Month: February 2008

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SBA Proposes Limitations on Set-Asides to Women-Owned Small Businesses

On January 30th, 2008 women's groups rallied in protest at a hearing held by the U.S. Senate Committee on Small Business & Entrepreneurship, chaired by Sen. John Kerry (D-Mass), regarding the Small Business Administration's (SBA) recent proposal to limit set-asides to women-owned small businesses (WOSBs) in federal contracting. These set-asides would be limited to four out of some 140 possible sectors in which women were underrepresented, as indicated by a recent RAND Corporation study. [1] Among the groups involved were the U.S. Women's Chamber of Commerce and National Association of Women Business Owners. According to Margot Dorfman, executive director of the U.S. Women's Chamber of Commerce, the RAND data can also be read to show that 87% of industrial sectors are underrepresented by WOSBs. [2]

The Clinton Administration recognized the relatively low success rate of WOSBs in winning federal contracts. In 1994 the Administration urged Congress to pass the Federal … Read the rest

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Free Trade Agreements and US Immigration Law

Since the implementation of the General Agreement on Tariffs and Trade (GATT) in 1947, the United States has signed several free trade agreements (FTAs) that have reduced barriers to international trade. [1] While these agreements traditionally focused on reducing barriers to the free flow of goods, services, and investments, more recent agreements have included provisions that directly affect US immigration law by creating additional nonimmigrant visa classifications to those available under the Immigration and Nationality Act. [2]

The Immigration and Nationality Act sets forth the nonimmigrant visa classifications by which foreign nationals may enter, work in, or invest in the United States. [3] Several of the visa classifications, such as the H1-B visa for workers in a specialty occupation and the H2-B visa for seasonal, peak load, or one time need workers, have annual numerical quotas and face chronic and increasingly worse shortages. FTA-created visa classifications, on the other hand,

… Read the rest
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Labor and Employment in the Workplace: A Hiring and Workplace Guide for New Business Owners

I. Introduction

The process of starting a business that relies on outside employees
is time consuming and often confusing. However, with the aid of a
qualified attorney and the implementation of the proper procedures, an
entrepreneur may be able to safeguard himself against many of the risks
of bringing other people on board while reaping the benefits. This
article will first discuss the basics of hiring a qualified employee
and suggest an organization for a family run business. It will then
discuss the implications of non-compete agreements, existence of trade
secrets, and creation of pension plans. Finally, it will conclude by
discussing the implications of retaining an attorney to aid in the
employee hiring process.

II. The Initial Hiring Process

There are a few basic issues every employer should be aware of
before beginning the hiring process. [1] "Unless your business is a
'one-man show,' there are a wide variety … Read the rest

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A New Height For Internet Search?: The Micro-Hoo Deal

Microsoft’s Offer

A $44 billion bid by Microsoft (“MSFT”) to acquire Yahoo (“YHOO”) may be an indicator of just how desperate Microsoft is to dominate the internet search market. [1] This bid may be reflective of Google’s threat to the world’s largest software maker. [2] With the offer on the table, analysts can only speculate about Yahoo’s response to the $44 billion possible merger.

Yahoo’s Evaluation

Microsoft’s proposal is currently being evaluated by Yahoo. However, Yahoo CEO Jerry Yang may be unlikely to accept the bid, because accepting the bid may be indicative of Yang’s failure as CEO. Yang replaced former Yahoo CEO Terry Semel promising to secure a competitive share of search advertising revenue. [3] [4] Notwithstanding Yang’s ego, the recent trend in Yahoo’s finances may eventually lead management to accept the bid, [5] given its deteriorating profits as well as a murky 2008 outlook that caused a 23 … Read the rest

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The Changing Korean Legal Market

I. Introduction

With so much possibility, South Korea’s legal market is virtually untapped, especially considering that it is today’s 10th largest economy in the world. [1] This is because South Korean law prohibits foreign lawyers from becoming licensed to practice within the country and also prohibits foreign law firms from establishing branches within South Korea. [2] South Korean lawyers not only have a very different legal education system, but also have an interesting monopoly within the legal market of Korea.  This long insulated legal system is about to change.  There has been recent proposed legislation to open the Korean legal market through the Foreign Legal Consultants Act. [3] This will most likely have world-wide affect and forever change how the legal system in Korea operates.

