Feds Sue to Block “Big Five” Publishing Merger

The U.S. Department of Justice has sued to block Penguin Random House’s proposed $2.18 billion acquisition of Simon and Schuster, saying the merger of two of the “Big Five” book publishing companies would harm authors and consumers.In an antitrust complaint filed on Tuesday, the DOJ said the deal...

By Matthew Heller • Nov. 3, 2021

Does the SEC Care if You’re Green?

One year after issuing controversial guidance for following environmental-risk disclosure rules, the Securities and Exchange Commission appears to have given the matter little attention.In a review of comments to regulatory filings made in 2010, law firm Davis Polk found only six instances of SEC...

By Sarah Johnson • Oct. 28, 2021

Music Streamer Settles SPAC Fraud Case

Akazoo, a Greek firm purporting to be a music streaming service, has agreed to pay $38.8 million to settle allegations that it defrauded investors both before and after it went public through a SPAC merger.The U.S. Securities and Exchange Commission said Akazoo grossly misrepresented the nature a...

By Matthew Heller • Oct. 28, 2021

Starting on the Path to Net-Zero Emissions

The urgency around global warming and climate change is increasing worldwide, with public and private entities feeling pressure to reduce their carbon footprints. According to the recent UN Climate Change Report, limiting human impact on global warming requires reaching at least net-zero CO2 emis...

By Vincent Ryan • Oct. 27, 2021

U.S. Insurance Pricing Rises 14% in Q3

Insurance pricing increases moderated across most geographic regions in the third quarter but accelerated in the U.S. amid a surge in cyber insurance pricing.According to the latest Global Insurance Market Index from Marsh, pricing rose 15% globally for a second straight quarter due to a slower r...

By Matthew Heller • Oct. 26, 2021

Small Business CFOs Must Build Ethical Awareness

Whether you work for a large public company or a smaller private one, the pressure to deliver results can be intense. Wall Street expects growth, the board of directors expects annual plans to be achieved, and owners expect a return on their investment, especially those who have put their life sa...

By Steve McNally • Oct. 20, 2021

Will the SEC Finally Approve a Tougher Clawback Rule?

During a recent speech, Securities and Exchange Commission Chair Gary Gensler said he would be pushing his staff to recommend rules for clawing back public company executive pay.The idea that executives — initially, CFOs and CEOs — should return certain kinds of compensation to their publicly-hel...

By Vincent Ryan • Oct. 11, 2021

Limit ESG Disclosures to Cash-Flow Impacts: Economists

Should the Securities and Exchange Commission write rules that require disclosure of greenhouse gas (GHG) emissions from a company’s operations and, possibly, its entire value chain? Not if those emissions don’t affect the company’s financial performance, says the Financial Economists Roundtable....

By Vincent Ryan • Oct. 11, 2021

Hemp Startup Founders Accused of Stock Fraud

The two co-founders of CanaFarma Hemp Products have been charged with fraudulently raising $15 million from investors by making false statements about the “farm to table” hemp startup and its management.The U.S. Securities and Exchange Commission said Vitaly Fargesen and Igor Palatnik misrepresen...

By Matthew Heller • Oct. 6, 2021

Ex-Goldman Compliance Analyst Accused of Insider Trading

A former senior compliance analyst at Goldman Sachs has been charged with abusing his position of trust to make more than $471,000 in profits from insider trades.The U.S. Securities and Exchange Commission said Jose Luis Casero Sanchez, a Spanish national, had access to highly sensitive informati...

By Matthew Heller • Sept. 29, 2021

Fed Regional Chiefs Resign Amid Ethics Outcry

Two top U.S. Federal Reserve officials have resigned amid an outcry over personal investment activities that raised ethical concerns.The resignations of Robert Kaplan, president of the Dallas Fed, and Eric Rosengren, president of the Boston Fed, came less than two weeks after the public disclosur...

By Matthew Heller • Sept. 28, 2021

Wells Fargo Fined $37M Over Forex Fraud

For the second time this month, Wells Fargo has reached a settlement with the U.S. government, agreeing to pay a $37.3 million fine for overcharging customers of its foreign exchange service.According to the Department of Justice, Wells Fargo sales specialists systematically charged forex custome...

By Matthew Heller • Sept. 28, 2021

Ad Giant WPP Fined $19M for FCPA Violations

U.K.-based WPP, the world’s largest advertising group, has agreed to pay $19 million to settle charges that it failed to properly supervise subsidiaries in foreign countries, resulting in bribery and other illicit schemes.The U.S. Securities and Exchange Commission said WPP violated the Foreign C...

