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Securities Law Commons

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2013

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Articles 91 - 120 of 203

Full-Text Articles in Securities Law

The Modern Corporation Magnified: Managerial Accountability In Financial Services Holding Companies, Anita Krug Mar 2013

The Modern Corporation Magnified: Managerial Accountability In Financial Services Holding Companies, Anita Krug

All Faculty Scholarship

This Article first recalls the primary contours of Adolf Berle and Gardiner Means’s acclaimed observations regarding the separation of ownership and control in the “modern corporation,” as well as their conclusions about the implications of those observations for the doctrine of shareholder primacy. Second, the Article describes how the activities of FSHCs generally differ from what we think corporations do and, certainly, from what Berle and Means conceived of as the purpose of corporations or, indeed, any business enterprise. Third, this Article articulates how those business activities render more acute the problem of the separation of ownership and control that …


Inequities In Corporate And Securities Law: Disabling The Exploitative Chinese Corporation And Charting A Path To International Commercial Accountability, Jonathan P. Schmidt Mar 2013

Inequities In Corporate And Securities Law: Disabling The Exploitative Chinese Corporation And Charting A Path To International Commercial Accountability, Jonathan P. Schmidt

San Diego International Law Journal

This article seeks to illuminate these issues and provide a roadmap for the U.S. federal and state legislatures to come together to protect the U.S. investor from the type of accounting fraud and stock misinformation that was the impetus behind enacting the Sarbanes-Oxley Act of 2002. First, this article will discuss the legal backdrop and legislative policy behind U.S. laws such as SOX and its enforcement mechanisms, and the ability for shareholders to bring securities class action derivative actions for financial fraud. This article will also discuss trade secrets laws, criminal extradition treaties, international enforcement of judgments, and elucidate the …


Please Be Delicate With My Permanent Record: The Pendulum Inches Towards Absolute Privilege In Merkam V. Wachovia, Joseph W. Catuzzi Mar 2013

Please Be Delicate With My Permanent Record: The Pendulum Inches Towards Absolute Privilege In Merkam V. Wachovia, Joseph W. Catuzzi

Villanova Law Review (1956 - )

No abstract provided.


Advising The Individual Investor: Comparing The Federal Regulation Of Investment Advisers, Banks, And Broker-Dealers, Alan M. Ahart Feb 2013

Advising The Individual Investor: Comparing The Federal Regulation Of Investment Advisers, Banks, And Broker-Dealers, Alan M. Ahart

Pepperdine Law Review

No abstract provided.


Transamerica Mortgage Advisors, Inc. V. Lewis: An Analysis Of The Supreme Court's Definition Of An Implied Right Of Action , Nancy E. Underwood Feb 2013

Transamerica Mortgage Advisors, Inc. V. Lewis: An Analysis Of The Supreme Court's Definition Of An Implied Right Of Action , Nancy E. Underwood

Pepperdine Law Review

No abstract provided.


Alternatives For Small Business Raising Capital Under The Securities Act Of 1933, David H. Barber Feb 2013

Alternatives For Small Business Raising Capital Under The Securities Act Of 1933, David H. Barber

Pepperdine Law Review

The problems encountered by the business community in raising capital for new or small businesses has spurned implementation of responsive policy and regulations by the Securities and Exchange Commission. As a result of input from a series of nationwide small business hearings, the S.E.C. has recently demonstrated its commitment to aiding capital raising needs. This was accomplished by creating an Office of Small Business Policy to respond to the effects of major new changes to the Securities Act of 1933 which seek to facilitate the process of capitalization of small business. Professor David H. Barber, of Brigham Young University's J. …


Merrill Lynch, Pierce, Fenner & Smith, Inc. V. Curran: Establishing An Implied Private Right Of Action Under The Commodity Exchange Act, Howard E. Hamann Feb 2013

Merrill Lynch, Pierce, Fenner & Smith, Inc. V. Curran: Establishing An Implied Private Right Of Action Under The Commodity Exchange Act, Howard E. Hamann

Pepperdine Law Review

In the case of Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Curran, the United States Supreme Court held that there is an implied private right of action under the Commodity Exchange Act, as amended. As a result of this holding, a private party may maintain an action for damages caused by a violation of the Commodity Exchange Act. In this article, the author examines the Supreme Court's analysis and explores the future impact of the decision in light of the role the judiciary has in legislative matters.


