Category Archives: law

Fund of Funds Indemnification Clause of the Day

A prescient bit of CYA was inserted into the fund prospectus for Kingate Global, a Madoff feeder fund: Kingate warned in its fund prospectus “there was always the risk that the assets with the investment adviser could be misappropriated”. “In … Continue reading

Posted in fraud, law | Comments Off

Civil Society: Falling Apart

Yesterday, the idiot was Marc Dreier; today, it’s Rod Blagojevich. Both of them powerful men near the very top of their professions; both of them sworn to uphold the law; both of them resorting to the kind of desperate criminality … Continue reading

Posted in law, Politics | Comments Off

Good News for Monolines Wanting to Settle their CDO Obligations

Whenever a debt issuer runs into distress, it’s a safe bet that there will be legal tussles between holders of junior and senior notes. CDOs are no exception, as Aline van Duyn reports today in the FT. But it turns … Continue reading

Posted in bonds and loans, insurance, law | Comments Off

Legalese Datapoint of the Day

The word count for Marc Lefar’s new employment agreement with Vonage? 18,418. The document does say that Lefar will receive up to $50,000 in reimbursement for "reasonable counsel fees incurred in connection with the negotiation and documentation of this Agreement". … Continue reading

Posted in law | Comments Off

Countrywide: California Piles On

Well, that didn’t take long. California attorney general Jerry Brown (yes, that Jerry Brown) has now joined Illinois in deciding to sue Countrywide. Brown’s rhetorical powers have not deserted him: “Countrywide exploited the American dream of homeownership and then sold … Continue reading

Posted in housing, law | Comments Off

Canadian Law: No Friend to LBOs

The news out of Quebec today really is quite stunning: a court has held that bondholders in Canada can effectively block a leveraged buy-out if their bonds will be downgraded to junk (as most are, in such situations). Steven Davidoff … Continue reading

Posted in bonds and loans, law | Comments Off

Why is Insider Trading Illegal?

The meme of the day, as admirably summed up by Paul Murphy, is the question of why exactly insider trading is illegal, and whether it should be. I seem to recall a trenchant column by Holman Jenkins in the WSJ … Continue reading

Posted in law, stocks | 1 Comment

When States Pass Laws the Banks Don’t Like

In many countries there aren’t any long-term mortgages, either because local law makes it difficult to foreclose on a house, or else because of the very real risk that local laws will change and make it difficult to foreclose on … Continue reading

Posted in law, Politics | Comments Off

How Important is it to Jail Insider Traders?

An interesting discussion about regulators with teeth cropped up during John Gapper’s panel on financial centers. Gapper noted that the SEC was much better at jailing white-collar criminals than any of London’s financial regulators, to which Guy Saxton, the CEO … Continue reading

Posted in law, milken 2008 | Comments Off

The Snipes Sentence: Three Years and 65 Words

Chuck Norris can divide by zero. Chuck Norris can split the atom with his bare hands. But even Chuck Norris can’t keep Wesley Snipes out of jail. This is an acutal letter written to the judge who recently sentenced Snipes … Continue reading

Posted in law | Comments Off