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On one hand, bills supporting deregulation are garnering legislative support. On the other, a number of high-profile members of Congress have spoken out in favor of stricter rule enforcement and prosecution.
June 24 -
Solera National Bancorp (SLRK) lost its proxy battle at the ballot box, though the Lakewood, Colo., company still hopes it can win in the courtroom.
May 28 -
Subpoenas have been issued by South Carolina's Attorney General's Office in connection to allegations of financial mismanagement by former executives of CertusBank.
May 16
The Supreme Court ruled against Fifth Third Bancorp (FITB) in a lawsuit filed by employees claiming the bank mismanaged their retirement investments.
The class-action lawsuit (Fifth Third Bancorp v. Dudenhoeffer) alleged that the bank's retirement fund managers invested in company stock while it was losing value, violating their duty to protect the employees' interests. It alleges that investment managers continued to invest their money in company stock knowing the share price was bound to decline further as the borrower default rate on subprime loans increased.
The two issues at hand, according to the Supreme Court filing are: whether management fulfilled its fiduciary duty requirement to be prudent when investing in the bank's employee stock ownership plan as required under the Employee Retirement Income Security Act; and whether retirement plan fund managers can be liable "for material misstatements " under ERISA and related Securities and Exchange Commission requirements.
The Supreme Court unanimously decided to send the case to an appeals court for review.
