Bean counters in a bind: trade-off expands duties; Congress protected accountants from investor suits. But new 'whistleblower' obligations could make them squirm

Article Abstract:

Lawyers Andrew J. Pincus and Mark H. Gitenstein of Chicago's Mayer, Brown and Platt lobbied successfully for the Securities Litigation Reform Act and their accountant-clients are relieved that no class actions have been filed against the profession since the law was enacted. Accountants are, however, concerned about a provision in the law requiring outside auditors to report wrongdoing to the SEC without delay because defense lawyers warn that this provision goes beyond the Generally Accepted Auditing Standards. Plaintiffs' attorneys may file suits testing the new law.

United States, Accountants, Whistle blowing, Whistleblowing

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Hurricane loans could mean work for banking firms

Article Abstract:

The Agriculture Department's Rural Development Authority will administer a new federally guaranteed loan program making $305 million available to Hurricane Andrew victims, according to a bill passed by Congress in late September. Loans of up to $5 million will be 80% government-guaranteed, and loans for more than that amount, up to $10 million, will be 70% guaranteed. Another bill, the Depository Institutions Disaster Relief Act of 1992, would ease restrictions in strict banking bills enacted due to the savings and loan crisis.

Analysis, Interpretation and construction, Banking law, Disaster relief, Government lending

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Big deals return; but they're not a cash cow for firms

Article Abstract:

Merger-and-acquisition activity has increased in 1993, with one example the proposed merger of Paramount and Viacom. The 1980s factors of hostile takeovers and leveraging are no longer present, however, which keeps a lid on the need for extensive legal involvement. Corporate counsel are also playing a larger role in these mergers than was formerly the case.

Management, Acquisitions and mergers, Attorneys, Legal specialization

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