Tagged: Tamar Frankel

Ex-Madoff employees arrested

November 18th, 2010 in Law 0 comments

Two former employees of Bernard Madoff have been arrested and charged with securities fraud in connection with Madoff’s Ponzi scheme to defraud investors of billions of dollars. Law professor Tamar Frankel, an authority on securities law and author of “Trust and Honesty: America’s Business Culture at a Crossroads,” says a massive fraud like this cannot be done without help.

“Helpers should know that they become part of a fraudulent scheme even if they do not know all the details.

“Their remuneration, for example, may give signals that what is going on is not entirely legal — in this case, suspicious enough to raise liability as helpers.

“But helpers must be involved in the scheme. The cleaners of an office in which fraud is committed are not criminally liable.”

Contact Tamar Frankel, 617-353-3773, tfrankel@bu.edu

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Financial regulatory bill agreed on

June 25th, 2010 in Law 0 comments

buy & sell keysHouse and Senate conferees finally worked out a compromise bill aimed at reshaping financial regulations to avoid another Crash of ’08, with a final vote set for next week and President Obama expected to sign it by July 4th.  As expected: many winners and losers.  One controversial provision gives the SEC authority to require stockbrokers to protect their clients’ interest when recommending investments, potentially subjecting brokers to the same fiduciary duty as financial advisers.  Law Professor Tamar Frankel, author of “Trust and Honesty: America’s Business Culture at a Crossroad” and authority on securities law, says it’s about time.

“It offers a chance and a challenge for the SEC to become the leader that it used to be from the 1940s until about 1980.  It is a chance to bring about a far more reliable financial system and to refocus on productivity rather than betting.”

Contact Tamar Frankel, 617-353-3773, tfrankel@bu.edu

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J.P. Morgan hit with record U.K. fine

June 3rd, 2010 in Banks 0 comments

J.P. Morgan Chase logoBritish regulators fined investment bank J.P. Morgan Chase a record $48 million for failing to keep client money separate from the firm’s money — from 2002 when Morgan merged with Chase until mid-2009 — which put client money at risk had the company gone insolvent.  Law Professor Tamar Frankel, an authority on securities law and author of “Trust and Honesty: America’s business Culture at a Crossroad,” reminds that client money cannot be viewed as the bank’s own.

“The money that clients deposit with a bank to trade on behalf of clients as brokers or any other form of a fiduciary relationship continues to belong to the client — therefore, it cannot be mixed with the bank’s money.”

Contact Tamar Frankel, 617-353-3773, tfrankel@bu.edu

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Regulators too close to oil industry

May 25th, 2010 in Law 0 comments

oil rigsThe Interior Department’s inspector general issued a report showing an all-to-cozy relationship between the department’s Minerals Management Service and the oil industry that it was supposed to be regulating.  Law Professor Tamar Frankel, author of “Trust and Honesty: America’s Business Culture at a Crossroad” and an authority on legal ethics, says the problem of regulators becoming captives is complex and there should be limits on how much they can accept in gifts from those they’re overseeing.

“There are many other effective ways to nip corruption in the bud.  The main point is to recognize that it is waiting in the shadows and to eliminate it before it starts festering and rotting the system.”

Contact Tamar Frankel, 617-353-3773, tfrankel@bu.edu

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Fiduciary and investment banks

May 5th, 2010 in Law 0 comments

money changing handsOn the heels of allegations that Goldman Sachs took advantage of clients during the mortgage-market collapse, Congress reportedly is considering new legal standards for investment banks when they deal with customers.  Law Professor Tamar Frankel, an authority on securities law and author of “Trust and Honesty: America’s Business Culture at a Crossroad,” says slapping fiduciary duties on investment bankers would prevent them from acting for their own benefit at the expense of the investors.

“The result may be that brokers and investment bankers will innovate less for their own benefit and might even, God forbid, earn less.  But the financial system will be less subject to bubbles and crashes, so investors might earn less but they’ll also lose less.”

Contact Tamar Frankel, 617-353-3773, tfrankel@bu.edu

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Skilling gets SCOTUS appeal

October 13th, 2009 in Law 0 comments

Enron logoConvicted Enron CEO Jeff Skilling will get the chance to appeal to the U.S. Supreme Court his federal conviction on conspiracy, securities fraud, insider trading, and lying to auditors.  Law Professor Tamar Frankel, an authority on securities law and legal ethics, says it shouldn’t matter whether a manager directly or indirectly benefited from a wrongful act.

Managers command enormous power derived from other people’s money. With power comes responsibility. With performed crimes comes criminal responsibility.”

Contact Tamar Frankel, 617-353-3773, tfrankel@bu.edu

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