The leveraged loan industry has experienced significant growth over the years and reached a record high of $450 billion in 2013.12 As the popularity of these loans increase, so too has the interest in government regulation.3 In March 2013, the Federal Reserve (“Fed”), the Office of the Comptroller of the Currency (“OCC”), and the Federal…
Month: October 2014
Proposed Staples-Office Depot Merger Will Depend on Relevant Product Market
In 1996, Staples proposed a merger with Office Depot to the FTC and Department of Justice.1 The FTC, however, opposed the merger on the grounds that it “would violate federal antitrust laws by substantially reducing competition in the retail sale of office supply superstores in various markets throughout the country where each firm directly competes…
As Apple Pay Is Set to Launch, Will It Become the Apple of CFPB’s Eye?
As Apple looks to replace the wallet with its new Apple Pay feature, is the technology giant unwittingly exposing itself to regulation from the Consumer Financial Protection Bureau (CFPB)? Apple Pay allows iPhone users to store their credit and debit cards on their phones and pay for purchases using their phones as well—essentially making plastic…
Asian Companies Battle US Companies in Social Messaging War
Giving a new acquaintance your phone number so you can text each other is soon to be a relic of the past. It is now much easier to communicate using social media apps, where users can create group chats, send media files, and even call each other just by using a Wi-Fi connection.1 Exactly why…
In Takeover Battle, Allergan Agrees to Special Meeting Amidst Critique of Restrictive Bylaw
On September 15, 2014, Allergan made a concession in its contentious battle to thwart Valeant Pharmaceuticals and hedge fund Pershing Square Capital Management in their joint attempt at a $53 billion takeover of Allergan. 1 The concession was to agree to the special meeting called by Pershing Square with the hope of voting out a…
Principal-Agent Issues in Going Private Transactions
“Going private,” as it has been called, describes a process by which a public company becomes private. Though there are several different means of accomplishing such a transition, this post will cover that which private equity firms execute, by buying out a majority of the company’s shares to effectively take control of that public company….
Fantasy Sports: Investment Gold Mine or Legal Minefield
It is estimated that over forty-one million people have played fantasy sports in the United States or Canada this year.1 In addition to nearly nine hours per week,2 these players are spending vast sums of money on this increasingly popular pastime. It is estimated that as much as eleven billion dollars will flow through the…
The Murky Line between a Pyramid Scheme and a Multilevel Marketing Scheme
The classic definition of a pyramid scheme is a business model which attempts to make money solely by recruiting new participants into the program. Pyramid schemes usually promise astronomical returns within a short period of time. Members are generally required to hand over money at the initial sign-up stage. In return, members receive the opportunity…
Despite Outstanding Growth Prospects, Alibaba’s IPO Fraught with Risk
Although few retail investors in the United States have even heard of Chinese e-commerce behemoth Alibaba, anticipation on Wall Street this week for the company’s forthcoming I.P.O. is palpable.1 Touted by many as a uniquely positioned hybrid of eBay, Amazon, and Google, the company announced its plans earlier this year to go public in New…