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Bond markets had been domestic, with buyers focusing on issuers from their home markets.
Some of these derivatives have become black holes on issuers' books, and can be unwound only at a heavy cost.
Another idea would have a public body, like the S.E.C., hire the agencies, paying the bills with fees levied on issuers.
Indeed, why not pay commenters who accumulate "likes" or whose comments on issuers turn out to be valuable in light of evidence of those enterprises' subsequent success?
The total potential recovery is difficult to establish at this point, but the potential exposure of the banks could be significant because Sections 11 and 12(a)(2) impose near strict liability on issuers and underwriters.
In addition, regulators are putting pressure on issuers of the debt as well as the brokerage firms that sell it, compelling them to expand their financial disclosures and to do so on a timely basis.
Similar(51)
But cases where the agency has alleged unfair dealing on behalf of issuers during the credit boom are rare.
Andrew Ang, a professor at Columbia Business School, says the S.E.C.'s reluctance to act on behalf of issuers may be a result of its odd position as a federal regulator trying to oversee municipalities that are under state jurisdiction.
While the commission has been active in protecting investors from some deceptive practices, it has been less inclined to take action on behalf of issuers against financial firms that underwrite these bonds.
The company said the growth was due to signing on new card issuers, as well as an increase in transaction volume from already existing issuers.
One exception: stricter limits on card issuers' ability to raise interest rates on existing balances, which would take effect 90 days after the bill is signed into law.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com