Today we continue our bi-weekly installment shining a light on the best of the corporate and securities blogosphere. Highlights include Pandit’s abrupt exit, some surprising side-effects of FCPA enforcement, examining what’s better than Dodd-Frank and more. If there are any corporate or securities blogs you think should be highlighted by our Top 5, please comment on this post and we’ll check them out!
1) DealBook: Despite Its Problems, Dodd-Frank Is Better Than the Alternatives - In this election year there has been a lot of talk of doing away with Dodd-Frank in pieces or in its entirety. What is not entirely clear is what would be the alternative. In this post, Deal Professor Steven Davidoff examines the other options and says repealing the Dodd-Frank Act won’t end “too big to fail” banks, and it may even make things worse.
2) The Conglomerate: Pandit, Citi and Shadow Banking - Just before his shocking resignation, Citi’s Vikram Pandit gave a speech in which he criticized federal regulators for not addressing the shadow banking system. In this post, Erik Gerding discusses the irony of Pandit’s statements considering the role Citi plays in this system but also bemoans the fact that Pandit’s resignation may have deprived us of having a clearer sense of what shadow banking is and the risks it poses.
3) Corporate Compliance Insights: FCPA Enforcement’s Surprising Effect on Foreign SOEs and Why It Matters - Robust FCPA enforcement has had global ramifications over the past several years. One of the more surprising developments however has been the effect of FCPA enforcement on foreign state-owned enterprises (SOEs), the entities that are often the recipients of the bribes themselves. In this post, Matteson Ellis considers three recent developments with SOEs that have resulted from FCPA enforcement.
4) The Race to the Bottom: Going the Way of the Dodo: CFOs on the Board of Directors - The number of CFOs serving on the boards of Fortune 500 companies has dropped 50% in the past 7 years. In this post, Jay Brown says this is part of the general trend towards independent directors. However, he says there are certain benefits to having the CFO on the board, namely that it provides an additional source of inside information for independent directors other than just the CEO.
5) HLS Forum on Corporate Governance & Financial Regulation: Rational Boundaries for Cost-Benefit Analysis in SEC Rulemaking - In this post, Bruce Kraus discusses a recent paper he co-authored with Connor Raso in which they argue that the D.C. Circuit’s Business Roundtable decision has set a very high bar for cost-benefit analysis in rulemaking by financial regulators like the SEC. The paper analyzes the interplay of legislative, executive, agency and judicial actions over the last thirty years that led to this situation.