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SEC Statements Suggest Heightened Insider Trading Scrutiny Even if Using a Rule 10b5-1 Trading Plan | White & Case LLP


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Recent warnings from the US Securities and Exchange Commission ( SEC ) and the US Congress could translate into more aggressive scrutiny of trading plans adopted pursuant to Rule 10b5-1 of the Securities and Exchange Act of 1934 ( Exchange Act ).
In a speech delivered on June 7, 2021, SEC Chair Gary Gensler identified several cracks in Rule 10b5-1 trading plans that could allow for insider trading.
1 A few days later, the SEC released an updated rulemaking agenda, which includes amendments to the affirmative defense against insider trading provided by Rule 10b5-1 to corporate executives and directors ....

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overvaluing the future...


 
IT’S ONLY WHEN the tide goes out that you learn who’s been swimming naked,” the billionaire investor Warren Buffett has famously said.
During the crash of 2008, the whole world learned just how dangerously nude Wall Street was. Now evidence is accumulating that suggests that many financial institutions are skinny-dipping once more via similar types of lending that could lead to similar disasters as the water recedes again due to the Covid-19 pandemic.
A longtime industry analyst has uncovered creative accounting on a startling scale in the commercial real estate market, in ways similar to the “liar loans” handed out during the mid-2000s for residential real estate, according to financial records examined by the analyst and reviewed by The Intercept. A recent, large-scale academic study backs up his conclusion, finding that banks such as Goldman Sachs and Citigroup have systematically reported erroneously inflated income data that compromises the integri ....

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