Administrative Law

Lenders Wary of TARP Regs Even Before Plan for $500K Pay Cap

Some financial institutions fearful of restrictions on federal bailout money are backing out of the Troubled Asset Relief Program or deciding not to apply. Lawyers spoke to the American Lawyer about how banks are responding to TARP provisions before news broke that President Barack Obama plans to cap annual pay…

Feb 4, 2009 3:20 PM CST

Madoff Whistle-blower to Blast SEC in Congressional Testimony Tomorrow

Trying to warn the U.S. Securities and Exchange Commission about an apparent fraud being perpetrated by Bernard Madoff was not only frustrating but potentially dangerous, a whistle-blower reportedly plans to say in testimony tomorrow before a congressional subcommittee. Despite his repeated warnings to the SEC, starting in 1999 or 2000,…

Feb 4, 2009 1:02 AM CST

FDA Opens Criminal Probe of Peanut Co.; Obama Calls for Agency Overhaul

The federal Food and Drug Administration has opened a criminal investigation into a closely held Virginia-based company that has been blamed for a salmonella outbreak that allegedly sickened more than 500 people and killed eight. Although Peanut Corp. of America’s own tests in 2007 and 2008 showed that salmonella was…

Feb 2, 2009 5:55 PM CST

Humane Hassle

Compassionate Homeowner Shows His Stripes by Helping Sweltering Skunk Keep Its Cool

Feb 2, 2009 12:30 AM CST

Suits Filed Against Peanut Corp.; FDA Says Managers Knew of Contamination

The Georgia peanut plant linked to an outbreak of salmonella sold its products despite a dozen internal tests over the last two years that indicated contamination with the disease, according to officials of the Food and Drug Administration. Michael Rogers, director of field investigations at the FDA, told reporters yesterday…

Jan 28, 2009 12:09 PM CST

Law Prof, Nominated for Regulatory Czar, Advocated ‘Senior Death Discount’

Harvard law professor Cass Sunstein, nominated to become regulatory czar in the Obama administration, supports a cost-benefit analysis that has ruffled liberal feathers when advocated by Republicans. Sunstein is “dedicated to calculating the dollar value of every regulation,” the Los Angeles Times reports. He has advocated a “senior death discount”…

Jan 27, 2009 1:51 PM CST

FINRA Probes Brokerages That Sent Clients to Madoff

A national securities watchdog is calling for brokerages that sent clients to Bernard Madoff’s hedge fund to reveal the names of those referred and the fees obtained by doing so. In a Jan. 15 letter, the Financial Industry Regulatory Authority also asks securities brokerages to provide due diligence and marketing…

Jan 26, 2009 10:51 PM CST

Banks Avoided Federal Action by Switching to State Oversight

Banks seeking to avoid complying with federal regulatory actions often have an easy solution—they can switch to state supervision. At least 30 banks facing regulatory action since 2000 have opted for that solution, according to a Washington Post investigation. As a result, they avoid compliance with ordered changes to improve…

Jan 22, 2009 5:45 PM CST

Whole Foods Lawyer: FTC Wants to ‘Put the Toothpaste Back in the Tube’

The Federal Trade Commission has asked a federal judge to stop further integration of Wild Oats Markets with Whole Foods, but an opposing lawyer says it’s already too late. The commission asked U.S. District Judge Paul Friedman of Washington, D.C., to order Wild Oats stores that became part of Whole…

Jan 13, 2009 6:20 PM CST

Noncitizens Have No Right to Counsel in Deportation Cases, Mukasey Finds

Days before a new presidential regime will be in place at the White House, U.S. Attorney General Michael Mukasey issued a written opinion (PDF) yesterday finding that noncitizens have no constitutional right to counsel in deportation proceedings. The attorney general’s opinion, which reverses a 15-year precedent established by Matter of…

Jan 8, 2009 9:47 PM CST

Harvard Law Prof Cass Sunstein Appointed Regulatory Czar

Barack Obama has appointed a former colleague and friend from the University of Chicago to become the regulatory czar in his administration. Cass Sunstein, now a law professor at Harvard, “pioneered efforts to design regulation around the ways people behave,” the Wall Street Journal reports. He will become the administrator…

Jan 8, 2009 2:34 PM CST

Legal Writings of SG Nominee are ‘Dense, Hedged and Moderate’

The legal writings of Harvard law dean Elena Kagan don’t provide many clues about her terrorism positions that vexed the Bush administration. The New York Times examined the writings of Kagan, who is Barack Obama’s nominee for solicitor general, and found them to be “dense, hedged and moderate.” The Times…

Jan 7, 2009 1:34 PM CST

Beaten Hooters Waitress Wins Unemployment Benefits

The Hooters employment manual doesn’t expressly state that waitresses at the restaurant can’t work with bruises and a black eye. But it does say that the women hired to work in revealing uniforms as so-called Hooters girls at the national chain must have a glamorous appearance and strive for the…

Jan 6, 2009 12:34 AM CST

Why Madoff Warnings Were Ignored: Regulators Had Wrong Incentives

For nine years, Harry Markopolos tried to persuade the SEC that Bernard Madoff must be running an investment scam, contending that the strategy he claimed to be using didn’t match up with known facts such as the volume of trading on the options market. But, despite numerous investigations by the…

Jan 5, 2009 9:53 PM CST

How SEC Probe Missed Alleged $50B Madoff Fraud, Despite 2000 Tip

Pressured by his boss at a Boston investment firm to amp up results, after a colleague came back from a trip to New York with news of Bernard Madoff’s stellar hedge fund returns, Harry Markopolos tried to figure out how Madoff was doing it. Try as he might, Markopolos and…

Dec 18, 2008 10:28 PM CST