In late February, Bloomberg stated that the SEC is “considering” forgiving decades of private equity firms acting as unregistered broker-dealers and possibly legalizing the practice going forward. In case you think this is not a big deal, as we explain later in the post, the SEC is in fact vigilant about enforcing these regulations, so this would be an unprecedented waiver of liability.
In an earlier post, we discussed the ongoing violation of SEC broker-dealer regulations by private equity firms when they collect “transaction fees” for buying and selling companies on behalf of the funds they manage. The 1934 Exchange Act mandates that only SEC-registered broker-dealers may collect transaction-based compensation (subject only to limited exceptions which are not germane here ).
Last week, Crain’s Business Daily and Fortune reported that whistleblower has provided the SEC with evidence of massive, ongoing violations of securities laws, specifically, the Securities Exchange Act of 1934, by several unnamed private equity firms.
Euro-area finance ministers agreed in principle to extend a 7 billion-euro (US$7.6 billion) bridge loan to Greece, according to an official familiar with the decision.
The loan is due to be announced on Friday once national parliaments have voted on the bailout deal that Prime Minister Alexis Tsipras signed up to on Monday, the official said, asking not to be named because the conversations were private. The loan will come from the European Financial Stabilisation Mechanism, the European Union’s rescue fund, the official said.
Wall Street firms have hit a rough patch this year. Many financial institutions are in the midst of several probes from regulating authorities and have been forced to reshuffle management due to the stringent regulations that have been placed on their operations.
December, however, brought good news for these exhausted firms. Research shows these institutions have been quite successful in retaining their junior employees in comparison to boutique investment companies.
By Matthew Smith:Manufacturers have seen solid results this week with Whirlpool (WHR) and Boeing (BA) leading the way and possibly foreshadowing better results from other names such as United Technologies (UTX).
Something strange happened on the way to Guyana Goldfields completing its latest equity issue, a financing mandated by lenders as a condition of advancing US$185-million for its Aurora Gold Project that’s scheduled for commercial production in mid-2015.
Guyana Goldfields raised equity capital by way of a non-brokered private placement. That method stands in contrast to the conventional way where an issuer will strike a bought deal with a consortium of underwriters and pass the risk of selling the shares to the dealers.
Yves here. Steve Horn of DeSmogBlog has done important original reporting and uncovered what could be impermissible dealings between North Dakota officials and David Petraeus, in his role as emissary for one of private equity’s best-known players, KKR.
I hope readers forgive me for going a bit heavy on private equity coverage this week, but with markets complacent and Congress out of session (the House is back from recess as of today), the timing is fortuitous for pursuing this topic more intensely than usual.
Greece is politically and economically bankrupt. Unemployment is 25% and destined to get much worse with the latest round of austerity measures.
Worse yet, Greece is still encumbered by massive layers of bureaucracy that makes it difficult to get anything done.
Yesterday, in a massive breach of security, Greek citizens stormed the defense ministry. This has German chancellor Angela Merkel willing to take a chance on a trip to Greece next week.