- Posts by Daniel SpungenSenior Counsel
Daniel’s greatest strength is understanding both the business and legal needs of his clients. Daniel studied finance and economics prior to starting his legal career and continued to focus on the business world throughout law ...
The recent issues involving community and regional banks, such as Silicon Valley Bank, Signature Bank, and First Republic, have led depositors to flock to the larger banks, such as Chase. Chase’s CFO Jeremy Barnum, in Chase’s earnings call last Friday, stated that Chase saw “significant new account opening activity and meaningful deposit and money market fund inflows” and they estimate that they “have retained approximately $50 billion of these deposit inflows at quarter end.” Barnum elaborated that these inflows reversed an intra-quarter trend of increased deposit outflows.
Private placements can be a great resource for companies to raise capital in the current economic environment. They are cost effective in comparison to public offerings and provide greater decision-making latitude to current owners. Raising capital while keeping an entity private is an effective method for growing a business. Keeping a company private helps officers and directors take a long-term view of the company. Further, staying private has reduced administrative costs compared to public companies because private companies do not have the ongoing reporting obligations of public companies. Private placements allow companies to structure investments to meet their needs by issuing debt or equity investments under their terms. Whether the company is a newly formed start-up seeking the capital necessary to grow its business, or the company is more mature and would like to expand its ownership group by taking on new investors, private placements are versatile in how they serve companies.
On August 24, the Securities and Exchange Commission (SEC) released a draft of its strategic plan for 2022 – 2026, outlining its key initiatives for the next four years. The SEC’s mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. Its strategic plan is intended to further that mission by laying out goals that will guide its policy and decision making.
According to the Consumer Price Index (CPI), the United States is facing the highest inflation numbers in over 40 years. On April 12, 2022, it was announced that the CPI has increased 8.5% over the last 12 months, based on March 2022 data. The CPI has been steadily increasing since May 2020, and the impact is being felt by individuals and businesses.
Welcome to the Amundsen Davis Corporate Legal Update where our attorneys blog about insights on corporate governance, securities regulations, M&A news and more.
- Calming Depositor Angst at Community Banks
- New Guidance on the Beneficial Ownership Information Reporting Rule
- Cryptocurrency Companies Should Expect More SEC Enforcement in the Near Future
- FTC Announces Increases to Hart-Scott-Rodino Act Notification Thresholds and Filing Fees
- Forever Chemicals (PFAS) in Real Estate Transactions: Avoiding Forever Consequences
- Private Placement – State and Federal Law Considerations
- Patience is a Virtue: Landmark Federal M&A Broker Exemption Effective March 29, 2023
- Opt In/Out Deadline for New Wisconsin LLC Law is December 31, 2022
- Tick Tock: Election to Opt-Out of Wisconsin’s New “Creditor-Friendly” LP And LLC Acts Expire December 31, 2022
- What the SEC’s New Strategic Plan Means for the Financial Industry and Investors