The Big Short highlighted some of the difficulties of taking an investment position in a real estate downturn. The situation was taken a step further with Goldman Sachs’ help in putting together mortgage backed securities with the primary purpose of helping a client take an investment position that the securities will default. It turned out … Read more »
Year: 2011
What Does a Criminal Look Like?
A group of Kentucky men would prefer to spend time in jail time rather comply with vehicle safety rules. As you can see from their booking photos, the men are Amish and belong to the Old Order Swartzentruber Amish group. They say their religious beliefs forbid the placement of bright orange safety triangles on the … Read more »
Compliance Bits and Pieces for September 16
Here are some recent compliance related stories that caught my attention: How do You Evaluate a Risk Assessment? by Tom Fox What is the amount of risk that your company is willing to accept? Before you even get to this question how does your company assess risk and subsequently evaluate that risk? CEO pushes Reg … Read more »
Investment Adviser Oversight Act of 2011
FINRA is elbowing its way into an oversight role for investment advisers. House Financial Services Committee Chairman Spencer Bachus has introduced the Investment Adviser Oversight Act of 2011. The argument is that the SEC is too overburdened to effectively oversee investment advisors. I find it strange that Congress wants to make the shift. If the … Read more »
Carried Interest and Obama’s American Jobs Act
The tax treatment of carried interest has been eyed as a revenue source off and on for the past few years. It’s back in the sights of the administration in the new American Jobs Act. Subtitle B – Tax Carried Interest in Investment Partnerships as Ordinary Income Section 411 – Partnership Interests Transferred in Connection … Read more »
The Slow Rulemaking on Swaps and Derivatives
One of the strange splits in US financial regulation is that many swap and derivatives are regulated by the Commodities Futures Trading Commission instead of the Securities and Exchange Commission. I think of the CFTC, I think of Trading Places and with the SEC I think of Wall Street. The Commodity Futures Trading Commission has … Read more »
More on the Massachusetts Regulations on Expert Networks
The Massachusetts Secretary of State issued a new regulation that would affect the ability of investment advisors to use expert networks. This was a direct result of Risk Reward Capital Management being based in Massachusetts. Since the management company was registered as an investment adviser in Massachusetts they are subject to examination and enforcement by … Read more »
Compliance Bits and Pieces for September 9
These are some compliance-related stories that recently caught my eye: JP Morgan explains the euro crisis with LEGO/a> by Feliz Salmon The woman with an oversized carrot and her friend in overalls with a shovel represent the Social Democrats and Greens. Anti-Corruption Research Paper Competition Open for Submissions We are asking young scholars from around … Read more »
The SEC Overhaul
On July 11, 2011, the President issued Executive Order 13579, “Regulation and Independent Regulatory Agencies,” which states that independent regulatory agencies should promote the goals set forth in Executive Order 13563 of January 18, 2011 that applies to executive agencies. He is asking the SEC, CFTC and other independent agencies to focus on a regulatory … Read more »
The EU Directive On Alternative Fund Managers Is in Effect
The chaos around the Swiss Franc may be a sign of a coming crisis in the European Union. For private fund managers, a different crisis may be the new European regulatory regimes for private funds. With all of the flux in the United States over the regulation of private funds, it’s been easy to forget … Read more »