Friday, February 12, 2021
On February 8, the staff of the SEC’s Division of Corporation Finance (the Staff) published a sample comment letter that the Staff might send to companies that conduct securities offerings during periods of extreme stock price volatility. In its statements accompanying the sample comment letter, the Staff acknowledged the necessity of capital formation, even when the financial markets and stock prices are volatile, while also cautioning that unpredictability in the market can prove hazardous to investors and companies alike. The Staff noted the risks are “particularly acute” when companies attempt to raise capital during times of “recent stock run-ups or recent divergences in valuation ratios relative to those seen during traditional markets,” “high short interest or reported short squeezes,” and “reports of strong and atypical retail investor interest (whether on social media or otherwise).” The Staff indicated that those risks
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Thursday, February 11, 2021
If you have a credit facility based on the London Interbank Offered Rate (LIBOR), you may soon get a notice from your lender or the administrative agent on your credit facility saying that a “Benchmark Transition Event” has occurred. Here is what you need to know about what that notice really means.
ICE Benchmark Administration Announcement
On November 30, 2020, LIBOR’s administrator, the ICE Benchmark Administration (IBA), announced that it would consult on ceasing to determine one-week and two-month USD and all GBP, EUR, CHF and JPY LIBOR settings after the December 31, 2021, setting and ceasing to determine all other USD LIBOR settings after the June 30, 2023, setting. On January 25, 2021, that consultation closed, and market participants believe that the IBA will likely issue a statement about that consultation imminently.
Thursday, February 11, 2021
The Fair Debt Collection Practices Act (“FDCPA”) is a significant piece of legislation. It has regulated “debt collectors,” as defined by statute, for over 40 years. Recently, the Consumer Financial Protection Bureau issued a new rule implementing the statute’s enforcement (for CPW’s prior coverage, check out here and here). Despite these significant developments, however, a recent opinion reminds us of one significant shortcoming concerning the FDCPA:
the Supreme Court has never addressed standing under the statute. In the absence of precedent from the nation’s highest court, this recent opinion highlights a common standing analysis performed by courts faced with standing issues under FDCPA claims. Read on to learn more.
Thursday, February 11, 2021
As has been widely reported, President Biden has nominated Gary Gensler to be the next chairman of the Securities and Exchange Commission. After becoming one of the youngest partners at a leading Wall Street investment bank, Gensler transitioned into government service as a senior official in President Clinton’s Treasury Department and as the chairman of the Commodity Futures Trading Commission under President Obama. While at the CFTC, Gensler was the principal architect of the sprawling Dodd-Frank Act’s provisions regulating the swaps markets, and he worked tirelessly to implement new CFTC rules regulating the space. He has deep experience both in the financial markets and as a regulator.