Earlier this month, the Federal Reserve System's Board of Governors, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency issued a joint warning that banks are weakening underwriting on commercial real estate loans. According to the regulators, some banks are allowing more underwriting exceptions and are not sufficiently monitoring market conditions. These regulators said that they will increase their scrutiny of lenders and may request banks to strengthen their underwriting standards, raise capital or better monitor their loans.
New SEC rules govern companies issuing stock through crowdfunding
Minnesota entrepreneurs and investors may be interested to know that the U.S. Securities and Exchange Commission has adopted final regulations, effective in the summer of 2016, governing the issuance of stock through crowdfunding. Crowdfunding has become a popular way to raise capital over the internet. It has not been generally used to offer and sell stock, however, because doing so would require compliance with federal securities laws.
Employment disputes can pop up around the holidays
The holiday season often presents unfortunate opportunities for legal problems for businesses because of an increase in business demand, more business hours, temporary workers and the need to meet consumer demands. Any legal shortcuts may pose legal problems that last well after the new year.
Real Estate requires a scorecard
Commercial real estate transactions are not limited to drafting a purchase agreement and signing a sales contract with sellers and purchasers. Profitable and legal use of real estate includes numerous players in several venues. Any of these actors may stop progress on a commercial venture or even stop it from beginning.
Custodians gain class action status for wage lawsuit
Any business disputes or employee lawsuits can be costly, complex and lengthy. Recent business litigation between an Illinois-based company and some of its employees also shows how a lawsuit can grow.