By Matthew Heller • Sept. 24, 2021

Subprime Auto Securitization Was a ‘House of Cards’

The two former principals of subprime auto lender Honor Finance have been charged with defrauding investors by misrepresenting the quality of loans that they packaged into a $100 million securities offering.The U.S. Securities and Exchange Commission said CEO James Collins and Chief Operating Off...

By Matthew Heller • Sept. 24, 2021

Coinbase Shelves ‘Lend’ Amid SEC Pushback

Coinbase has decided to scrap its plan to offer customers a digital asset lending platform rather than risk a legal showdown with the U.S. Securities and Exchange Commission.The crypto firm’s decision not to proceed with the Coinbase Lend product came less than two weeks after Coinbase blasted th...

By Matthew Heller • Sept. 21, 2021

SEC Brings First Crowdfunding Fraud Case

The U.S. Securities and Exchange Commission has brought its first enforcement action against promoters of crowdfunding offerings, alleging three people defrauded investors of more than $1.9 million.In a civil complaint filed on Monday, the SEC said Robert Shumake and his associates Willard Jackso...

By Matthew Heller • Sept. 20, 2021

Fed’s Powell Orders Review of Ethics Rules

U.S. Federal Reserve Chair Jerome Powell has ordered a “comprehensive” review of the bank’s ethics rules amid concerns over the investment activities of two regional presidents.In-house ethics officers concluded that the activities of Robert Kaplan, president of the Dallas Fed, and Boston’s Eric ...

By Matthew Heller • Sept. 17, 2021

Ex-Controller Testifies in Trial of Theranos CEO

Blood-testing startup Theranos provided investors with revenue projections that did not match the reality of its finances, the company’s former controller has testified in the fraud trial of founder and CEO Elizabeth Holmes.So Han Spivey, who also goes by Danise Yam, said Holmes gave her a revenu...

By Matthew Heller • Sept. 15, 2021

App Annie Fined $10 Million for Misusing Data

Mobile data and analytics company App Annie has agreed to pay $10 million to settle charges that it used confidential information from app developers to induce trading firms to become subscribers.The settlement announced on Tuesday resolves the U.S. Securities and Exchange Commission’s first enfo...

By Matthew Heller • Sept. 15, 2021

Biden Mandates Vaccines for Large Companies

Biden reveals his six-point plan President Joe Biden has significantly extended COVID-19 vaccine requirements into the American workplace, saying large employers must have their workers vaccinated or tested weekly.The new vaccine requirement for companies with 100 or more employees is part of a s...

By Matthew Heller • Sept. 10, 2021

Coinbase Clashing With SEC Over Lending Platform

Coinbase may be heading for a showdown with the U.S. Securities and Exchange Commission over its plan to offer customers a digital asset lending platform.The crypto firm said it had reached out to the SEC ahead of the launch of Coinbase Lend but the agency had responded with “intimidation tactics...

By Matthew Heller • Sept. 9, 2021

BitConnect Charged With $2B Crypto Fraud

In what may be one of the largest cryptocurrency scams ever, BitConnect and its founder have been charged with defrauding investors of $2 billion in funds they said would be used to trade Bitcoin.According to the U.S. Securities and Exchange Commission, BitConnect conducted a fraudulent and unreg...

By Matthew Heller • Sept. 2, 2021

Most U.S. Employers to Require COVID-19 Vaccination

Amid pressure from the federal government and their own workers, a majority of U.S. employers now say they will have one or more COVID-19 vaccine mandates in place by the end of the year.A Willis Towers Watson survey of 961 companies found that 52% plan to require employees to be vaccinated in th...

By Matthew Heller • Sept. 1, 2021

Progressives Urge Biden to Replace Fed Chief

A group of progressive Democrats has called for Federal Reserve Chair Jerome Powell to be replaced, saying the central bank needs a leader who is more aggressive on financial regulation and climate change.Powell’s term as chair ends in February and President Joe Biden is expected to decide as ear...

By Matthew Heller • Sept. 1, 2021

Feds Investigating Peloton Safety Disclosures

Peloton has disclosed that three government agencies are investigating its reporting of safety hazards associated with exercise treadmills it recalled in May.The home fitness company initially rejected a request from the U.S. Consumer Product Safety Commission to recall its Tread Plus product ami...

By Matthew Heller • Aug. 30, 2021