July 2, 2010

Third Time Not a Charm: Senate Fails Again to Move Carried Interest Legislation

Here is news from Weil Gotshal:

On June 24th, the Senate failed for a third time to pass a procedural vote which would have sent the proposed carried interest legislation (H.R. 4213) to the Senate for a full vote on the bill. Senate Majority Leader Harry Reid (D-Nev.) has announced that the Senate is moving on to other matters. Although no further action is currently pending in the Senate on the proposed carried interest legislation, it is possible (and perhaps likely) that the legislation will be re-introduced into the Senate in the not too distant future.

NYSE Regulation Transfers Its Regulatory Authority to FINRA

Effective June 14th, NYSE Regulation transferred its market surveillance and enforcement functions to FINRA. In NYSE Regulation Information Memo 10-26, the NYSE provides guidance on the effect of the transfer on existing subjects of NYSE Regulation investigations and parties to disciplinary proceedings before the NYSE Hearing Board.

“Standing Committee” Approves Major Changes to Bankruptcy Disclosure Rule

Here is news, as excerpted from this Davis Polk memo:

On June 15th, significant amendments to Bankruptcy Rule 2019, which governs the disclosure of claims and interests held by members of certain representative entities and the parties they represent in Chapter 11 cases, cleared an important hurdle when the amendments were approved by the Committee on Rules of Practice and Procedure of the Judicial Conference, commonly known as the Standing Committee. The proposed changes to Rule 2019 (“Proposed Rule 2019”) considerably expand the scope of disclosure required, broaden the types of economic interests that must be disclosed (to include, among other things, derivatives) and clarify which groups, committees and other entities must publicly disclose those economic interests in order to actively participate in a bankruptcy case.

The Standing Committee will present Proposed Rule 2019 to the full Judicial Conference for consideration at its September 2010 meeting. If the Judicial Conference approves the changes, it will then present Proposed Rule 2019 to the Supreme Court, which will meet in April 2011 to consider the amendments, and finally, absent a Congressional veto, the proposed changes will become effective on December 1, 2011.

– Broc Romanek