SEC loosens independence rules

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According to Accounting Today, the SEC loosened independence rules as part of a deregulatory push in recent years. Questions: According to the article, what will the amendments to Rule 2-01 of Regulation SX do? How do the new and old rules vary on the following situation: An auditor is with a firm that audits a… Read more »

General Electric on Notice by the SEC action

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According to the Washington Post and the regulatory filing, the Securities and Exchange Commission warned General Electric that it faces legal action in connection with its troubled insurance business. Questions: What is a Wells notice that the SEC issued to GE? What is the reason for the notice to GE, specifically? What will happen next… Read more »

Big Overhaul at SEC

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According to Accounting Today, the Securities and Exchange Commission adopted rules to reduce the number of disclosures of business, legal proceedings and other risk factors, including environmental and human capital risks, that public companies are required to make. This is seen as probably the biggest overhaul of Regulation S-K disclosures in more than three decades…. Read more »

Fraud Disgorgement by SEC Ruled OK

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In an 8-to-1 decision, written by Justice Sonia Sotomayor, the court said the money must be for the benefit of investors and cannot exceed the actual profits that came from the wrongdoing.  Questions: Which justice voted against the majority saying that the law does not give authority to the SEC for the practice of disgorgement?… Read more »

SEC Commissioner Entangled in Friday Night Controversy

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Corporate lawyer, Jay Clayton, named to the Securities and Exchange Commission (SEC) was near to landing his dream job when he became embroiled in a huge political fight where Geoffrey S. Berman, the current United States attorney for the Southern District of New York was fired.   Questions: What was the controversy explained in the… Read more »

Mattress Startup – Casper – filed to go public

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Questions: What paperwork is filed with the SEC to go public? What are some of the eccentric nuggets in Casper’s paperwork? According to Casper, how does the mattress market interface with the sleep economy and the sleep arc and other sleep products and services? Source: Hartmans, A. (2020). The 6 most surprising and unusual takeaways… Read more »

Another IPO in Albertson’s future?

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After failing multiple times to go public, Albertsons’ grocery chain is launching an IPO valued at around $19 billion. Questions: When did Albertsons previously try to go public? Who is Albertsons’ private equity investor and how long have they been invested in Albertsons? How much is Albertsons’ net debt, excluding leases? Why didn’t Albertsons’ merger… Read more »

The Last Act

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After years of continually beating the market with quarterly revenue targets, Parker H. Petit, CEO of MiMedx Group, Inc., was sued by the SEC for  allegedly engaging in a “wide-ranging fraud” to inflate revenue. Questions: What is the industry type in which MiMedx operates? What were the ways in which the company perpetrated the fraud?… Read more »

Fitbit sale to Google

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According to the New York Times, Google said on Nov. 1 that it is acquiring Fitbit, the maker of fitness-tracking devices, for $2.1 billion to close the gap with Apple in the growing market for wearable electronics and to add muscle to its expanding hardware business. Questions: Why is the deal is likely to face… Read more »

Who will decide the fate of the CFPB?

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Today, according to VOX, the Supreme Court announced that it will hear a lawsuit challenging the leadership structure of the Consumer Financial Protection Bureau (CFPB). Questions: According to the article, who championed the establishment of the CFPB? In general, who leads most federal agencies and who leads most independent agencies by contrast? How is the… Read more »