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October 13, 2011
Eleven Year Sentence for Insider Trading
Today, I can tell my corporate governance class that insider trading does not pay. Galleon Group's Raj Rajaratnam has been sentenced to 11 years in prison. This is one of the longest prison sentences for insider trading. Prosecutors called him “the modern face of illegal insider trading.”
Link: http://www.businessweek.com/news/2011-10-13/raj-rajaratnam-gets-11-year-prison-term-for-insider-trading.html
(ag) Oct. 13, 2011, in Securities Law
October 13, 2011 in Securities Law | Permalink | Comments (3) | TrackBack
European Banks & Capital
Watching the European debt crisis and the need for bank recapitalization throughout the euro zone with bated breath for its impact on the global economy and U.S. banks:
The International Monetary Fund (IMF) is saying that European Banks need capital infusions totaling up to $200 Million Euros.
But how should that recapitalization be accomplished?
France would like to see more reliance on the euro zone's 440 billion euro rescue fund, the European Financial Stability Fund (EFSF).
Germany prefers that banks recapitalize by raising funds in the private capital markets or, for banks that are unable to use that approach, for national governments to address their banks' exposure to sovereign debt.
A key European Union summit meeting in Brussels to address the euro zone debt crisis has been delayed until October 23, 2011.
On October 12, 2011, European Commission President José Manuel Barroso called for a comprehensive program of banking recapitalization.
On October 11, 2011, French foreign minister Alain Juppé announced that French banks would be expected to achieve capital buffers of 9 percent of assets.
The European Banking Authority is currently reviewing the results of stress tests conducted in July.
The new review takes account of the current market value of Greek and other sovereign debt. The likely result will be to require recapitalization in which banks would submit recapitalization proposals within three months and accomplish the plans within an additional three months. Undercapitalized banks would first seek to raise private capital, with recourse to aid from their national governments should that prove insufficient. Tapping the European Financial Stability Fund (EFSF) should be last.
Key links:
"European Banks Face Deadlines to Raise Capital Levels": http://www.nytimes.com/2011/10/14/business/global/european-banks-face-deadline-to-raise-capital-levels.html?ref=business
"IMF's Borges: Europe's banks need up to 200 billion euros": http://www.msnbc.msn.com/id/44786650#.TpeJ4t483q8
"Europe Delays Meeting on Debt Crisis Actions": http://www.nytimes.com/2011/10/11/business/global/eu-delays-high-level-meeting.html
(ag) Oct. 13, 2011, in Capital, Global Markets
October 13, 2011 in Capital, Global Markets | Permalink | Comments (0) | TrackBack
October 2, 2011
Listen In to Live Streaming for Secondary Mortgage Market Symposium
Broadcast begins at 8:15 A.M. Central Time on Monday, October 3, 2011, from the Hamline University School of Law (Klas Center on the Hamline University campus). Panelists present a broad spectrum of perspectives: Large and small banks, practicing lawyers, law professors, consumer advocates, trade association representatives, state and federal regulators. Expect lively debate!
Gary Stern, former President of the Minneapolis Federal Reserve Bank, speaks at lunch on the "Too Big to Fail" aspect of Fannie Mae and Freddie Mac.
URL for broadcast: http://law.hamline.edu/mortgagereform.html
(ag) Oct. 2, 2011, in GSEs/Fannie Mae and Freddie Mac
October 2, 2011 in Fannie Mae and Freddie Mac | Permalink | Comments (0) | TrackBack
