Senator Seeks Additional Regulation of Equity Swaps

Senator Charles Schumer (D-NY) called on the SEC to clarify the treatment of equity swaps in contests for corporate control.  A federal district court recently held, in CSX Corp. v. The Children's Investment Fund, that the fund did not properly disclose its holdings in equity swaps in its campaign to take control of the CSX board, but did not issue an injunction.  WSJ, Schumer Pressures SEC On Equity-Swap Rules.