The Federal Sentencing Guidelines’ Abuse Of Trust Enhancement: An Argument For The Professional Discretion Approach, Adam Denver Griffin Feb 2013

The Federal Sentencing Guidelines’ Abuse Of Trust Enhancement: An Argument For The Professional Discretion Approach, Adam Denver Griffin

Florida Law Review

This Note analyzes the prevalent judicial approaches to § 3B1.3 and explains how some courts erred by advancing the hybrid approach after the 1993 Amendment to § 3B1.3. Part II examines the role of trust in guideline sentencing. Part III discusses the policy behind the Guidelines, including the continuing application of the Guidelines despite the Supreme Court’s 2005 United States v. Booker decision. Part IV explains different approaches employed by the circuit courts to define a position of trust. Part V highlights the effect of the approach by contrasting the Third Circuit’s hybrid with the Eleventh Circuit’s professional discretion approach. …


The Effect Of The Dodd-Frank Act On Arbitration Agreements: A Proposal For Consumer Choice, Catherine Moore Feb 2013

The Effect Of The Dodd-Frank Act On Arbitration Agreements: A Proposal For Consumer Choice, Catherine Moore

Pepperdine Dispute Resolution Law Journal

The article presents information on the security in the markets and the regulatory reform as passed by the U.S. Congress. The impact of recession on the American economy and the destruction of public and private wealth are considered. The enactment of Dodd Frank Wall Street Reform and Consumer Protection Act and the executive compensations are discussed. The case law related to arbitration of disputes related to security and the need of law reform is also discussed.


What Finra Can Learn From Major League Baseball, Ben Einbinder Feb 2013

What Finra Can Learn From Major League Baseball, Ben Einbinder

Pepperdine Dispute Resolution Law Journal

The article presents information on the arbitration system formed by the Financial Industry Regulatory Authority (FINRA) with respect to the arbitration under the employment disputes in the financial industry. The arbitration models created by FINRA examine the disputes in the securities industry. Information on the impact of the Major League Baseball and its works on the employment disputes are also presented.


Disclosure Of Payment Under The U.S. Dodd-Frank Act: The ‘Resource Extraction Rule”, Celia R. Taylor Feb 2013

Disclosure Of Payment Under The U.S. Dodd-Frank Act: The ‘Resource Extraction Rule”, Celia R. Taylor

Sturm College of Law: Faculty Scholarship

Tucked into the Dodd-Frank Wall Street Reform and Consumer Protection Act are several provisions having nothing to do with financial regulation. One of these 'miscellaneous' provisions required the US Securities and Exchange Commission (SEC) to implement rules requiring publicly traded resource extractive industry companies to disclose payments made to foreign governments. In August 201Z the SEC adopted final rules to achieve that purpose. InOctober 2012, the US Chamber of Commerce, as part ofa coalition of business and other interests, filed suit to block the implementation of the rules. This article explains the contents of the resource extraction rule and the …


When Will It Finally End: The Effectiveness Of The Rule 10b-5 Private Action As A Fraud-Deterrence Mechanism Post-Janus, Justin Marocco Feb 2013

When Will It Finally End: The Effectiveness Of The Rule 10b-5 Private Action As A Fraud-Deterrence Mechanism Post-Janus, Justin Marocco

Louisiana Law Review

The article discusses the Rule 10b-5 as a private method to limit the fraud-deterrence in the security for sales or purchase under the U.S. Securities Exchange Act. It mentions that the U.S. Supreme Court rejected the rule 10b-5 private actions liability for aiding and abetting. It states that the mutual fund company Janus Distribution LLC is responsible for the limitation of prevention of fraud because of escaping liability to the corporate officers for their unattributed misstatements.


