Strong against Bailout Bill
As the House kicked off three hours of debate on the $700 billion bailout package Monday morning, conservative Republicans wasted no time expressing their opposition to the massive government support of the financial sector.Before the debate began, Rep. Louie Gohmert (R-Texas) requested that the ...
By Roll Call Staff • Sept. 29, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
PMI Insurer Seeks Cover
In a sign of further fallout from the housing market meltdown, mortgage insurer MGIC Investment Corp. announced Friday that its subsidiary, Mortgage Guaranty Insurance Corp., is eliminating one type of coverage that it offers to lenders.MGIC provides private mortgage insurance, which homebuyers t...
By Stephen Taub • Sept. 26, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Not So Fast, Congressional Voices Warn
The congressional split over the Bush Administration’s $700-billion bailout plan for the U.S. financial system is showcasing some strong voices resounding with alternative ideas.One alternative comes from Sen. Jim DeMint (R-SC), who sees the proper prescription to correct the breakdown in the sys...
By Stephen Taub • Sept. 24, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Defaulted Bank Loans Face Lower Recovery Rate
Recovery rates for defaulted bank debt could be far lower than historic averages, Moody’s Investors Service warns in a new report.The credit rating agency predicts recovery rates of 60 percent or lower for defaults on bank debt by companies with bank-debt-only capital structures. The historic ave...
By Stephen Taub • Sept. 23, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Maxim Backdating-Case Deal Involves ex-CFO, ex-CEO
Former Maxim Integrated Products CFO Carl Jasper, along with ex-CEO Jack Gifford, apparently are participating in a broad tentative company agreement to settle litigation related to the semiconductor concern’s backdating of stock options.The two were not identified by name in the Maxim news relea...
By Stephen Taub and Roy Harris • Sept. 23, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Stevens Will Be Excused From Trial to Vote
Alaska Sen. Ted Stevens (R) will be excused from appearing at his trial in the U.S. District Court for the District of Columbia in the event of Senate votes, Judge Emmet Sullivan ruled Tuesday. But Sullivan warned Stevens, who faces seven counts of filing false financial statements, that his abse...
By Roll Call Staff • Sept. 23, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Lehman D&O Risk Prompts Lawsuit
A shareholder lawsuit accuses an energy company’s directors and officers of not fully revealing the shareholders’ exposure to Lehman Brothers’ credit problems before the investment bank collapsed last week. The complaint issued by law firm Coughlin Stoia Geller Rudman & Robbins says that foll...
By Sarah Johnson • Sept. 23, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
New York: Credit-Default Swaps=Insurance
Beginning in January, New York will regulate part of the previously unregulated credit-default-swap market, the state’s governor, David Paterson, announced today. The faulty use of the swaps has been heavily blamed for the current Wall Street credit crisis.Gov. Paterson also called on the federal...
By Stephen Taub • Sept. 22, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Insure This: Retiree Group Sues AIG Execs
The CEO and directors of American International Group Inc. were sued in Delaware Chancery Court by the City of New Orleans Employees’ Retirement System, which blamed mismanagement and risk-taking for the shareholder losses. The lawsuit, believed to be one of the first filed against the insurance ...
By Stephen Taub • Sept. 18, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Systemic Risk Haunts Credit-Default Swaps
The credit-default swap has been called both “the most important instrument in finance” by former Federal Reserve Chairman Alan Greenspan and a financial “weapon of mass destruction” by Warren Buffett. This week’s bankruptcy of Lehman Brothers and bailout of the insurer AIG may have proved both m...
By Alan Rappeport • Sept. 18, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
If McCain Were President He’d Fire Cox
Senator John McCain said that if he were president he would immediately fire Securities and Exchange Commission Chairman Christopher Cox because “in my view he has betrayed the public’s trust.”The Republican nominee for president made the statement while campaigning in Cedar Rapids, Iowa. “If I w...
By Roy Harris • Sept. 18, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Fed Rescues AIG in $85 Billion Takeover
In a stunning move, the Federal Reserve announced at 9 p.m. Tuesday that it would take over failing insurance giant AIG and lend it $85 billion.“The [Federal Reserve Board of Governors] determined that, in current circumstances, a disorderly failure of AIG could add to already significant levels ...
By Tim Reason • Sept. 16, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Credit Suisse Joins Those Buying Back ARS
Credit Suisse Securities (USA) LLC agreed to pay civil penalties of $15 million, and to buy auction rate securities from individual investors, as part of a settlement announced by the North American Securities Administrators Association (NASAA). Under the settlement with North Carolina state secu...
By Stephen Taub • Sept. 16, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
AIG’s Fate Hanging in the Balance
Fueling more speculation about a cruel fate for embattled American International Group, Credit Suisse securities analyst Thomas Gallagher warned in a note to clients that there is a “heightened probability of a potential bankruptcy filing” by the giant holding company for insurance and other busi...
By Stephen Taub • Sept. 16, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Meltdown Means Opportunity for Risk Managers
The downward slide of Lehman Brothers and Merrill Lynch, culminating in this weekend’s stunning announcements, seems like more evidence of the poor quality of risk management on Wall Street — alongside Bear Stearns’ failure, the $7 billion loss caused by a rogue trader at Société Générale, and th...
By Robert Hertzberg • Sept. 15, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
KB Ex-CEO Settles SEC Backdating Claim
The former chairman and CEO of homebuilder KB Home Inc., Bruce E. Karatz, agreed to pay $7.2 million to settle civil charges for his role in a stock-option backdating scheme that benefitted himself and other KB Home officers and employees.According to the regulator, from at least 1999 through 200...
By Stephen Taub • Sept. 15, 2008 -
xdfolio. "Policies Standards Compliance" [Illustration]. Retrieved from Pixabay.
Bankrupt Sponsor Leaves Pro Team in the Lurch
Michael Phelps may be a hot sponsorship commodity after collecting his record-breaking haul of eight gold medals at the Beijing Olympics. But companies still face risk when sponsorships go sour — an occurrence that likely will increase as the economy slows.The latest company to feel the sting of ...
By Marie Leone • Sept. 12, 2008
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