SEC EXPRESSES DISAPPOINMENT AT COURT OF APPEALS DECISION

The following is an excerpt from the SEC website: "Regarding Court of Appeals Decision on Proxy Access by Meredith Cross Director, Division of Corporation Finance U.S. Securities and Exchange Commission July 22, 2011 "We are disappointed by today's decision striking down a rule that made it easier for shareholders to nominate a candidate to a company's board of directors. We are considering our options going forward. We note that our rule allowing shareholders to submit proposals for proxy access at their companies, which we adopted at the same time, is unaffected by the court's decision." Corporations are not democracies and therefore have no interest in listening to shareholders unless there are just a few shareholders who have together enough voting shares in the company to actually be able to bring about a successful revolution and roust the top managers from their office lair. Unfortunately, too many corporations are run much like despotic dictatorships and the only way that management is ever changed is when the lights go out and the business is shut down due to the incompetence of management. So, in terms of how the owners are treated the modern corporation is like something dreamt up by Lenin except for the only workers who have rights at a corporation are the top managers (party leaders).

SEC AND CAPITAL MARKETS BOARD OF TURKEY ANNOUNCE ENHANCED COOPERATION

The following excerpt is from the SEC website: “Washington, D.C., July 22, 2011 – The Securities and Exchange Commission and the Capital Markets Board of Turkey (CMB) today announced a new relationship to enhance cooperation and collaboration with the aim of promoting investor protection, fostering market integrity, and facilitating cross-border securities activities between Turkey and the United States. In light of the growing interest in the cross-border flow of financial services and investment between the U.S. and Turkey, the dialogue will provide an opportunity for the SEC and the CMB to discuss issues of common concern, including those relating to supervisory and enforcement matters. SEC Chairman Mary Schapiro and CMB Chairman Dr. Vedat Akgiray elaborated on the terms establishing the structure of and agenda for a SEC-CMB dialogue, which has three main objectives: Identify and discuss regulatory issues of common concern. Improve cooperation and the exchange of information in cross-border securities enforcement matters. Maintain and continue to develop the existing jointly-sponsored training and technical assistance programs that benefit the SEC, CMB, and other regulators in the region. Chairman Schapiro said, “Participating in cross-border efforts to increase transparency for investors, promote well-regulated markets, and strengthen cooperation in supervisory and enforcement matters is essential for any securities regulator in today’s global markets. The initiative established today will serve to benefit investors in the United States and Turkey, and facilitate cross-border capital flows.” Chairman Akgiray said, “With the new dynamics caused by global financial markets, we would like to capitalize on this international dimension to the benefit our fast-growing capital market in Turkey. With this vision, the CMB and the SEC cooperation that will occur through this bilateral regulatory dialogue will significantly improve cooperation for regulatory and supervisory issues, address common concerns more effectively, and therefore prove to be mutually beneficial. Upgrading our financial markets in an internationally collaborative way will contribute to the Istanbul Financial Center workplan as well. We believe this initiative will facilitate the CMB’s mission of investor protection, market integrity, and a regulatory environment that encourages capital formation.” Ethiopis Tafara, Director of the SEC’s Office of International Affairs, said, “We benefit immensely in obtaining the CMB’s perspectives on current challenges that securities regulators face given CMB’s unique location within the region. We look forward to discussions on a variety of matters of importance to investors in the global marketplace, including improving oversight of market intermediaries and the development of markets for small enterprises.” This announcement reflects the long-standing tradition of bilateral technical assistance programs between the SEC and CMB. In 2008, 2009, and 2010, the CMB co-sponsored three major regional training sessions in Turkey on market regulation, inspections, enforcement, and disclosure with more than 575 people trained, including financial services staff and officials from the Turkish market as well as other foreign authorities from the region. At these programs, SEC and CMB senior staff shared their insights on promoting timely and accurate disclosure and transparency as a tool for regulating capital markets. The CMB has been particularly successful in attracting participation in these market-development training programs due to its current role as head of IOSCO’s Emerging Market Committee.” Whenever looking at geographic locations to invest in it should be of concern for every investor as to whether the information you obtain is obtained using the same methods as you have in your own nation. The more cooperation there is between markets should over time help to promote universal standards which will make sure that the reporter and user of financial information no matter where in the world each is located, are both reading off the same exact page.

