Compliance Bricks and Mortar for the End of 2012

bricks 9

It’s been a slow week in compliance. The highways and trains have been near empty during my commute. It seems there are more seagulls than people in the Financial District. But a few compliance-related stories caught my attention.

Why a Popular Subsidy for Banks Died in the Senate by John Carney in CNBC’s NetNet

The program, which is known as TAG, was launched during the financial crisis to support liquidity and bank stability. The basic idea was to cover non-interest bearing deposit accounts used for things like payrolls that exceeded the normal FDIC insurance limits. Banks could opt-in and pay a fee that was supposedly based on estimates of the program’s costs.

SEC v. Schooler: Real Estate Investment Fraud Shut Down by Sarah Emery in The Race to The Bottom

To obtain a preliminary injunction granted, the SEC must establish a prima facie case that the Defendants violated securities law and a reasonable likelihood that the violations will be repeated. Defendants asserted that the interests in the general partnerships were not securities.

The definition of security does not explicitly include interests in general partnerships. The SEC, however, asserted that the interests were investment contracts. An investment contract is a “a contract, transaction, or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party.”

The Financial Planning Flowchart by Nick Summers and Karen Weise in Bloomberg
Take a deep breath and answer honestly:
financial planning flowchart

I’m going to end with some grammar humor from my favorite comic Saturday Morning Breakfast Cereal:

relationship grammar test

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