Barack Obama has been proposing corporate tax reform for a few years now.1 Democrats and Republicans agree that corporate tax reform is needed, but Democrats are reluctant to lower the rate without removing tax breaks and Republicans do not want the tax breaks to end. Washington is not moving quickly, if at all. The House…
Month: October 2014
Major League Soccer’s Single-Entity Structure: Time to Go?
In an August interview with the Washington Post, LA Galaxy head coach Bruce Arena had this to say of the league’s recent handling of his attempt to sign U.S. Men’s national team player Sacha Kliejstan: “We had a trade in place. We had budget room and space to be able to do it. We had…
The Return of the Hostile Takeover
When looking at the past several months, it is clear that unsolicited bids are on the rise and the wars that ensue are far from pretty. This past April, Endurance Specialty Holdings made a public offer for Aspen Insurance Holdings after Aspen “refused to engage at all” to friendly negotiations.1 Up until late May, Pfizer…
For Whom The Bond Tolls: Argentina’s New(er) Debt Crisis
Once again Argentina finds itself in dire capital straits as it is embroiled in a debt holdout battle with a group of American banks and hedge funds.1 Debt defaults aren’t new for Argentina – the country has defaulted eight times since 1828 – with its most recent default stemming from a previous default in 2001.2…
No money? No problem.
On November 4th, 2013, the SEC announced that it would impose a record-setting $1.2 billion fine on SAC Capital Advisors.1The fine stemmed from a multi-year investigation into allegations of insider trading at the hedge fund.2 US Attorney Preet Bharara described the insider trading at SAC as “substantial, pervasive and on a scale without precedent in…
Unsustainable Burn Rates
“No one’s fearful, everyone’s greedy, and it will eventually end.”1 Startup companies are burning through cash at unsustainable levels. Almost all failed startups cease to exist because cash runs out, and nearly all startups get close to running out of cash at some point, regardless of outcome.2 Every startup company is fueled by cash investments.3…
New Chapter for Fraudulent Conveyance in LBOs?
In the wake of the 2008 financial crisis, many companies that were the targets of Leveraged Buyouts (LBOs) filed for bankruptcy.1 In an LBO, creditors secure their loans against the target company’s assets, subordinating the claims of the target’s pre-LBO creditors. Thus, should the LBO fail and the target company file for bankruptcy, its pre-LBO…
Citi Faces (a Very Minor) Slap on the Wrist
In response to the financial crisis of 2007-2008, Congress passed the Dodd-Frank Act to bolster financial regulations and monitor Wall Street behavior. Included in the Act were amendments to Rule 506 of the Securities Act of 1933.1 Rule 506 is part of the Regulation D exemption, which allows issuers to raise capital for private offerings….
Non-Competes: Worth Competing For?
The West Coast has a reputation for being more relaxed than the East, and in at least one respect that is certainly true. California has all but done away with non-compete clauses in employment contracts, a legislative change that is loved by the startup community in Silicon Valley and despised by others around the country…
Fundrise for Everyone
Rise Companies Corporation, also known as Fundrise, acts as a crowdfunding and real estate investment platform based out of Washington, D.C. to promote local investment in real estate developments nationwide.1 Officially founded in 2012 –five years after the collapse of America’s financial and housing markets – Fundrise has put real estate crowdfunding on the charts.2…