Subprime/Credit Crisis Developments

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On 7 May 2009, the Financial Services Global Competitiveness Group (FSGCG), which is co-chaired by the Chancellor, Alistair Darling, and former Citi Chairman, Sir Win Bischoff, produced a report on the future of the UK’s financial services sector. As the FSGCG consists of a number of members representing key stakeholders in the sector, this report reflects the view of the UK’s financial services leaders. …
Read More UK: Report on the Future of the UK Financial Services Sector

We have previously reported on two consultation papers issued by the European Commission on the regulation of credit rating agencies (click here for our earlier post). The consultation process culminated in the publication of draft regulations (the Regulations). On 23 April the European Commission announced that the Regulations had been approved by the European Parliament and the European Council. 

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Read More EU: European Parliament and Council Approve Regulation of Credit Rating Agencies

UK Chancellor of the Exchequer, Alistair Darling, announced in the 2009 Budget measures to address the challenge for businesses as a result of the reduction of trade credit insurance (see our previous blog on recently published guidance governing the trade credit insurance industry by clicking here). 

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Read More UK: Chancellor Announces a ‘Top-Up’ Trade Credit Scheme in April 2009 Budget

As we previously reported here, the National Conference of Insurance Legislators (“NCOIL”) has debated whether credit default swaps (“CDS”) constitute securities or insurance, and the advantages and disadvantages of regulating the CDS market on a state, rather than federal, basis if such swaps constitute insurance. …
Read More National Conference of Insurance Legislators To Draft Credit Default Swaps Legislation

On March 30, 2009, Judge Lawrence M. McKenna granted UBS’s Motion to Dismiss a putative class action complaint filed against it by investors in Auction Rate Securities (ARS).  This dismissal was based on Lead Plaintiffs having availed themselves of UBS’s offer to buy back the securities, as mandated by UBS’s settlement with state and federal regulators. 

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Read More Judge Dismisses ARS Class Action Against UBS Based Upon Regulatory Settlement

Shareholders of Perrigo Company recently filed suit in the United States District Court for the Southern District of New York against Perrigo, a pharmaceutical manufacturer and distributor and seven of its directors and officers, alleging violations of Section 10(b) and Rule 10b-5 of the 1934 Securities Exchange Act.  See Warner v. Perrigo Co., No. 09-CV-2255 (March 11, 2009). 

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Read More Shareholders File Suit in New York Federal Court Against Auction Rate Securities Buyer

A report entitled “2008: Seeking Relief” recently released by Navigant Consulting, Inc. states that 576 federal lawsuits centered around the subprime credit crisis were filed in 2008, nearly double the amount filed in 2007. 

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Read More Navigant Report Finds Nearly Twice as Many Subprime-Related Lawsuits Filed in 2008 as 2007

We reported last week on the publication of the de Larosière Report on financial supervision in the EU (you can see that post by clicking here). The European Commission has now published its own proposals for radical reform of the regulatory and supervisory regime in Europe. 

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Read More European Commission Responds to de Larosière Report

The high-level group on financial supervision in the EU, chaired by Jacques de Larosière, published an initial report recommending ‘repair’ of the oversight of financial services across Europe. In addition to de Larosière, the group is composed of seven senior European figures from the financial services industry and its regulators, including Leszek Balcerowicz, former president of the National Bank of Poland, and Callum McCarthy, former chairman of the UK’s Financial Services Authority. …
Read More De Larosière Report on Financial Supervision in the EU