19
In the Matter of Piper Capital Management, Inc. et al.,
Administrative Proceeding File No. 3-9657, November 30, 2000, p. 13.
20
Karen Padley, “Piper Jaffray Lobbied to Let Minnesota Towns Invest in Bond Fund,”
Bloomberg News,
August 26, 1994, p. 1.
21
Gary Weiss, “The $700 Million Mystery,”
BusinessWeek
, December 18, 1995, p. 76.
22
ABF v. Askin Complaint,
March 27, 1996, p. 20.
24
“What Went Wrong at Granite,”
Derivatives Strategy,
April 4, 1994, p. 5.
25
“David Askin's Friends,”
Derivatives Strategy,
April 25, 1994, p. 5.
26
David Kleinbard, “U.S. Labor Department Investigates Derivatives Use by Two Funds,”
Bloomberg News,
October 27, 1994, p. 1.
27
ABF v. Askin Complaint,
pp. 32-33.
28
ABF v. Askin Complaint,
p. 61.
29
ABF v. Askin Complaint,
p. 62.
31
In the Matter of Piper Capital Management, Inc. et al.,
p. 6.
32
Susan E. Kuhn, “He Lost How Much? $800 Million?”
Fortune,
September 19, 1994, p. 38.
33
G. Bruce Knecht, “Piper Manager's Loss May Total $700 Million,”
Wall Street Journal,
August 25, 1994, p. C1.
35
In the Matter of Piper Capital Management, Inc. et al.,
p. 6.
37
Kevin Shinkle and Tim Quinson, “Kidder Spends $7 Mln to Cover Money Market Losses,”
Bloomberg News,
August 31, 1994, p. 1.
38
David Kleinbard, “U.S. Labor Department Investigates Derivatives Use by Two Funds,”
Bloomberg News,
October 27, 1994, p. 1.
39
Tim Quinson and Matt Rees, “United Services Spends $93 Mln to Shore Up Money Fund,”
Bloomberg News,
September 29, 1994, p. 1.
40
Fidelity Investments, “Letter from Edward C. Johnson III, Chairman,” June 1, 1994, p. 2.
41
In the Matter of NationsSecurities and NationsBank, N.A.,
Administrative Proceeding File No. 3-9596, Securities Act Release No. 7532, Exchange Act Release No. 39947, May 4, 1998.
42
In the Matter of NationsSecurities and NationsBank
,
N.A.,
p. 375.
43
Al Ehrbar, “The Great Bond Market Massacre,”
Fortune,
October 17, 1994, p. 77.
44
“The World According to Stan Jonas,”
Derivatives Strategy,
November 1995, p. 38.
46
Matt Rees and Tim Quinson, “Mutual Fund Directors Need More Derivatives Savvy,”
Bloomberg News,
May 26, 1994, p. 1.
47
Christian Plumb, “Lehman Brothers VP Charged with Using Jury Imposter,”
Bloomberg News,
January 20, 1995.
Chapter 6: Morals of the Marketplace
1
“New School Slates Futures and Options Conference,”
Securities Week,
September 30, 1985, p. 9.
2
Meinhard v. Salmon,
164 N.E. 545, 546 (N.Y. 1928).
3
“Interim Report to the Trustees and Members of the Common Fund on First Capital Strategists,” Cravath, Swaine & Moore, January 4, 1996.
4
Hal Lux, “The Insider: Proposed SEC Chief Arthur Levitt Jr. Knows Almost Everyone on Wall StreetâWhich Is Good News and Bad,”
Institutional Investor,
May 31, 1993, p. 16.
6
Kevin J. Murphy, “Politics, Economics, and Executive Compensation,”
University of Cincinnati Law Review, Volume 63
(1995), pp. 713, 738.
8
David A. Vise, “Levitt Set to Sell Stake in
Roll Call,
”
Washington Post,
June 5, 1993, p. C1.
10
Claudia Maclachlan, “SEC Nominee Says He'll Study Curbs on Securities Suits,”
National Law Journal,
July 26, 1993, p. 15.
11
“SEC Nominee Says Strict Rules Make U.S. Markets Attractive,”
Thomson's International Banking Regulator,
July 19, 1993, p. 2.
12
Moneyline,
Cable News Network, September 9, 1993.
13
Hal Lux, “Levitt's Last Testimony,”
Institutional Investor,
January 2001, p. 74.
