All GLG News Analyses Filed Under: Regulation & Administrative Law

Duncan MacDonaldConsultantDuncan McDonald

Canadian regulatory decision weakens merchant interchange claims in New York lawsuit

December 2, 2008

Analysis of:The Competition Bureau's Letter to Financial Institutions — Duality and Dual Governance of Credit Card Networks in Canada | www.competitionbureau.gc.ca

A recent decision by Canada's Competition Bureau strengthens the defense of the bankcard industry in the interchange lawsuit in New York.  In reversing a long standing rule that prevented banks in Canada from issuing Visa and MasterCards. the decision concluded that the restructuring of Visa and MasterCard as independent companies has eliminated the risk that issuers can govern network decisions in violation of antitrust principles.  The reasoning of decision could persuade the judge in New York that the "market power" and collusion arguments of the merchants are no longer valid.    

A Real Challenge To The Proposed Lloyds TSB/HBOS Merger

December 2, 2008

Analysis by: GLG Expert Contributor

Analysis of:Scottish Group Files Legal Challenge to Lloyds’s HBOS Takeover | www.bloomberg.com

This is a serious challenge to the merger.  It is nothing like the previous attempts by various Scottish grandees to engineer an alternative deal for HBOS. The Competition Appeal Tribunal has a good record of hearing urgent merger cases quickly, and is unlikely to be affected by political pressures, even from Lord Mandelson. If the application is successful, which it could well be, then the Government's decision to clear the merger will be annulled.  This is not a purely procedural step: the Government would have to come up with a good reason for clearing the deal (which I don't think exists) or refer it to the Competition Commission, which would conduct a long and expensive investigation and seek remedies.  The merger could be abandoned if this happens.

FCC Prepared to Implement Economically Unsound Access Charge Policy

December 1, 2008

Analysis by: GLG Expert Contributor

Analysis of:FCC to Consider Intercarrier Compensation Reform | www.fcc.gov

Given that minutes of use on the switched access network is decreasing, the price per minute of access should reflect the reduced calling volume.  Also, given that volume is declining, the FCC cannot assume that the marginal cost of terminating de minimis.  Its probably the opposite.

Credit Default Swaps: The Fed's Increasing Oversight Role Over a Clearinghouse

November 13, 2008

Analysis by: GLG Expert Contributor

Analysis of:Fed Said to Seek Oversight of Credit-Default Swap Clearinghouse | www.bloomberg.com

The Federal Reserve's potential regulatory role over a CDS clearinghouse is important to financial markets  participants, because it shows the Fed's increasing role in thawing credit markets and in the oversight of credit derivatives, and potentially others.  Moreover, a CDS clearinghouse is likely to be received well by global markets and it will cement the Fed's international leadership role in placating volatile credit derivative markets. Moreover, the Fed's oversight of a CDS clearinghouse is another signal that there is a need to add 'financial stability' to the Fed's mandate of maintaining full employment and price stability.

The next Sarbanes Oxley for 7 million businesses: Look for your letter from DHS

August 18, 2008

Analysis by: GLG Expert Contributor

Analysis of:Introducing Title IX: Voluntary Certification | www.avalution.com

The Department of Homeland Security is currently rolling out enforcement of Public Law 110-53, Title IX requiring all public and private businesses to  have continuity plan with independent third party certification. This law represents the potential to create a Sarbanes Oxley level of commitment and expense for all businesses. DHS will began contacting 7 million business next month. Every business needs a continuity plan. The 9/11 Commission found that "preparedness is not a luxury, but a cost of doing business." Public Law 110-53 and Title IX represent putting these principles into action. Businesses should be concerned that "voluntary" becomes dictatorial, oppressive, and a financial disaster. Unless industry acts collectively to design industry specific voluntary standards that can be self-evaluated, a Sarbanes-Oxley regulatory type continuity burden will quickly follow for continuity and disaster planning.

In Re: “Electric” Cars; Has Anybody Thought About the Future of “Coal” Cars?

July 23, 2008

Analysis by: GLG Expert Contributor

Analysis of:Former GM CEO Stempel On The Future Of Electric Cars | online.wsj.com

Battery operated cars have,  no clear  future for these reasons: (1) too costly, (2) the more the battery system  is efficient the more trouble-prone and costly-to-repair it becomes, (3) you need electricity to constantly recharge the batteries; this excess demand for electricity has to come from either coal, nuclear or few hydroelectric plants, (4)  new capacities thus need to be built and added to the cost of furnishing the system of repair centers  with new equipment  & repairmen.   About 70 years ago, a handful of  German chemical plants, converting coal to gasoline ( via Fischer – Tropsch methodology ), supplied more than 400 panzer divisions of Wehrmacht and all the cars in occupied Europe and USSR.   The state of Illinois alone has more coal-to-oil reserves than the whole Saudi Arabia. Apart from Illinois, there’s coal virtually everywhere in the U.S. and in Europe ( not to mention China and other Far East countries.)  

Jeff StierAssociate DirectorAmerican Council on Science and Health

CBO Data On Follow-on Biologics Is More Interesting Than It Sounds.

July 1, 2008

Analysis of:Follow-On Biologics Legislation Could Save Billions of Dollars, According to CBO | www.kaisernetwork.org

The report explains that creating a pathway to allow for follow-on biologics will save billions of dollars over the next 10 years. The report will be used to press for quick passage of the House and Senate versions of the legislation.

CBO Estimates About Savings From Follow-On Biologics Are (Necessarily) Very Crude -- and Probably Overly Optimistic

July 1, 2008

Analysis by: GLG Expert Contributor

Analysis of:Follow-On Biologics Legislation Could Save Billions of Dollars, According to CBO | www.kaisernetwork.org

There any many imponderables in the CBO estimates, including the period of marketing exclusivity (if any) granted by not-yet-passed legislation and the extent to which the FDA requires new clinical trials for follow-on biologics.  I would argue, therefore, that their predictions are premature.

Working from home not only makes sense but is a financial bonus to the employer and employee

June 23, 2008

Analysis by: GLG Expert Contributor

Analysis of:Can I work from home? | www.blonnet.com

Saves employers office space, desk space, parking space all of which can now be allocated on a shared basis. Saves employees increasingly more expensive travel costs due to rising petrol costs, road fees, and wear and tear on the human and the auto. Everything performs best in a relaxed state. less time on the road means more time to work, and less stress to work in.

Martin AlpertVice President, Environmental ClaimsHINZ CLAIM MANAGEMENT INC

Security: Placing a value on your private information!

May 13, 2008

Analysis of:Proposed privacy rules rile small brokerage firms | www.investmentnews.com

Protecting the privacy of your personal information should remain a paramount concern!Some brokerage firms may have to close their doors with increased security costs!

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