Scott Resnik and Henry Bregstein, partners in the firm’s Litigation and Dispute Resolution and Financial Services practices, respectively, were quoted in a Reuters article on increasing regulatory scrutiny of financial transactions. “Perception is incredibly important. We're in the full breadth of a cycle of a regulatory system that is trying to really reestablish its street credibility,” Mr. Resnik says, adding, “The SEC, in its move to become a little bit more enforcement-like, is becoming a lot more agile. So you're seeing a flurry now of a lot more subpoenas coming, a lot more investigations getting opened, even a lot more voluntary requests for information.”

Mr. Bregstein says lawyers and clients must ensure that their products are marketed properly. “You can't cure a defective product by disclosure,” he says. “It is prudent that people who review the products now go back to the starting point.” He also points out that financial constraints may change how matters are settled. “Smaller clients are most likely to want to (settle) for peace, because just the cost of fighting the government is extraordinary. As you go up into more high-profile situations, it becomes, ‘What's the market perception if I settle?’” he says. (“Perception matters as regulators regroup,” April 28, 2010)