14
David Kleinbard, “CFTC Study Finds Little Risk from Derivatives,”
Bloomberg News,
October 26, 1993, p. 1.
15
Anne Schwimmer, “When ISDA Comes Calling . . . ,”
Investment Dealers' Digest,
November 21, 1994, p. 16.
16
“Financial Derivatives: Market Overview and Supervisory Concerns,” A Report Prepared by House Banking Committee Minority Staff, November 1993.
17
Brett D. Fromson, “Some Industry Executives See Dangers of Derivatives Causing âMeltdown,'”
Washington Post,
October 28, 1993, p. A29.
18
“Levitt Calls for More Fund Oversight by Directors,”
Bloomberg News,
March 21, 1994, p. 1.
19
“Now Hear This,”
Fortune,
October 31, 1994, p. 21.
20
Antony J. Michels, “Is Your Money Fund Safe?”
Fortune,
October 3, 1994, p. 40.
21
Erick Schonfeld, “A Broken Buck,”
Fortune,
October 31, 1994, p. 21.
22
“Financial Derivatives: Actions Needed to Protect the System,” U.S. General Accounting Office, May 18, 1994.
23
“The GAO Report on Financial Derivatives: Good Facts and Bad Conclusions,” An ISDA Position Paper, May 27, 1994, p. 1.
24
Bank for International Settlements, “Central Bank Survey of Derivatives Market Activity,” December 19, 1995, p. 1.
25
Fred S. McChesney, “Economics, Law and Science in the Corporate Field: A Critique of Eisenberg,”
Columbia Law Review, Volume 89
(1989), pp. 1530, 1544.
26
Sean M. Flanagan, “The Rise of a Trade Association: Group Interactions within the International Swaps and Derivatives Association,”
Harvard Negotiation Law Review, Volume 6,
Spring 2001, p. 238, note 136.
27
Dean Tomasula, “Study Showing Derivatives Profits at Banks Criticized as One-Sided,”
American Banker,
October 19, 1994.
28
Lynn Stevens Hume, “Regulators, Industry Give Differing Views on Bill; Leach Blasts Bank Official for Misstating Provisions,”
The Bond Buyer,
July 13, 1994, p. 6.
32
Saul Hansell and Kevin Muehring, “Why Derivatives Rattle the Regulators,”
Institutional Investor,
September 1992, p. 49.
35
Dean Tomasula, “Congress Expected to Take Heat off the Swaps Market,”
American Banker,
October 14, 1994, p. 22.
37
Michael Peltz, “Congress's Lame Assault on Derivatives,”
Institutional Investor,
December 1994, p. 65.
38
“The Risk Management Improvement and Derivatives Oversight Act,” H.R. 20, 104th Congress, 1st Session (1995).
39
“The Derivatives Safety and Soundness Supervision Act of 1995,” H.R. 31, 104th Congress, 1st Session (1995).
40
“The Derivatives Limitations Act of 1995,” S. 557, 104th Congress, 1st Session (1995).
41
“The Derivatives Dealers Act of 1995,” H.R. 1063, 104th Congress, 1st Session (1995).
42
Ray J. Groves, “Here's the Annual Report. Got a Few Hours?”
Wall Street Journal,
August 4, 1994, p. A12.
43
“Derivatives Accounting Disclosure and Market Surveillance,” International Swaps and Derivatives Association Conference, September 25, 1996, p. 7.
46
Section 162(m) of the Internal Revenue Code was amended by the Omnibus Budget Reconciliation Act of 1993, Public Law No. 103-66, 13,211 (1993).
48
Code of Federal Regulations, Volume 26,
Section 1.162-27(e)(2).
49
Code of Federal Regulations, Volume 26,
Section 1.162-27(e)(2)(vi).
50
APB Opinion No. 25 (1972).
51
“Executive Compensation Disclosure,” Exchange Act Release No. 33-692, October 21, 1992.
52
Julie Kosterlitz and Neil Munro, “Full Disclosure,”
National Journal,
February 23, 2002, p. 5.
53
“Legislation Introduced to Overturn FASB Stock Option Proposal,”
Journal of Accountancy, Volume 176,
October 1993, p. 15.
54
Financial Accounting Standard No. 119, October 1994.
55
“Legislation Introduced to Overturn FASB Stock Option Proposal,” p. 7.
