Thacher Proffitt Publishes Derivatives and Structured Products Note Entitled ''Swaps...

Thacher Proffitt Publishes Derivatives and Structured Products Note Entitled ''Swaps Under Fire in Jefferson County''

Note provides insight into the SEC's first assertion of
jurisdiction over swaps.
NEW YORK--(Business Wire)--
Thacher Proffitt & Wood LLP announced today that its Derivatives
and Structured Products practice group has published, "Swaps Under
Fire in Jefferson County: SEC Signals Increased Swap Enforcement for
Hedge Funds, Swap Dealers, and Others." The note discusses SEC v.
Langford, a civil action filed by the SEC on April 30, 2008, alleging
securities fraud in connection with interest rate swaps entered into
by Jefferson County, Alabama.(1) The case marks the SEC's first
enforcement action involving swap contracts, even though the SEC has
had anti-fraud enforcement jurisdiction over so-called "security-based
swap agreements" for eight years.

Jeffrey H. Koppele, chair of Thacher Proffitt's Derivatives and
Structured Products practice group and a partner with more than a
decade of experience structuring derivatives and structured products,
said: "This case is noteworthy both because the SEC asserts expansive
and untested theories of its jurisdiction over swap agreements, and
because the SEC apparently intended that this action be a signal to
the markets of a new focus on swap arrangements."

The note describes the portions of the SEC's complaint relevant to
the swap-related fraud charges, summarizes the statutory basis for -
and scope of - the SEC's jurisdiction over swap agreements generally,
and examines the SEC's jurisdictional claims.

Thacher Proffitt regularly represents hedge funds, swap dealers
and other swap market participants, negotiating derivatives
documentation and advising on the securities, banking, bankruptcy, tax
and ERISA laws affecting derivatives transactions. We provide advice
on the full range of derivatives and structured products.

Useful Resources

-- Swaps Under Fire in Jefferson County: SEC Signals Increased
Swap Enforcement for Hedge Funds, Swap Dealers, and Others, a
Thacher Proffitt publication authored by Jeffrey H. Koppele

-- Hedge Funds and ISDA Master Agreements: Drafting
Considerations in a Fluid Market, a Thacher Proffitt
publication authored by Jeffrey H. Koppele

-- Learn about our Derivatives and Structured Products Group

-- Get a copy of "Common Terms in Structured Finance: 3rd
Edition", a Thacher Proffitt publication that identifies and
explains important terms used in today's sophisticated
financial transactions.

-- Subscribe to future editions of Derivatives and Structured
Products Notes by sending your contact information to
lcospito@tpw.com.

About Thacher Proffitt & Wood LLP

Founded in 1848, Thacher Proffitt has more than 250 lawyers in
four locations - New York, NY, Washington, DC, White Plains, NY, and
Summit, NJ. We advise clients domestically and internationally on a
range of matters involving: banking, bankruptcy, compensation and
benefits, corporate and securities, international, litigation and
dispute resolution (including subprime), real estate, structured
finance, tax, technology and intellectual property, and trusts and
estates. Learn more about our creative legal solutions at www.tpw.com,
including our industry awards and rankings.

(1) SEC v. Langford, Civil Action No. cv-08-B-0761-S (N.D. Ala.,
filed April 30, 2008). The complaint also alleges securities fraud in
connection with a number of Jefferson County's municipal bond
offerings.

Thacher Proffitt & Wood LLP
Jessica Semon
PR & Communications Specialist
212-912-7504
jsemon@tpw.com
or
Ashley Bedard
PR Coordinator
212-912-7692
abedard@tpw.com

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