COURT STRIKES DOWN SHAREHOLDER FRIENDLY RULE

The following is an excerpt from the SEC website: "Regarding Court of Appeals Decision on Proxy Access by Meredith Cross Director, Division of Corporation Finance U.S. Securities and Exchange Commission July 22, 2011 "We are disappointed by today's decision striking down a rule that made it easier for shareholders to nominate a candidate to a company's board of directors. We are considering our options going forward. We note that our rule allowing shareholders to submit proposals for proxy access at their companies, which we adopted at the same time, is unaffected by the court's decision." Corporations are not democracies and therefore have no interest in listening to shareholders unless there are just a few shareholders who have together enough voting shares in the company to actually be able to bring about a successful revolution and roust the top managers from their office lair. Unfortunately, too many corporations are run much like despotic dictatorships and the only way that management is ever changed is when the lights go out and the business is shut down due to the incompetence of management. So, in terms of how the owners are treated the modern corporation is like something dreamt up by Lenin except for the only workers who have rights at a corporation are the top managers (party leaders).

CONCURRENCE STATEMENT: EFFECTIVE DATE OF SWAP REGULATION

The following is an excerpt from the CFTC website:

Concurrence Statement on the Order Regarding the Effective Date for Swap Regulation
Commissioner Scott D. O’Malia
July 14, 2011

I concur with the Commission’s decision to use its exemptive authority under section 4(c) of the Commodity Exchange Act (CEA) to provide temporary relief from certain provisions of the Dodd-Frank Act. This order will provide much needed legal certainty to the market, at least until December 31, 2011, while the Commission continues its efforts to adopt final rules under the Dodd-Frank Act. Whereas I support the Commission in providing legal certainty, albeit limited, I am disappointed in the lack of harmonization between our order and the exemptive relief that the Securities and Exchange Commission (S.E.C.) provided. I am also disappointed that the final order ignored a number of comments from market participants, those that have most at stake in each of the Commission’s decisions. I hope that this order does not foreshadow the direction of final rulemakings to come.

Lack of Harmonization

In general, the S.E.C.’s order provides exemptive relief until the relevant final rulemaking is implemented. The Commission’s order provides such relief only until December 31, 2011. I proposed an amendment that would have conformed the two orders that the Commission rejected. The S.E.C. is a full partner in many of our rulemakings; it only makes sense to develop identical relief policies. The C.F.T.C.’s sunset provision is based on an arbitrary date and cuts short the very legal certainty that this order purports to provide. Moreover, participants from every aspect of our market – including investor advocates, a designated contract market and derivatives clearing organization, a potential swap execution facility, and multiple trade associations representing intermediaries – commented that the December 31, 2011, expiration date is unnecessary. In contrast, only one commenter supported the expiration date.

Comments from Market Participants

In addition to not heeding market participants with respect to the expiration date, the Commission has also not addressed the public’s requests for an implementation plan. I have repeatedly asked the Commission to set forth an implementation plan for public notice and comment. S.E.C. Chairman Shapiro indicated, in her prepared remarks before the House Financial Services Committee, that the S.E.C. is working on an implementation plan that will include opportunity for public comment. This Commission has already begun voting on final rules, but we have yet to see a proposed implementation plan.

Market participants bear the burden of implementing the multitude of reforms that the Commission is proposing. We cannot pretend that Dodd-Frank has any chance of meeting its goals if we do not work with the public to implement the regulatory requirements.

The Commission is currently planning to meet on August 4th to consider several final rules. I strongly urge the Commission to put forward an implementation plan for public comment during the month of August. This provides a perfect opportunity to receive comment on rule order and implementation, without delaying the Commission schedule this fall. If we wait until September, we will only have ourselves to blame."

