October 29, 2014

Our New “SEC Enforcement Handbook”

Spanking brand new. By popular demand, this comprehensive “SEC Enforcement Handbook” covers a topic that many have requested – what to do if your company – or someone working there – is investigated by the SEC. This one is a real gem – 31 pages of guidance. For example, the first section is entitled “First Steps for Responding to an Enforcement Investigation.” There is also a section about disclosure obligations relating to SEC enforcement actions…

SEC Commissioners: “Bad Actor” Waiver Battle Grows With Deadlock

With Chair White recused, it appears that the SEC Commissioners are stuck in a 2-to-2 deadlock over the latest in the “bad actor” waiver drama, this one over the ability of BofA to continue certain activities. Here’s a WSJ article – and a Bloomberg article. Here’s an excerpt from the Bloomberg article:

At the SEC, there are three main penalties that banks seek waivers for when they settle cases, with the harshest a ban on managing mutual funds. Another prevents banks from raising money for private companies. The third, and most minor, takes away a privilege that allows a firm to issue its own shares or bonds without SEC approval.

For Bank of America, the biggest hold-up is over the waiver that will allow the bank to continue seeking investors for private firms, such as technology companies that haven’t yet gone public and hedge funds, the people said. “It seems to me it would be important for them to have that waiver,” said Richard A. Kline, a law partner at Goodwin Procter LLP in Menlo Park, California. When fast-growing companies are seeking to raise money from institutions, “there are often banks that will lead some of those private placements,” he said.

Cap’n Cashbags: Time to Grant Stock Options

In this 20-second video, Cap’n Cashbags – a CEO – is hoping to get his mega-grant of stock options soon:

– Broc Romanek