Securities Law Updates

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Matrixx Initiatives, Inc., et al. v. Siracusano: Securities Plaintiffs Can Use Inferences to Show Materiality and Scienter at the Pleading Stages

By Josh Lawler of Zuber & Taillieu and Joel B. Ginsberg

The United States Supreme Court has ruled that in securities cases under §10(b) and Rule 10b–5 the requirement of the materiality of a defendant’s misrepresentations cannot be reduced to a bright-line rule. Facts giving rise to a strong inference that a defendant acted with the required state of mind are… More...

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Amendment to Wall Street Reform Bill Seeks to Protect Consumers from High Credit Card Rates

Interstate Lending Amendment to the Restoring Financial Stability Act of 2010  |  S.____  |  5/12/2010

A bipartisan group of legislators, namely U.S. Sens. Sherrod Brown, Sheldon Whitehouse (D-RI) and Bernie Sanders (I-VT), have urged support for the Interstate Lending Amendment to the Wall Street reform bill (“Restoring American Financial Stability Act of 2010,” S. 3217). More...

Amendment Filed to Strengthen Rules on Managers of Hedge Funds, Private Equity Funds, and Venture Capital Funds

Senator Reed’s Amendment to the Restoring Financial Stability Act of 2010  |  S.____  |  5/10/2010

In an effort to protect taxpayers, investors, and the U.S. economy, U.S. Senator Jack Reed (D-RI) has introduced an amendment to the Wall Street reform bill that would increase transparency, close existing loopholes, and require all investment pools, including hedge funds, private equity funds, and venture capital funds, to register with the Securities and Exchange Commission (SEC). More...

New Bill Ensures Banks Don’t Become ‘Too Big to Fail;” Have Resources to Cover their Losses

SAFE Banking Act of 2010  |  S. 3241  |  4/21/2010

U.S. Sens. Sherrod Brown (D-OH) Ted Kaufman (D-DE), Robert P. Casey (D-PA), Sheldon Whitehouse (D-RI), and Tom Harkin (D-IA) have sponsored a new legislation that would place reasonable caps on the size of financial institutions. More...

Amendments to Financial Reform Bill Raises Broker-Dealers’ Fiduciary Duty to Avoid Conflict of Interest in Investments

Sen. Specter’s Amendment to the Restoring American Financial Stability Act of 2010  |  S._____  |  5/5/2010

Senator Arlen Specter (D-Pa.) has introduced two amendments to the Senate’s financial reform bill (“Restoring American Financial Stability Act of 2010,” S. 3217) which address several issues that contributed to the financial crisis of 2008. More...

Proposed Legislation to Repeal Increased Reporting Requirement Imposed under New Health Care Law

Small Business Paperwork Mandate Elimination Act  |  H.R. 5141  |  4/26/2010

The Small Business Paperwork Mandate Elimination Act, introduced by Rep. Daniel E. Lungren, R-Calif.,will repeal section 9006 of the newly enacted health care law known as the Patient Protection and Affordable Care Act (P.L. 111-148) . More...

Bipartisan Bill Grants Improved Relief to Ponzi Scheme Victims Through Insurance Coverage

Ponzi Scheme Investor Protection Act  |  H.R. 5032  |  4/15/2010

The Ponzi Scheme Investor Protection Act, H.R. 5032, would increase the number of Ponzi scheme victims eligible for insurance payments by imposing new requirements on the Securities Investor Protection Corporation (“SIPC”), which Congress created in 1970 to recover assets investors lose through failed brokerage firms. More...

California Legislation Considers Investment Placements Agents Dealing with CALPERS as Lobbyists

California State Assembly Bill 1743  |  AB 1743  |  2/8/2010

This legislation will require placement agents that do business with the California Public Employees’ Retirement System (“CalPERS “) and California State Teachers’ Retirement System (“CalSTRS”) to conform to the Political Reform Act of 1974 and register with the Secretary of State as lobbyists. More...

Securities Legislation Restricts Banks and Large Financial Companies from Making High-Risk Bets

Protect our Recovery through Oversight of Proprietary Trading Act  |  S. 3098  |  3/10/2010

The Protect our Recovery through Oversight of Proprietary Trading Act, or PROP Trading Act, helps prevent taxpayer bailouts of financial firms by limiting high-risk speculation, also known as proprietary trading. More...

Senate Bill Targets Big Bonuses Paid by TARP Fund Recipients

S. 2994  |  2/4/2010

U.S. Senators Jim Webb (D-VA) and Barbara Boxer (D-CA) have introduced the Taxpayer Fairness Act, a legislation that would impose a 50 percent tax on excessive bonuses paid by Wall Street banks and other firms that benefited from billions of taxpayer dollars in 2009. More...

Sweeping Financial Reform Package Pushed in Senate

Restoring American Financial Stability Act of 2010  |  S. ____  |  3/17/2010

Senate Banking Committee Chairman Christopher Dodd, D-Conn., has pushed for a sweeping financial reform package that includes the creation of separate agency watch dogs to oversee consumer protection, financial entities, insurance companies, and credit ratings. More...

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Companies Mentioned

Securities Law

The following companies are mentioned in Securities Law Updates:

Securities and Exchange Commission

Harris Associates, L.P.

Banc of America Securities LLC

Citicorp USA, Inc.

The Public Employees’ Retirement System of Mississippi

Morgan Stanley & Co., Inc.

Jan Charles Finance S.A.

Park East, Inc.

CIBC World Markets Corp.

Citigroup Inc.

Barclays Capital Inc.

Citigroup Global Markets, Inc.

California Department of Corporations

The Royal Bank of Scotland plc

RiverSource Investments, LLC

Harris Nesbitt Corp.

Consolidated Management Group, LLC

The Bank of Nova Scotia

Asset Management Holding AG

Deutsche Bank

Toronto Dominion Texas, LLC f.k.a. Toronto Dominion Texas, Inc.

Alex Brown, Inc.

Tellabs, Inc.

Deutsche Bank Securities, Inc.

Mizuho International PLC

SG Cowen Securities Corp.

Makor Issues & Rights, Ltd.

ABN AMRO Inc.

Lydia Capital, LLC

Suntrust Capital Markets, Inc.

Tribune Company

Fleet Securities, Inc. n.k.a. Bank of America, N.A.

City of Philadelphia Board of Pensions and Retirement

The Bank of New York Company, Inc.

Staples, Inc.

CIBC, Inc.

Citibank, N.A.

Metal Management, Inc.

European Metal Recycling, Ltd.

Salomon Smith Barney Inc. n.k.a. Citigroup Global Markets, Inc.

Calyon Securities (USA), Inc. f.k.a. Credit Lyonnais Securities (USA) Inc.

Calyon New York Branch (successor by operation of law to Credit Lyonnais New York Branch)

Salomon Smith Barney, Inc.

JPMorgan Chase & Co.

Dynex Capital Inc.

Citigroup, Inc.

JPMorgan Securities Inc.

Merit Securities Corp.

Scotia Capital (USA), Inc.,

Teamsters Local 445 Freight Division Pension Fund

Additional Resources

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