Do Private Equity Managers Raise Funds on (Sur)real Returns?

By Niklas Huether December 10, 2019 by renholding

The private equity industry has become the target of calls for more regulation, with critics and academics concerned that net asset values (NAVs) are inflated around periods of fundraising, particularly in the case of low-reputation funds. These calls are predicated …

Cahill Gordon Discusses Glass Lewis and ISS 2020 Voting Guidelines

By Helene R. Banks, Geoffrey E. Liebmann, Ross Sturman, Joseph E. Cho and Tina M. Davis December 10, 2019 by renholding

Both Glass, Lewis & Co. (“Glass Lewis”) and Institutional Shareholder Services Inc. (“ISS”), the leading providers of corporate governance and proxy advisory services, have now published their 2020 proxy voting guidelines. The Glass Lewis guidelines[1] will take effect for …

Long-Run Short Selling

By Joshua Mitts December 9, 2019 by renholding

On December 3, 2019, Japan’s Government Pension Fund (GPIF) announced that it would suspend share lending to short sellers. This is the latest development in a growing global regulatory skepticism of shorting, with Reuters recently reporting that short selling …

Gibson Dunn Discusses EU and U.S. Expectations for Internal Compliance Programs

By Judith Alison Lee, Patrick Doris, Michael Walther, R.L. Pratt and Richard Roeder December 9, 2019 by renholding

The European Union has become more active in addressing EU common foreign and security policy (“CFSP”) objectives with the help of what it calls “restrictive measures,” i.e., EU Financial and Economic sanctions. As indicated in our recent client …

Reaching for Yield and the Diabolic Loop in a Monetary Union

By Sabri Boubaker, Dimitrios Gounopoulos, Duc Khuong Nguyen and Nikos Paltalidis December 6, 2019 by renholding

One of the repercussions of the housing market collapse in the U.S. in 2007 was global anxiety about excess leverage, debt repayment, and overall credit conditions. Risk-pricing levels increased abruptly for highly indebted countries, making new borrowing to refinance debt …

SEC Commissioner Speaks on Protecting Elder Investors

By Elad L. Roisman December 6, 2019 by renholding

Good morning. I am truly happy to join you today at the fall 2019 meeting of the Elder Justice Coordinating Council (“EJCC”). I want to thank U.S. Department of Health and Human Services Secretary [Alex] Azar, Assistant Secretary [Lance] Robertson,

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Does Litigation Risk Make Financial Reports Less Readable?

By Mark Humphery-Jenner, Yun Liu, Vikram K. Nanda, Sabatino Silveri and Minxing Sun December 5, 2019 by renholding

Financial reports can be opaque, complex, and difficult to understand. As far back as 1998, this was the premise behind the SEC’s Plain English Rule: an unsuccessful attempt to encourage firms to write more readable financial reports. In a new …

Sullivan & Cromwell Discusses NYSE Proposal to Expand Permitted Use of Direct Listings

By Sullivan & Cromwell LLP December 5, 2019 by renholding

On November 26, 2019, New York Stock Exchange LLC (“NYSE”) filed notice of a proposed rule change with the Securities and Exchange Commission to modify its listing rules relating to direct listings. The proposed rule change would allow companies to …

Insider Trading and Macroeconomic Risk

By Sandro Romano December 4, 2019 by renholding

In a new article, I use network theory to show that there is a hidden link between insider trading and macroeconomic risk. I suggest that current laws on insider trading increase the level of macroeconomic risk for the economy, and …

SEC’s Director of Investment Management Division Talks Securities Law Developments

By Dalia Blass December 4, 2019 by renholding

Good Morning. Thank you Susan [Olson], and thank you all for the opportunity to come back and update you on the Division’s work.[1]

I recently came across a September Compliance Minute Podcast, titled: Where Have you Gone, Dalia Blass?

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Restructuring Argentina’s Sovereign Debt: Navigating the Legal Labyrinth

By Sebastian Grund December 3, 2019 by renholding

For almost two years, Argentina has been facing a severe economic recession and has not had the ability to access international capital markets. This has been due to several factors, including a general capital flight from emerging markets following the …

Davis Polk Discusses Strengthening UK Merger Control

By Nicholas Spearing, Leonore De Mullewie, Matthew Yeowart, Arthur J. Burke and Ronan P. Hart December 3, 2019 by renholding

The UK operates a voluntary merger control regime[1]. In addition, the European Commission (EC) operates a ‘one-stop shop’ jurisdiction to review the largest and most complex cases on behalf of all EU Member States, including the …

The Fuel that Runs the Corporate Investigation Machine

By Samuel Buell and Jennifer Arlen December 2, 2019 by renholding

The United States pursues more successful corporate criminal enforcement actions against large multi-national firms than any other country, collecting enormous penalties and occupying center stage in the global enforcement arena. U.S. dominance draws its horsepower and its torque from two …

Davis Polk Discusses Recent Delaware Decisions on Director Oversight

By Louis L. Goldberg, Joseph A. Hall, John B. Meade, Byron B. Rooney and Andrew Ditchfield December 2, 2019 by renholding

Two recent Delaware decisions may give ammunition to stockholder plaintiffs seeking to assert claims against directors under a Caremark theory for failing to comply with their oversight obligations. The decisions—Marchand v. Barnhill (“Blue Bell”) and In re …

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The CLS Blue Sky Blog

Columbia Law School's Blog on Corporations and the Capital Markets

December 2019