Category: Hedge Fund Law

Law Opens Financing of Start-Ups to Crowdfunding

Business

On Monday, federal legislation goes into effect to allow small start-ups to ask for equity investments publicly, such as through social media sites or elsewhere on the Internet, without having to register the shares for public trading. On Monday, federal…

SEC Lifts Ban for Hedge Fund to Advertise

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SEC Lifts 80 Year Old Ban for Hedge Fund to Advertise. Hedge funds and other companies seeking private investments will be allowed to advertise publicly for funding under a rule approved on Wednesday by the U.S. Securities and Exchange Commission.…

The Case against ‘Fabulous Fab’

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  SEC trying to turn financial crisis poster boy into sacrificial lamb Next week, Fabrice Tourre goes on trial for securities fraud. Tourre, now 34, is the former Goldman Sachs investment banker who, in 2007, packaged and peddled a synthetic…

FCA Has Ramped Up Scrunity of the Hedge Fund Industry

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The UK’s Finacial Conduct Authority FCA Has Ramped Up Scrunity of the Hedge Fund Industry.
FCA – and the Bank of England’s Prudential Regulation Authority scrutiny of the hedge fund industry and in a growing sign of its reach is also paying more attention to the activities of US hedge funds with operations in the UK.

Chairman/CEO: To Split or Not To Split?

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JPMorgan re-ignites the corporate governance controversy Some saw the issue as silly, others as a turning point in US corporate governance. Should Jamie Dimon give up his Chairmanship of JPMorgan?  For concededly good reasons, America’s best-known banker lost some of his luster this…

Insider Trading Steps Closer to Strict Liability

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Insider Trading Steps Closer to Strict Liability
SEC Sues Investment Banker Richard Bruce Moore Who Just Put 2&2 Together.
In 2010, Richard Bruce Moore, an investment banker at Canadian Imperial Bank of Commerce (“CIBC”), counted the Canadian Pension Plan Investment Board (the “Pension Board”) among his best clients. Through Moore’s efforts, the Pension Board regularly used CIBC to finance its private equity investments.

Short-Swing Profiteers Bill Ackman and Dan Loeb

Poker like Hedge Fund Investing Ackman and Loeb

Billionaire hedge funders play poker over an activist target
At an investor conference last December, hedge fund activist Bill Ackman spent 3-½ hours explaining why Herbalife, the 33-year-old direct marketer of nutritional supplements, was nothing more than a Ponzi scheme whose stock was worthless.

Analyst Find Red Flags In Hedge Funds’ Compliance

Hedge Fund Compliance

Operational due diligence analysts find more red flags in hedge funds’ compliance and regulatory functions than any other area Compliance and regulatory failures are the most common problems identified by operational due diligence (ODD) analysts when they conduct reviews of…

Hedge Funds Need Boards with Brass Balls

Hedge Funds Need Brass Balls

The days of ‘rubber-stamping’ Cayman boards are over If “carried interest” is not enough to fret about, US private equity and hedge fund managers now face the unwelcome prospect of “independent” boards. The model of a couple of professional Cayman…

The Rating Game

Hedge Fund News - Stephen Bornstein

By Stephen Bornstein Ever since AAA-rated subprime mortgage-backed securities (“MBS”) collapsed during the global financial crisis, sharp attention has been focused on the business model of the US credit rating agencies.   At issue is whether those inflated MBS ratings…

Don’t Mess with Me, Argentina -From the Law Desk

Hedge Fund Hottie, HedgeHo Argentina President

By Hedge Fund Lawyer, Stephen Bornstein Paul Singer resorts to privateering to collect on his hedge fund’s sovereign bonds Often described as soft-spoken, mild-mannered and publicity-shy, Paul Singer, the plutocratic founder and head of $21 billion hedge fund Elliott Management,…

Hedge Funds Looking For Lawyers

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[three_fourth last=”no”]…[/three_fourth]Lawyers with Dodd-Frank Act and regulatory expertise are being wooed by private equity firms and hedge funds in need of an in-house compliance team. The Dodd-Frank Wall Street Reform and Consumer Protection Act, passed in 2010, requires private equity…

Can Companies Sin?

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Article by Senior Hedge Fund Attorney Stephen Bornstein The new Archbishop of Canterbury thinks our banks and hedge funds have crossed the line Did our banks and hedge funds bring about the financial crisis of 2008 by engaging in “wild…

Rajat Gupta – Could be Wall Street’s O.J. Simpson

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Gupta’s Appeal Could Blacken His Name Instead of Clearing It Contributed by Hedge Fund Legal Expert  Stephen Bornstein     If he prevails, Rajat Gupta could become Wall Street’s ‘O.J. Simpson’Of all the Wall Street players U.S. attorney Preet Bahara has…

South African Hedge Fund Industry New Rules Proposed

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Hedge fund regulations proposed by South Africa’s treasury and the Financial Services Board – aimed at protecting investors and promoting financial stability. Restricted hedge funds, which are limited to qualified investors, and retail hedge funds “will be subject to some…

More Shady Banker Business- Click here

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Sell-out Uncovered in a Private Equity Buy-out By Stephen Bornstein After thinking about it for almost a year, management of Del Monte Foods Company finally decided in late 2010 to sell the company to a private equity group led by…

SEC Green-Light’s Hedge Fund Advertising

For you my friend, 80% off - Turn key business ;)

SEC proposes new rules to implement JOBS Act provision about hedge fund solicitation and advertising in securities offerings. The Securities and Exchange Commission took a nice stride today in proposing the long awaited “new rules” for General Solicitation of a…

Via Stephen Bornstein’ Hedge Fund Law Blog

Hedge Fund Lawyer Stephen Bornstein, hedge fund, hedge fund lawyer

Zingers from Buffett, Welch and Weill – By Stephen Bornstein Bold ideas to fix Wall Street from three unexpected sources Three of the biggest names on Wall Street have sent shock waves through the financial system with bold and ironic…

European Regulators Plan To Cut Down Hedge Fund Managers Pay

European regulators published draft rules on Thursday to crack down on excessive bonuses for hedge fund managers. The European Securities and Markets Authority (ESMA) said on Thursday such curbs must be extended to managers of alternative investment funds, including hedge…

Dodd- Frank Effect

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The Dodd Frank Effect in Hedge Funds Unions and PE By Steven Brill to Reuters 1. The Dodd-Frank effect: Good, bad or both? Although the Consumer Financial Protection Bureau, the mega-agency created by the Dodd-Frank financial regulatory bill, has only…