Securities Class Actions And Bankrupt Companies, James J. Park Feb 2013

Securities Class Actions And Bankrupt Companies, James J. Park

Michigan Law Review

Securities class actions are often criticized as wasteful strike suits that target temporary fluctuations in the stock prices of otherwise healthy companies. The securities class actions brought by investors of Enron and WorldCom, companies that fell into bankruptcy in the wake of fraud, resulted in the recovery of billions of dollars in permanent shareholder losses and provide a powerful counterexample to this critique. An issuer's bankruptcy may affect how judges and parties perceive securities class actions and their merits, yet little is known about the subset of cases where the company is bankrupt. This is the first extensive empirical study …


The Tips Are For The Taking: The Supreme Court Limits Third Party Liability In Dirks V. Securities And Exchange Commission, W. Steven Shayer Jan 2013

The Tips Are For The Taking: The Supreme Court Limits Third Party Liability In Dirks V. Securities And Exchange Commission, W. Steven Shayer

Pepperdine Law Review

No abstract provided.


Boiler Room Fraud: An Operational Plan Utilizing The Injunction Against Fraud Pursuant To 18 U.S.C. §1345 , Robert M. Twiss Jan 2013

Boiler Room Fraud: An Operational Plan Utilizing The Injunction Against Fraud Pursuant To 18 U.S.C. §1345 , Robert M. Twiss

Pepperdine Law Review

No abstract provided.


The Unjustified Furor Over Securities Arbitration, Gilbert R. Serota Jan 2013

The Unjustified Furor Over Securities Arbitration, Gilbert R. Serota

Pepperdine Law Review

No abstract provided.


Corporation Code Sections 309 And 1203: California Redefines Directors' Duties Towards Shareholders, Ernest F. Batenga, Mark Willis Jan 2013

Corporation Code Sections 309 And 1203: California Redefines Directors' Duties Towards Shareholders, Ernest F. Batenga, Mark Willis

Pepperdine Law Review

No abstract provided.


The New Shareholder Power, John C. Carter Jan 2013

The New Shareholder Power, John C. Carter

Pepperdine Law Review

No abstract provided.


A Note On Individual Recovery In Derivative Suits, Richard A. Booth Jan 2013

A Note On Individual Recovery In Derivative Suits, Richard A. Booth

Pepperdine Law Review

No abstract provided.


The Supreme Court And The Shareholder Litigant: Basic, Inc. V. Levinson In Context, Jayne W. Barnard Jan 2013

The Supreme Court And The Shareholder Litigant: Basic, Inc. V. Levinson In Context, Jayne W. Barnard

Pepperdine Law Review

No abstract provided.


The "In Connection With" Requirement Of Rule 10b-5, C. Edward Fletcher Iii Jan 2013

The "In Connection With" Requirement Of Rule 10b-5, C. Edward Fletcher Iii

Pepperdine Law Review

No abstract provided.


Decisional Integrity And The Business Judgment Rule: A Theory, Alfred Dennis Mathewson Jan 2013

Decisional Integrity And The Business Judgment Rule: A Theory, Alfred Dennis Mathewson

Pepperdine Law Review

No abstract provided.


Scandal Enforcement At The Sec: The Arc Of The Option Backdating Investigations, Stephen Choi, Adam C. Pritchard, Anat C. Wiechman Jan 2013

Scandal Enforcement At The Sec: The Arc Of The Option Backdating Investigations, Stephen Choi, Adam C. Pritchard, Anat C. Wiechman

Law & Economics Working Papers

We study the SEC’s allocation of enforcement resources in the wake of a salient public scandal. We focus on the SEC’s investigations of option backdating in the wake of numerous media articles on the practice of backdating. We find that the SEC shifted its mix of investigations significantly toward backdating investigations and away from investigations involving other accounting issues. We test the hypothesis that SEC pursued more marginal investigations into backdating at the expense of pursuing more egregious accounting issues. Our event study of stock market reactions to the initial disclosure of backdating investigations shows that those reactions declined over …


Investment Company As Instrument: The Limitations Of The Corporate Governance Regulatory Paradigm, Anita Krug Jan 2013

Investment Company As Instrument: The Limitations Of The Corporate Governance Regulatory Paradigm, Anita Krug

All Faculty Scholarship

U.S. regulation of public investment companies (such as mutual funds) is based on a notion that, from a governance perspective, investment companies are simply another type of business enterprise, not substantially different from companies that produce goods or provide (noninvestment) services. In other words, investment company regulation is founded on what this Article calls a “corporate governance paradigm,” in that it provides a significant regulatory role for boards of directors, as the traditional governance mechanism in business enterprises, and is “entity centric,” focusing on intraentity relationships to the exclusion of superentity ones. This Article argues that corporate governance norms, which …


