Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Monday, August 20, 2007

ALJ Dismisses SEC Charges Against Former Amex CEO

An administrative law judge dismissed the SEC's charges against Salvatore F. Sodano, the chair and CEO of Amex from 1999-2005, that he violated SEA section 19(h)(4) by failing to enforce compliance with the Exchange Act, its rules and Amex rules.  The SEC specifically alleged the Amex's failure to enforce adequately its option order handling rules.  The ALJ held that section 19(h)(4) is unambiguous and allows the SEC to bring actions to censure only current officers or directors of a SRO.  In re Salvatore F. Sodano.

August 20, 2007 in SEC Action | Permalink | Comments (0) | TrackBack (0)

Defendant in KPMG Tax Shelter Case Pleads Guilty

David Amir Makov, one of the non-KPMG employees named as a defendant in the  abusive tax shelter prosecution, agreed to plead guilty and cooperate with the government against the remaining defendants.  Makov was investment adviser at Presidio Advisory Services, which marketed the tax shelters known as Blips to wealthy individuals.  NYTimes, Adviser to Plead Guilty in KPMG Tax Shelter Case.

August 20, 2007 in News Stories | Permalink | Comments (0) | TrackBack (0)

Tribune Shareholders Vote Tomorrow on LBO

Shareholders for the Tribune Company vote tomorrow on the LBO for the company, amid doubts that the deal will close.  Last spring the company and Samm Zell announced the $8.2 billion takeover where shareholders would receive $34 per share.  Since then the fortunes of the newspaper chain have fallen, and the costs of borrowing have risen.  The parties say the deal is on track.  The company is expected to sell assets, including the Chicago Cubs, to pay for the deal.  NYTimes, How Solid Is the Deal for Tribune Company?

August 20, 2007 in News Stories | Permalink | Comments (0) | TrackBack (0)

Market Crash in October?

In a lead story, the Wall St. Journal looks at the market crashes of 1987 and 1998 and reminds us of similarities with the current situation.  Both in 1987 and 1998, stocks fell in the summer months, then quieted down in September, followed by market plunges in October.  Another striking similarity is the use of computer-generated programs to make transactions, based on models that ultimately did not work as expected.  So will we have a crash in October?  Read it and judge for yourself.  WSJ, Lessons of Past May Offer Clues To Market's Fate.

August 20, 2007 in News Stories | Permalink | Comments (0) | TrackBack (0)