News & Analysis as of

Liquidation Broker-Dealer

Faegre Drinker Biddle & Reath LLP

A Rollover Recommendation Is a Securities Recommendation

The Department of Labor considers a rollover recommendation to be a recommendation to liquidate the investments in a participant’s 401(k) account or to transfer (and change) securities. In addition, as explained in...more

Jones Day

Second Circuit: Madoff Ponzi Scheme Customers Did Not Receive Fictitious Profit Payments "For Value"

Jones Day on

In the latest chapter of more than a decade of litigation involving efforts to recover fictitious profits paid to certain customers of Bernard Madoff's defunct brokerage firm as part of the largest Ponzi scheme in history,...more

Jones Day

FDIC, SEC Adopt Rule on Orderly Liquidation of Large Broker-Dealers Under Title II of Dodd-Frank

Jones Day on

The Situation: Title II of the Dodd-Frank Act created an insolvency framework for the orderly liquidation of large financial companies, including SEC-registered broker-dealers, if certain financial distress and systemic risk...more

Goodwin

Financial Services Weekly: Amendments To SEC Proxy Solicitation Rules Approved By A 3-1 Vote

Goodwin on

In This Issue. The Securities and Exchange Commission (SEC) finalized amendments to its proxy solicitation rules that will modify the practices of proxy advisory firms, providing them with greater transparency and...more

Kramer Levin Naftalis & Frankel LLP

Funds Talk: June 2017 - FINRA Expands Margin Rules for Mortgage-Backed Securities Transactions

FINRA has introduced an expansion of Rule 4210 (the Rule), effective Dec. 15, 2017, importing margin concepts into the world of mortgage-backed transactions. ...more

Dechert LLP

SEC and FDIC Propose Dodd-Frank Broker-Dealer Resolution Rules

Dechert LLP on

Troubled financial institutions, some with substantial broker dealer operations, played a prominent role in the 2008 financial crisis. In an effort to protect the financial system from serious threats posed by significant...more

Dorsey & Whitney LLP

SEC Charges Municipal Bond Issuer, Broker With Fraud

Dorsey & Whitney LLP on

Municipal bond offerings have become a key focus of SEC Enforcement. The agency has brought a series of actions in addition to an initiative that encourages the self-reporting of underwriters in return for reduced sanctions....more

Goodwin

Financial Services Weekly News - February 2015 #4

Goodwin on

Regulatory Developments - CFPB Announces No-Action Policy for Innovative Consumer Products - On Feb. 18, the CFPB issued a final policy statement that permits some companies with innovative consumer products to seek...more

Katten Muchin Rosenman LLP

Bridging the Week - December 2014 #3

US Judge Says Sentinel 2007 Transfers to BNY Mellon Cannot Be Reversed as Made in Good Faith - The Bank of New York Mellon Corporation (formerly Bank of New York) was absolved of having engaged in “egregious...more

Dorsey & Whitney LLP

SEC Efforts To Compel SIPIC Coverage For Stanford Victims Rejected

Dorsey & Whitney LLP on

The D.C. Circuit rejected efforts by the SEC to compel the Securities Investor Protection Corporation to liquidate a broker-dealer that was part of the Stanford Ponzi scheme empire. The investors had purchased CDs from an...more

Dechert LLP

Claims Under Repurchase Transactions Do Not Qualify As Customers’ Claims in Broker-Dealers’ Liquidation

Dechert LLP on

Judge James M. Peck of the Bankruptcy Court for the Southern District of New York held, on June 25, 2013 (the “Lehman Op.”), that claims under repurchase transactions (“Repos”) do not qualify as customer claims and therefore...more

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