Rethinking U.S. Investment Adviser Regulation, Anita Krug Jan 2013

Rethinking U.S. Investment Adviser Regulation, Anita Krug

All Faculty Scholarship

(Excerpt)Now, in the aftermath of Dodd-Frank's enactment and the SEC's associated bout of rulemaking, one might think that the Advisers Act's regulatory regime is a workable and effective one, equipped to address - and address efficiently - the investor-protection risks that the twenty-first-century investment adviser industry produces. In fact, however, Dodd-Frank did not touch - and, indeed, Dodd-Frank's crafters indicated no awareness of - many of the Advisers Act's longstanding troubles. Additionally, the changes Dodd-Frank brought about have their own considerable deficiencies. As this Article contends, the U.S. investment adviser regulatory regime, now seventy-four years old, is in need of …


The Cost Of Securities Fraud, Urska Velikonja Jan 2013

The Cost Of Securities Fraud, Urska Velikonja

Faculty Scholarship

Under the dominant account, securities fraud by public firms harms the firms’ shareholders and, more generally, capital markets. Recent financial legislation—the JOBS Act and the Dodd-Frank Act—as well as the influential 2011 D.C. Circuit decision in Business Roundtable v. SEC reinforce that same worldview. This Article contends that the account is wrong. Misreporting distorts economic decision-making by all firms, both those committing fraud and not. False information, coupled with efforts to hide fraud and avoid detection, impairs risk assessment by providers of human and financial capital, suppliers and customers, and thus misdirects capital and labor to lower-value projects. If fraud …


Punishing Bad Brokers: Self-Regulation And Finra Sanctions, Barbara Black Jan 2013

Punishing Bad Brokers: Self-Regulation And Finra Sanctions, Barbara Black

Faculty Articles and Other Publications

Regulation of the broker-dealer industry by a self-regulatory organization (SRO) is an integral part of the federal regulatory scheme under the Securities Exchange Act of 1934 (the Exchange Act). As a result, the Financial Industry Regulatory Authority (FINRA), the sole SRO for U.S. broker-dealers, plays an important role in protecting investors, especially retail investors, and bolstering investor confidence in the securities industry and capital markets. In 2012 FINRA brought 1,541 disciplinary actions against registered individuals and firms, levied fines totaling more than $68 million and ordered restitution of $34 million. It expelled 30 firms, barred 294 individuals and suspended another …


Curbing Broker-Dealers' Abusive Sales Practices: Does Professor Jensen's Integrity Framework Offer A Better Approach?, Barbara Black Jan 2013

Curbing Broker-Dealers' Abusive Sales Practices: Does Professor Jensen's Integrity Framework Offer A Better Approach?, Barbara Black

Faculty Articles and Other Publications

Retail investors, particularly senior citizens, need competent and careful investment advice more than ever before. Many must rely on the services provided by investment advice providers, including broker-dealers. Regulators have sounded the alarm about sales of risky, complex products to retail customers in search of better returns, especially senior citizens and retirees. Both the SEC and FINRA have identified abusive broker-dealer sales practices as priorities in their examinations of broker-dealers and have brought numerous enforcement actions against broker-dealers for sales practices that harm retail investors. These enforcement actions frequently allege both failures of the firms’ due diligence processes to assure …


Criminal Securities Fraud And The Lower Materiality Standard, Wendy Gerwick Couture Jan 2013

Criminal Securities Fraud And The Lower Materiality Standard, Wendy Gerwick Couture

Articles

No abstract provided.


Behavioral Economics And Investor Protection: Reasonable Investors, Efficient Markets, Barbara Black Jan 2013

Behavioral Economics And Investor Protection: Reasonable Investors, Efficient Markets, Barbara Black

Faculty Articles and Other Publications

The judicial view of a “reasonable investor” plays an important role in federal securities regulation, and courts express great confidence in the reasonable investor’s cognitive abilities. Behavioral economists, by contrast, do not observe real people investing in today’s markets behaving as the reasonable investors that federal securities law expects them to be. Similarly, the efficient market hypothesis (EMH) has exerted a powerful influence in securities regulation, although empirical evidence calls into question some of the basic assumptions underlying EMH. Unfortunately, to date, courts have only acknowledged the discrepancy between legal theory and behavioral economics in one situation, class certification of …