Subprime/Credit Crisis Developments

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We have reported previously on the UK Financial Services Authority (FSA)’s short selling disclosure rules, most recently as consultation on its implementation of the UK’s Financial Services Act 2010 (click here to read our post). In that consultation, the FSA noted that the Committee of European Securities Regulators (CESR) was consulting on a Pan-European regime. …
Read More Europe: Committee of European Securities Regulators Publishes Model Short Selling Disclosure Regime

The White House proposed legislation to Congress last week that would require investment advisors to private equity, venture capital and hedge funds with more than $30 million in assets under management to register with the Securities and Exchange Commission (SEC).  The proposed legislation marks the most extensive effort to date to register and oversee the private equity, venture capital and hedge fund markets. 

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Read More White House Proposes SEC Registration and Oversight of Private Equity, Venture Capital and Hedge Fund Advisors

On July 1, 2009, the Department of Justice announced that it had entered into a deferred prosecution agreement with homebuilder Beazer Homes USA (“Beazer’) in connection with its alleged mortgage and accounting fraud. 

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Read More Beazer Homes Enters Deferred Prosecution Agreement Regarding its Subprime Mortgage Origination Practices

We have previously reported on the UK Financial Services Authority’s (FSA) temporary ban on the short selling of stocks in the UK financial sector (which has now expired) and the ongoing disclosure requirements in relation to new and existing short positions. 

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Read More UK: FSA Extends Short Selling Disclosure Requirements

On June 11, 2009, Ashland Inc., the maker of Valvoline Motor Oil, filed a complaint against Morgan Stanley in the U.S. District Court for the Southern District of New York, based upon Morgan Stanley’s alleged sale of Auction Rate Securities (“ARS”) to Ashland. …
Read More ARS Suit by Valvoline Maker Alleges Morgan Stanley Fraudulently Misrepresented Securities

On June 4, 2009, the SEC filed a complaint against several former Countrywide executives alleging securities fraud. In its complaint, the SEC alleges that former Countrywide CEO Angelo Mozilo, former COO and president David Sambol and former CFO Eric Sieracki violated Section 10(b) of the Securities Exchange Act by deliberately misleading investors about the significant credit risks being taken by Countrywide in its efforts to maintain and increase the company’s market share. 

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Read More SEC Charges Former Countrywide Executives with Securities Fraud