Corporate Governance

A European Union official is calling on U.S. regulators to issue tough rules forcing oil and mining company disclosure of payments to foreign governments, arguing this will enable “strong common and equivalent” transparency rules among the continents.

“A strong ruling from the [Securities and Exchange Commission] would give a clear and unequivocal message that the EU and the US are united in our drive stronger transparency rules for the extractive [industries],” states the Aug. 10 letter to the SEC from European Parliament member Arlene McCarthy.

It comes ahead of SEC’s planned Aug. 22 completion of the controversial rules, and planned European Parliament action on disclosure rules that she’s playing a lead role in crafting.

The Government Accountability Office (GAO) released a report Monday that says the ability of states to expand eligibility for federal food stamps made about 473,000 more people eligible for food stamps, and added about $460 million in extra costs in 2010. The GAO also said this increased expansion has increased the chances of fraud and abuse of the food stamp program.

The report was requested by Senate Budget Committee ranking member Jeff Sessions (R-Ala.) and leaders of the House Agriculture Committee, in light of dramatically rising costs to administer the $70 billion Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp program.

Oil companies are seeking an exemption from federal rules that would force them to disclose payments to foreign governments.

Oxfam America is suing the Securities and Exchange Commission to force completion of delayed regulations that will require oil, gas and mining companies to disclose payments to foreign governments.

The lawsuit filed Wednesday marks an escalation of human-rights groups’ efforts to ensure completion of the rules, which are required under the 2010 Dodd-Frank financial reform law but face opposition from the oil industry. 

The litigation, filed by Oxfam in the U.S. District Court for the District of Massachusetts, asks the court to compel the SEC to issue final rules within 30 days. The SEC is more than a year past the deadline set by the Dodd-Frank law.

The law requires the SEC to issue regulations that force SEC-listed oil, gas and mining companies to reveal payments to governments related to projects in their countries, such as money for production licenses, taxes, royalties and other aspects of energy and mineral projects.

Richard Trumka said the Obama administration could be more "aggressive" in pushing a disclosure rule on CEO pay.

House Oversight and Government Reform Committee Chairman Darrell Issa (R-Calif.) on Tuesday introduced a bill that would prevent recess-appointed officials from being paid a salary until they have been confirmed by the Senate.

Issa did not release a statement on his Recess Appointment Restoration Act, H.R. 4364, but it is likely a reaction to President Obama's decision in January to recess-appoint Richard Cordray as director of Consumer Financial Protection Bureau and three nominees to the National Labor Relations Board.

Obama is slated to deliver a Rose Garden statement on boosting oversight of oil markets and penaties for market manipulation. 

Mitt Romney's old private equity investment firm sent a letter to its investors on Tuesday defending its record in light of increased scrutiny as a result of the presidential race.

In the letter, the managing directors of Bain Capital, where Romney served as a top executive, listed a number of statistics about the company's growth as well as its business model and approach to consulting with companies.

The letter began with a paragraph expressing optimism about the company's performance in the current year. It then went on to stress that it is not a partisan organization.

"While we have a great deal of respect across our partnership for all those who pursue public service, including President Obama and Gov. Romney, we are not a political organization and take no public position on any candidate," the directors write in the letter.

"Many of our managing directors and employees make individual decisions to support causes and political candidates espousing a range of views, but we assure you that Bain Capital itself is separate from politics."

Several business groups filed appeals Monday to a court ruling that allowed the National Labor Relations Board (NLRB) to require union posters in the workplace.

The Coalition for a Democratic Workplace, The National Federation of Independent Business (NFIB) and the National Association of Manufacturers (NAM) filed notices of appeal against a judge’s decision Friday that said the NLRB had the legal authority to require employers to post notices at their worksites explaining collective bargaining rights.

In a 96-3 vote, the Senate prohibited members from using non-public information for personal financial gain.