It was a small gathering at the luxurious Guadalmina golfing resort in Marbella. The agenda was padded with plenty of golf and fine dining. They were there for a good time. But they were also there on business: a three-day brainstorm on share trading, "deal flow", money laundering, and how to make money from the first and second while avoiding being pinged for the third Busting the boiler room
*UK SFO in court defeat over boiler room
High academic achievement now linked to… failure in the workplace? Well, that’s simultaneously depressing and comforting. [Law and More]
"The pressure of academia drove me to heroin"
Ann Lipton has an interesting analysis of the pros and cons of the proposal to require auditing firms to disclose the names of engagement partners, and other firms, involved in an audit of a public company
After the Immigration and Customs Enforcement Agency (ICE) noticed a rash of malware infections, it told employees to stop accessing personal webmail accounts from their government computers. Oh, no, said the American Federation of Government Employees (AFGE), which grieved the change as having been made without prior bargaining with the union. An arbitrator agreed, ruling that “federal law did not give federal agencies ‘sole and exclusive discretion’ to manage its information technology systems.” ICE appealed, but the Federal Labor Relations Authority (FLRA) “also sided with the union.” [Washington Times]
How weak corporate governance contributed to the VW scandal:
Although the primary cause of the emissions scandal at Volkswagen appears to have been misfeasance and malfeasance on a corporate-wide scale, we argue that such a problematic culture existed at Volkswagen because of the composition of the board itself in combination with the unique governance structure known as “co-determination,” that defines many German companies, including VW. There are three major problems from a corporate governance standpoint with the Volkswagen board. First, is the interest-conflicting nature of the dual-class stock held by the dominant shareholding Porsche and Piech families. Second, is the presence of a government as a major shareholder. And third is the organization of its characteristically German “two-tier” board around the principle of co-determination, which mandated significant labor representation. We argue that each of these elements of the VW ownership and governance structure contributed in varying degrees to the board failure of oversight that led to the management decision to evade emissions regulations.Elson, Charles M. and Ferrere, Craig K. and Goossen, Nicholas J., The Bug at Volkswagen: Lessons in Co-Determination, Ownership, and Board Structure (November 25, 2015). Journal of Applied Corporate Finance, Vol. 27, No. 4, 2015. Available at SSRN: http://ssrn.com/abstract=2737544
They very kindly cited some of my work in the area, including Privately Ordered Participatory Management: An Organizational Failures Analysis (September 1997). Available at SSRN: http://ssrn.com/abstract=38600
...financial institution regulatory agencies today issued guidance clarifying the applicability of the Customer Identification Program (CIP) rule to prepaid cards issued by banks. The guidance applies to banks, savings associations, credit unions, and U.S. branches and agencies of foreign banks (collectively “banks”).