The restoration of Glass-Steagall is a financial regulatory "reform" having a political moment. Most people seem to approve of it without knowing what it means or why it could be beneficial. The strangest premise of Glass-Steagall is the idea that commercial banking must be separated from investment banking in order to protect the banking business. In reality, the business of making commercial loans on collateral that is either illiquid or nonexistent seems far riskier than the business of…

This case illustrates the diversity of sources from which one can steal information that is material to securities trading. Improper acquisition and subsequent use of such information in securities trading can subject the thief to wire fraud liability, even if the original source of the information obtained was not from an insider and might, in some cases, have been permitted to be used for trading.

Market participants are adamant that liquidity has declined. Regulators are adamant that liquidity has not declined or that, if it has declined, it is because of factors other than regulatory change. Who, then, is one to believe? Consider this: the regulators control the terms of this debate; they put out the reports. Before embracing their position, here are a few observations that should give one pause:

First, the report concedes that "regulatory…

Firms should consider reviewing this SEC Bulletin with their retail sales personnel. For firms that discover that their retail sales personnel are selling classes of shares that might not be appropriate, more training may be necessary regarding client suitability profiles.