II. Foreign Legal Consultants

While foreign lawyers are not allowed to become licensed, they are allowed to be pseudo employed.  To be employed within Korea,

… Read the rest
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Scheme Liability: Devastating, Problematic, Obsolete

I. Capital Markets

With "more than half of all U.S. households," previously assessed at $57 million, participating in equity markets through "investments either directly in securities or indirectly in mutual funds" the need to maintain investor confidence is paramount. [1] Ways of maintaining investor confidence include enforcing strict compliance with established auditing, disclosure, and financial reporting requirements. [2] Furthermore, allowing adequate remedies at law for violations of securities law promotes investor confidence in the capital markets. However, investors seeking private class action lawsuits against potential defendants such as lawyers, banks, and accountants alleged to have aided and abetted securities fraud face a substantial impediment.

In a recent 5-3 decision, the United States Supreme Court ruled in the case of Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc. [3] Writing for the majority, Justice Anthony Kennedy was joined by Chief Justice John Roberts, Justice Samuel Alito, Justice Antonin Scalia, and Justice … Read the rest

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USA PATRIOT Act, Title III: The Efficacy of Anti-Terrorism Financing Measures

I. USA PATRIOT Act, Title III

On October 23, 2001 President George W. Bush signed into law the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 ("USA PATRIOT Act," or "Patriot Act"). [1] Since its enactment in 2001 and subsequent partial reauthorization in 2005, many financial institutions have struggled with the high cost of complying with Title III of the Patriot act and the stiff civil and criminal penalties for those who fail to comport to its requirements. [2] The Act's adoption of an expansive definition of the phrase "financial institution" has increased its range of regulation with portions of the Patriot Act affecting a profusion of entities ranging from commercial banks to travel agencies to casinos. [3]

Of primary concern for financial institutions is Title III of the Patriot Act, the International Money Laundering Abatement and Anti-Terrorist Financing Act of … Read the rest

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Basketball in Brooklyn: Taking it to the . . . Courts?

Recent news concerning the NBA's New Jersey Nets imminent move to
Brooklyn has met with protest from residents of the neighborhood where
the proposed arena is to be built.  In particular, a community group
composed of neighborhood organizations and individuals who live near
the proposed development site called Develop Don't Destroy Brooklyn is
leading the court battle against the proposed Barclays Arena and
Atlantic Yards development that would bring new life to the open-air
storage facility for buses and rail cars, but will also require the
destruction of currently occupied residential and commercial spaces. 
[1]  The Atlantic Yards development is a $4 billion, eight million
square feet project spanning 22 acres along Brooklyn's Atlantic Avenue
which includes a basketball arena for the New Jersey Nets' move to
Brooklyn, office buildings, thousands of apartments and condominiums (a
significant portion of which will be "affordable" as opposed to market
priced), as well … Read the rest

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La Grande Illusion

I. La Règle du Jeu

Société Générale SA (“SocGen”) seemed poised to become one of the strongest and most
well-respected financial institutions in Europe. In April 2007, they had acquired 75% of Banka
Popullore in Albania.[1]
Their stock, listed on the Euronext, reached an all-time high of $158.42 a share
on May 4, 2007, shortly following the acquisition of Banka Popullore. Their performance heading into 2008 had been
so strong that Risk Magazine named SocGen the Equity Derivatives House of the
Year.[2] Risk Magazine noted that SocGen has handled
the recent volatility in the market effectively through the use of innovation
and risk management.[3]

Despite these accolades and accomplishments,
SocGen has spiraled downhill since the start of the New Year.  This
article will examine how a rogue trader nearly brought SocGen to its
knees, why lax banking controls allowed it to happen, and how it can be
prevented in the … Read the rest

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Release the Hounds: NY Attorney General’s Office Pursues Wall Street (Again)

   As common as it is to find thin greasy pizza in Brooklyn, it is just as common to hear that the New York Attorney General's office is launching a zealous high-profile prosecution of Wall Street. One need only whisper the name "Spitzer" in lower Manhattan to receive a response of colorful epithets and conjure up a regime that has been described as, "the most egregious and unacceptable form of intimidation we've seen in this country in modern times."[1] That is quite a statement considering some of the actions undertaken by the U.S. Justice Department in recent years. However, Mr. Spitzer is safely ensconced in the N.Y. Governor's office; are not the days of feasting on Wall Street over? Not so fast, this past week current Attorney General Andrew Cuomo's office indicated it will pursue firms suspected of "mortgage abuses" linked to the national subprime mortgage fiasco.[2] This article will … Read the rest