TWO FLORIDA BANKS CLOSED AND TAKEN OVER BY AMERICAN MOMENTUM BANK

The following is an excerpt from a press released e-mailed by the FDIC: July 22, 2011 American Momentum Bank, Tampa, Florida, acquired the banking operations, including all the deposits, of Southshore Community Bank, Apollo Beach, Florida, and LandMark Bank of Florida, Sarasota. The two banks were closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with American Momentum Bank. Southshore Community Bank had two branches, and LandMark Bank of Florida had six branches. All eight branches of the two closed banks will reopen during normal business hours beginning Saturday as branches of American Momentum Bank. Depositors of the two failed banks will automatically become depositors of American Momentum Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of the two failed banks should continue to use their existing branches until they receive notice from American Momentum Bank that it has completed systems changes to allow other branches of American Momentum Bank to process their accounts as well. This evening and over the weekend, depositors can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual. As of March 31, 2011, Southshore Community Bank had approximately $46.3 million in total assets and $45.3 million in total deposits; and LandMark Bank of Florida had total assets of $275.0 million and total deposits of $246.7 million. In addition to assuming all of the deposits of the two Florida banks, American Momentum Bank agreed to purchase essentially all of their assets. Customers with questions about today's transaction should call the FDIC toll-free: for Southshore Community Bank customers, 1-800-894-2013, and for LandMark Bank of Florida customers, 1-800-889-4976. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Interested parties also can visit the FDIC's Web sites: for Southshore Community Bank, http://www.fdic.gov/bank/individual/failed/southshore.html and for LandMark Bank of Florida, http://www.fdic.gov/bank/individual/failed/LandMark.html. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Southshore Community Bank will be $8.3 million and for LandMark Bank of Florida, $34.4 million. Compared to other alternatives, American Momentum Bank's acquisition of the two institutions was the least costly resolution for the FDIC's DIF. The closings are the 56th and 57th FDIC-insured institutions to fail in the nation so far this year and the eighth and ninth in Florida. The last FDIC-insured institution closed in the state was First Peoples Bank, Port Saint Lucie, on July 15, 2011."

BANK OF CHOICE WAS TAKEN OVER BY THE FDIC

The following press release was sent out by the FDIC via e-mail: "Bank of Choice, Greeley, Colorado, was closed today by the Colorado Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank Midwest, National Association, Kansas City, Missouri, to assume all of the deposits of Bank of Choice. The 17 branches of Bank of Choice will reopen during their normal business hours beginning Saturday as branches of Bank Midwest, N.A. Depositors of Bank of Choice will automatically become depositors of Bank Midwest, N.A. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Bank of Choice should continue to use their existing branch until they receive notice from Bank Midwest, N.A. that it has completed systems changes to allow other Bank Midwest, N.A. branches to process their accounts as well. This evening and over the weekend, depositors of Bank of Choice can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual. As of March 31, 2011, Bank of Choice had approximately $1.07 billion in total assets and $924.9 million in total deposits. In addition to assuming all of the deposits, Bank Midwest, N.A. agreed to purchase approximately $853.0 million of the failed bank's assets. Customers with questions about today's transaction should call the FDIC toll-free at 1-800-887-7340. The phone number will be operational this evening until 9:00 p.m., Mountain Daylight Time (MDT); on Saturday from 9:00 a.m. to 6:00 p.m., MDT; on Sunday from noon to 6:00 p.m., MDT; and thereafter from 8:00 a.m. to 8:00 p.m., MDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/bankofchoice.html. As part of this transaction, the FDIC will acquire a value appreciation instrument. This instrument serves as additional consideration for the transaction. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $213.6 million. Compared to other alternatives, Bank Midwest, N.A.'s acquisition was the least costly resolution for the FDIC's DIF. Bank of Choice is the 58th FDIC-insured institution to fail in the nation this year, and the fifth in Colorado. The last FDIC-insured institution closed in the state was Signature Bank, Windsor, on July 8, 2011."