During the Great Panic, there was some grumbling that private equity-backed companies were posing a great risk to the economy. The Private Equity Council has done some research and came to the conclusion that the opposite is true. They are less likely to default. Of course, there are lots of caveats and distinctions in the [...]
Are Private Equity-Backed Companies More Likely to Default?
on April 7, 2010 in Private Investment Funds
Accredited Investors under the Restoring American Financial Stability Act
on April 6, 2010 in Private Investment Funds
One of the surprises in the Restoring American Financial Stability Act of 2010 is that it proposes to raise the standard for being an accredited investor. Section 412 of the bill would require the SEC to increase the dollar thresholds to be qualified as an accredited investor. Section 413 would require the GAO to study [...]
Incentives, Productivity and NUMMI
on April 5, 2010 in Compliance Programs, Publish to KM Space
I recently listened to a great show from This American Life. They covered the story of New United Motor Manufacturing Inc. (NUMMI). General Motors and Toyota opened NUMMI in 1984 as a joint venture so Toyota could start building cars in the US. Toyota showed GM the secrets of its production system and how Toyota [...]
Weekend Book Review: The Informant
on April 3, 2010 in Book reviews
I’ve had Kurt Eichenwald’s The Informant on my reading list for a long time. It dropped farther down the list after seeing the previews for the Steven Soderbergh movie. Why read the book when you can watch the movie? What raised my interest was hearing a great radio segment from This American Life that tells [...]
The SEC Drinks Its Own Champagne
on April 2, 2010 in SEC News
The SEC has named its first chief compliance officer: Kathleen Griffin. She will be tasked with oversight of employee securities transactions and financial disclosure reporting. The creation of a compliance program to prevent insider trading came from last year’s insider trading scandal at the SEC. The Office of the Inspector General reported that “the Commission [...]
Compliance Bits and Pieces for April 2
on April 2, 2010 in Compliance Bits and Pieces
Here are some recent stories that caught my eye: Q&A with Ethisphere Executive Director Alex Brigham in Corporate Compliance Insights The Ethisphere Institute recently announced the 2010 World’s Most Ethical Companies, highlighting 100 organizations that lead the way in promoting ethical business standards. These companies go beyond legal minimums, introduce innovative ideas benefiting the public [...]
Some of My Favorite April Fool’s Day Items on the Web
on April 1, 2010 in Compliance Bits and Pieces
The web is full of surprises today. Here are some of my favorites The iCade to turn your iPad into an arcade cabinet Google has renamed itself to Topeka Topeka went first and renamed themselves “Google” to attract their fiber for communities program. Atlassian’s Fourwalls A location based social networking platform for inside your company. [...]
April Fool’s Day
on April 1, 2010 in Compliance Bits and Pieces
April Fool’s Day is celebrated with hoaxes and practical jokes. I’m hesitant to post anything today for fear that a serious story would be seen as a joke or a joke would be seen as a serious story. A few years ago, if I had told you that Bear Stearns, Lehman Brothers, AIG, General Motors [...]
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