56
“Proposed Amendments to Require Disclosure of Accounting Policies for Derivative Financial Instruments and Derivative Commodity Instruments,” Securities Act Release No. 7250, Exchange Act Release No. 36643, December 28, 1995.
57
Release Nos. 33-7386; 34-38223; IC-22487; FR-48, January 31, 1997.
58
Rahul Jacob, “The SEC Zeroes in on Derivatives,”
Fortune,
November 28, 1995, p. 15.
59
Release Nos. 33-7386; 34-38223; IC-22487; FR-48, p. 26, note 67.
60
“BT, BBL Lead with Forex Structures that Skirt FASB Accounting Standards,”
Derivatives Week, Volume 4,
March 6, 1995, pp. 1, 11.
61
Todd E. Petzel, “Derivatives: Market and Regulatory Dynamics,”
Journal of Corporation Law,
Fall 1995, p. 108.
62
Henry T. C. Hu, “Hedging Expectations: âDerivative Reality' and the Law and Finance of the Corporate Objective,”
Texas Law Review, Volume 73,
April 1995, p. 985; Lynn A. Stout, “Betting the Bank: How Derivatives Trading under Conditions of Uncertainty Can Increase Risks and Erode Returns in Financial Markets,”
Journal of Corporation Law,
Fall 1995, p. 53.
63
Joseph A. Grundfest, “The Limited Future of Unlimited Liability: A Capital Markets Perspective,”
Yale Law Journal, Volume 102
(1992), pp. 410-411.
64
Minutes of Meeting of the Federal Advisory Council and the Board of Governors, May 13, 1994.
65
Laura Jereski, “Mortgage Securities Weaken Fed's Power,”
Wall Street Journal,
August 30, 1994, p. C1.
66
Frontline
(PBS Interview), May 2001. For a more thorough discussion of the SEC's approach to such investigations, see William R. McLucas, J. Lynn Taylor, and Susan A. Mathews, “A Practitioner's Guide to the SEC's Investigative and Enforcement Process,”
Temple Law Review, Volume 70,
Spring 1997, p. 53.
67
“Hearings before the Subcommittee on Securities of the Senate Committee on Banking, Housing, and Urban Affairs on S. 647 to Amend the Federal Securities Laws to Revise Enforcement Remedies for Civil Violations of Those Laws,” 101st Cong. (1990), pp. 56-57.
68
In the Matter of BT Securities Corp,
S.E.C. Release Nos. 33-7124, 34-35136, December 22, 1994.
69
In the Matter of Gary S. Missner,
62 S.E.C. Docket 265, SEC Release Nos. 33- 7304, 34-37301, June 11, 1996.
70
In the Matter of Mitchell A. Vazquez,
61 S.E.C. Docket 858, SEC Release Nos. 33-7269, 34-36906, February 29, 1996.
71
In the Matter of Gary S. Missner.
72
In the Matter of Mitchell A. Vazquez.
73
Gary S. Missner, letter to
Fortune,
May 1, 1995, p. 7.
74
In the Matter of Global Capital Investment LLC and Mitchell Vazquez,
CFTC Docket No. 02-07, February 27, 2002.
75
“Ex-Trader Cleared of Charges,”
New York Times,
June 9, 2000, p. C24;
Wall Street Journal,
June 12, 2000, p. A26.
76
SEC v. Lavin,
111 F.3d 921 (D.C. Cir. 1997);
SEC v. Lavin,
937 F. Supp. 23 (D.C. Cir. 1996).
77
In re BT Securities Corp.,
Exchange Act Release Act No. 35,136, December 22, 1994, p. 1193.
78
In the Matter of Gibson Greetings,
File No. 3-8866, Exchange Act Release No. 36357, October 11, 1995.
79
Edmund L. Andrews, “Embattled Bankers Trust Chairman Resigns,”
New York Times,
June 30, 1999, p. C4.
80
Liz Moyer, “Ex-Bankers Trust Chairman Resigns from Deutsche Bank,”
The American Banker,
June 30, 1999, p. 5.
81
In the Matter of Piper Capital Management, Inc. et al.,
Administrative Proceeding File No. 3-9657, November 30, 2000, p. 9.
82
In the Matter of Piper Capital Management, Inc. et al.,
p. 9.
83
In the Matter of Piper Capital Management, Inc. et al.,
pp. 66, 70.
84
SEC v. CS First Boston Corp.,
Litigation Release No. 15160, November 20, 1996, pp. 1-2.