Block

March 31, 2005 | Law.com

After more than a decade of debate and political wrangling, mandatory expensing of employee stock options in the United States is just about a done deal. In what is seen as the final hurdle to implementing new FASB rules requiring companies to recognize stock options as an expense, SEC staff on Tuesday issued a bulletin offering guidance on the rules.

By Donna Block

3 minute read

January 05, 2006 | Law.com

The SEC announced a new policy Wednesday on how it will exercise authority and levy corporate fines. Regulators clarified the new policy by announcing two enforcement actions. The first action imposed a $50 million fine on McAfee for allegedly engaging in accounting fraud that benefited the company in making acquisitions. There was no fine in a second settlement with Applix for improperly inflating revenue, but the company agreed to hire an outside consultant to review accounting and sales practices.

By Donna Block

3 minute read

January 19, 2005 | New York Law Journal

Kenneth M. Block and Jeffrey B. Steiner, members of Brown Raysman Millstein Felder & Steiner, write that carefully drafted loan guarantees customarily contain clauses waiving defenses such as fraud, breach of fiduciary duty, breach of contract, negligent misrepresentation, failure of consideration and economic duress. Despite the ingenuity of counsel for borrowers, these waiver of defense clauses are uniformly enforced.

By Kenneth M. Block and Jeffrey B. Steiner

9 minute read

November 17, 2004 | New York Law Journal

Kenneth M. Block and Jeffrey B. Steiner, members of Brown Raysman Millstein Felder & Steiner, write that, even though contractual provisions may give the lender broad latitude in monitoring the construction process and approving the disbursement of funds, the successful completion of a project is a cooperative effort requiring open communication and a willingness to resolve disputes quickly and fairly.

By Kenneth M. Block and Jeffrey B. Steiner

10 minute read

June 28, 2007 | Law.com

SEC Chairman Christopher Cox and his fellow agency commissioners responded to a wide array of questions from members of the House Financial Services Committee Tuesday. The hearing marked the first time in a decade that all five SEC commissioners appeared before a congressional committee. The lawmakers' questions dealt with everything from hedge fund activities and access to proxy statements to the implementation of Sarbanes-Oxley's internal control provision and the convergence of accounting standards.

By Donna Block and Ron Orol

6 minute read

July 28, 2004 | Law.com

The well-oiled tech industry lobbying machine is mobilizing to take on the Senate after scoring a huge win last week when House lawmakers voted to limit the expensing of employee stock options. The 312-111 vote in the lower chamber has the tech industry basking in the afterglow and hopeful that the options issue will now have a higher profile.

By Donna Block

4 minute read

July 20, 2004 | Law.com

A controversial bill curbing a proposed rule on accounting for employee stock options is expected to soon reach the House floor. The bill has broad support and is expected to easily pass in the full House, but Senate approval is seen as problematic. The bill would restrict an FASB proposal that requires companies to count stock options' value as expenses. Opponents argue that congressional interference into FASB's rule-making sets a dangerous precedent.

By Donna Block

3 minute read

November 22, 2005 | Law.com

The internal regulators of the New York Stock Exchange and Nasdaq may team up to better police their member firms. However, complete dependence on governmental regulation "would be a tragic mistake," NYSE chief regulatory officer Richard Ketchum said during a hearing of the House Capital Markets Subcommittee. Although NYSE and NASD officials may have their hands full getting these two fierce competitors to play nice, both of the exchange police chiefs were clear about the benefits of cooperation.

By Donna Block

4 minute read

July 16, 2004 | Law.com

Three leading U.S. business groups urged accounting watchdogs Wednesday to reconsider their plan requiring companies to book the cost of employees stock options. The U.S. Chamber of Commerce, National Association of Manufacturers and Business Roundtable called on the Financial Accounting Standards Board to delay finalizing its proposed rule until the group has field-tested all the methods available to value options.

By Donna Block

3 minute read

May 11, 2006 | New York Law Journal

Congressional auditors this week released their study backing up claims that smaller companies face disproportionately higher costs to comply with the Sarbanes-Oxley Act. The government report, however, also cautioned that proposals to exempt thousands of smaller public companies from parts of the rule should be carefully weighed.

By Donna BlockThe Deal

5 minute read