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The Corporate Observer A Publication by Attorneys Devoted to Protecting Consumer Rights

Monthly Archives: September 2010

Quick Links: FINRA Supports Investors, the SEC is Busy, and Small Banks Struggle with TARP

By Steven Berk on Posted in Consumer Protection

Uncharacteristically, FINRA plans to propose a rule that makes it easier and fairer for securities disputes to be decided. Arbitration, currently presided over by a group least one member of the securities industry, would shift to a committee of only members of the public.
The SEC continues to crack down on phone investment scams that target innocent investors. For a complete list of press releases regarding their cases, see the Commission’s press releases.
Some large banks have fully repaid their TARP loans, but we must not forget the billions loaned out to smaller banks, many of which are struggling to repay. Less than 20% of the banks that accepted loans have repaid fully, and over $60 billion was still due to the Treasury as of August, Reuters reports.

The Supreme Court Slams the Courthouse Doors on American Investors Who Purchased Securities Abroad

By Steven Berk on Posted in In the Courts

With the US Treasury into the Chinese for $850 billion in debt alone–an amount about which the Chinese have expressed understandable concern–do we really want our Supreme Court sending a message of isolationism? Why in an economy that grows more global every day should the law favor investment in securities only listed on homegrown exchanges? Shouldn’t our citizens have the advantage and choice of a wider array of investments? This “buy American” approach is shortsighted and hardly allows for liquidity to flow to the most desirable investments or for American investors to obtain the highest returns. At a minimum the Supreme Court should have found a middle ground–something that reflects today’s reality–and as with any jurisprudential shift: move slowly to reflect the changes in the marketplace.

Health Care Legislation Takes Effect: What You Need To Know

By Steven Berk on Posted in Consumer Protection, Social Policy

Score one, two, three… I count eight for the everyday American, and this summary doesn’t cover all of the changes you will see. It is certainly a day to celebrate, but we must also ensure that the parts of the plan needing oversight – denial of preexisting conditions, retroactive cancellation, and the appeals process – are truly governed and enforced. The next step is to give the bill teeth, but for today let us raise our glasses, this time without fear of throwing out a shoulder.

Right on Cue: Elizabeth Warren Update

By Steven Berk on Posted in Consumer Protection

Updating Wednesday’s post, the Wall Street Journal reports that Elizabeth Warren has been named “assistant to the president and special advisor to Treasury Secretary Timothy Geithner.” This does not make her head of the Consumer Financial Protection Bureau – that position is still unfilled – but it gives her authority to appoint officials and direct some of the operations of the Bureau. Consumers can celebrate this moment, when the CFPB can finally move towards strategic enforcement. Eventually, Congress will confirm a director, but in the meantime Ms. Warren will give the Bureau much-needed and immediate direction.

Charlie Rose Interviews Andrew Sorkin

By Steven Berk on Posted in Consumer Protection

Charlie Rose recently interviewed New York Times financial writer Andrew Sorkin on a PBS special that I highly recommend. Sorkin discusses the true causes of the financial crisis, current causes for concern, Basel III, Elizabeth Warren and more. Enjoy the link.

The Sooner the Better: Appoint Elizabeth Warren

By Steven Berk on Posted in Consumer Protection

Naming Warren the interim head is a no-lose scenario. The time is now. Her immediate appointment would allow the CFPB to begin planning and doing its important job of policing on behalf of consumers, while also serving as a referendum on Warren’s ability to lead the bureau. What is lost in that scenario?